Rhode Island Sales Tax

The current state sales tax rate in Rhode Island (RI) is 7%. Rhode Island is one of the few states having a single sales tax that applies to the entire state. In Rhode Island, businesses selling, renting, or leasing taxable tangible personal property at retail must register with the state and collect sales tax. Taxable service providers must additionally register with the state. Rhode Island is a state with a Streamlined Sales Tax (SST). As a result, Rhode Island encourages out-of-state businesses that are not required to collect sales tax to register with the state. For SST, Avalara is a Certified Service Provider (CSP). Purchases of taxable goods and services for use by a business that do not require the payment of sales tax to the Rhode Island Division of Taxation must be accompanied by the submission of a Consumer’s Use Tax Return.

Sales Tax Rates in Rhode Island by County

In Rhode Island, when do you have to charge sales tax?

If your business has a sales tax nexus in Rhode Island, you must charge sales tax. In different states, the term “sales tax nexus” signifies different things. It could be having a physical site (e.g., a brick and mortar business) or having someone working for you in the state. It can also refer to having a ‘affiliate’ or ‘click through’ sales tax nexus in the case of ecommerce.

Check the Rhode Island government’s sales tax website to see if you should be charging sales tax in your state.

In Rhode Island, which items are exempt from sales tax?

Prescription medications, for example, are free from sales tax in Rhode Island. There are also Rhode Island sales tax exemptions that can be used if the seller or buyer meets specific requirements.

Check the Rhode Island government’s tax website for a complete list of exemptions.

What is Rhode Island known for?

Rhode Island is known for:

• Spectacular coastline
• Seaside colonial towns
• Jewelry manufacturing

Rhode Island Fun Facts

• The Rhode Island colony was founded on present-day Aquidneck Island, the largest island in Narragansett Bay. There are two theories on how Aquidneck Island came to be known as Rhode Island: 1) Explorer Giovanni da Verrazzano visited the island near the mouth of Narragansett Bay in 1524, and he compared it to the island of Rhodes in the Mediterranean. 2) Dutch explorer Adraen Block called Aquidneck “een rodlich Eylande,” meaning “an island of reddish appearance” in 1625.
• On May 4, 1776, Rhode Island declared its independence from Great Britain, the first state to do so. 
• Judge Darius Baker imposed the first jail sentence for speeding in an automobile on August 27, 1904, in Newport, Rhode Island. The offender was found guilty of speeding at 15 miles per hour.
• The first U.S. Open Championship was played on the nine-hole course of Newport Golf and Country Club in Rhode Island on October 4, 1895.
• The Tennis Hall of Fame is located in Newport, Rhode Island.  
• Even though Rhode Island has five counties, there is no county government. Local governance is provided by the eight cities and 31 towns.
• The start of the Industrial Revolution is often attributed to the development and construction in 1790 of Samuel Slater’s water-powered cotton mill in Pawtucket, Rhode Island.
• Nine Men’s Misery monument in Cumberland, Rhode Island, is the oldest known monument to veterans in the United States.
• Roger Williams founded the first Baptist Church in Providence, Rhode Island, in 1638.  It is the oldest Baptist congregation in America. 
• In 1852, Rhode Island became the first state to abolish the death penalty for all crimes.
• In Rhode Island, the law requires that one must give a timely, audible signal before passing a car on the left.

Tourist Attractions in Rhode Island

• Beavertail Lighthouse: Lighthouse and museum in Jamestown, Rhode Island.
• Block Island Ferry: Ferry service located in Narragansett, Rhode Island.
• Colt State Park: State park in Bristol, Rhode Island.
• Fort Adams State Park: State park in Newport, Rhode Island.
• International Tennis Hall of Fame: Museum in Newport, Rhode Island.
• Marble House: Museum in Newport, Rhode Island.
• Misquamicut State Beach: State park in Westerly, Rhode Island.
• Narragansett Beach: Beach in Narragansett, Rhode Island.
• Newport Cliff Walk: Public access walkway along the shore line in Newport, Rhode Island.
• Providence Athenaeum: Library and cultural center in Providence, Rhode Island.
• Prudence Island: Island in the Narragansett Bay, located in Portsmouth, Rhode Island.
• RISD Museum: Art museum in Providence, Rhode Island.
• Roger Williams Park Zoo: Zoo in Providence, Rhode Island.
• Rosecliff: Mansion in Newport, Rhode Island.
• Sachuest Beach: Beach in Middletown, Rhode Island.
• WaterFire: Award-winning sculpture by Barnaby Evans in Providence, Rhode Island.
• Wright’s Dairy Farm and Bakery: Bakery on a farm located in North Smithfield, Rhode Island.
• Yawgoo Valley: Ski resort in Exeter, Rhode Island.