Rhode Island Sales Tax Overview
In Rhode Island, there is a single statewide sales tax rate of 7% with no additional local taxes. The state is a member of the SSUTA, ensuring uniformity in tax definitions across transactions.
Exemptions and Taxable Items in Rhode Island
- The state’s clothing exemption applies only to the first $250 of each item, with certain clothing considered taxable.
- Groceries, clothing, and prescription drugs are exempt from sales tax in Rhode Island.
- Prepared Food is subject to special sales tax rates under state law.
Sales Tax Details and Exemptions
- Rhode Island imposes a 7% sales tax on most tangible items, with exemptions for goods for resale.
- Notable exceptions to taxable items include groceries, clothing, medical devices, and prosthetic devices.
Sales Tax Permits and Other Taxes
- A sales tax permit in Rhode Island allows businesses to collect and remit sales tax legally.
- In addition to sales tax, Rhode Island has a 6% hotel tax and a 1% meals and beverage tax for eating and drinking establishments.
Rhode Island Sales Tax Rates and Filing
- The sales tax rate in Rhode Island is 7%, with due dates based on filing frequency.
- Sales tax is collected on prepared food, and tangible personal property and many services are taxable in the state.
Tax Exemptions in Other States
- Alaska, Delaware, Montana, New Hampshire, and Oregon do not tax groceries, candy, or soda.
- Wisconsin has a state sales tax rate of 5% and exempts food, medicine, and newspapers but taxes clothing.
Clothing Tax Exemption
- Four states exempt all clothing from sales tax: Delaware, Montana, New Hampshire, and Oregon.
- In most states, including Rhode Island, clothing purchases may be subject to tax, especially luxury items over a certain price threshold.
Sales Tax Collection in Wisconsin
- Wisconsin has a state sales tax rate of 5%, with the total rate potentially reaching 5.6% with local taxes.
- While food, gas, and prescriptions are tax-exempt in Wisconsin, clothing is taxable.
Sales Tax Responsibilities in Wisconsin
- Sellers meeting certain thresholds in Wisconsin must register to collect sales tax.
- Storing inventory in Wisconsin warehouses creates sales tax obligations for businesses.