Sales tax
Rhode Island Sales Tax in 2026: 7% Rate, Meals Tax, Hotel Tax and Permits
Rhode Island sales tax 2026: the 7% rate, 1% meals tax, 14% total on hotels and whole-home rentals, the free permit, filing by the 20th and examples.
Edited by Sumeet YadavFounder & editor, MSMETOOLS · fact-checked against official sources
Contents (10)
- 1. How Rhode Island's sales tax works
- 2. What's taxable and what's exempt
- 3. The 1% local meals and beverage tax
- 4. Hotel and short-term rental taxes: the 2026 changes
- 5. Worked examples in dollars
- 6. Getting and renewing a sales tax permit
- 7. Filing, due dates and penalties
- 8. Remote sellers and marketplaces
- 9. Common mistakes and how to fix them
- 10. What to do next
Rhode Island charges one of the higher state sales tax rates in the country, 7%, but it keeps the system flat: no county taxes, no city sales taxes, and the Division of Taxation collects almost everything itself. The extra layers sit on food and lodging. Restaurants add a 1% local meals tax, and since January 1, 2026, every short-term stay, from a Providence hotel room to a Block Island beach house, carries 14% in combined taxes. This guide is for Rhode Island retailers, restaurants, rental hosts and remote sellers who need the 2026 rules, with worked examples. The Division's website blocks automated access, so we read its pages and advisories through Internet Archive captures from 2026 and say where a figure comes from a secondary source.
Quick answer
Rhode Island's sales tax rate is 7% statewide, with no local sales taxes. Meals and drinks add a 1% local meals and beverage tax (8% total). Short-term lodging pays 14%: 7% sales tax, a 5% state hotel tax or 5% whole-home tax, and a 2% local hotel tax.
The sales tax permit is free, but must be renewed every year by February 1
Returns are due the 20th of the following month
Short-term parking became taxable at 7% on October 1, 2025
Late payment costs 10% of the tax due, plus interest
Remote sellers collect after $100,000 or 200 transactions
How Rhode Island's sales tax works
Rhode Island taxes retail sales, rentals and leases of tangible personal property, certain public utility services and a list of services the law names, at 7% of gross receipts. Any sale is a retail sale unless the buyer is going to resell the item in the regular course of business. The Division of Taxation's sales tax page lists typical taxable sellers: appliance, furniture, crafts, antiques, jewelry, electronics and computer and software retailers, telecommunications and cable TV providers, and eating and drinking establishments.
There's no local sales tax to look up. The 7% rate applies in every city and town. The Division does administer two local taxes on top, the meals and beverage tax and the local hotel tax, but they're set statewide, so the rate is the same in Westerly as in Woonsocket. The one geographic exception is that hotel tax filers in Newport pay the hotel tax collected directly to the city.
Use tax at 7% applies to taxable goods stored, used or consumed in Rhode Island when sales tax wasn't paid. Businesses that buy equipment or supplies from out-of-state sellers that don't collect file a consumer's use tax return. Casual purchases of motor vehicles and trailers from private sellers are taxed at 7% of the higher of the price paid or the value in a recognized appraisal guide, with exemptions for certain transfers such as those between close family members.
The sales tax is a trust fund tax. Money you collect belongs to the state until you remit it, and must be kept available to pay on the due date. Officers or employees responsible for collecting or paying who divert it face fines of up to $10,000 and up to a year in prison, on top of civil penalties.
Rhode Island at a glance (2026)
7%
Sales and use tax
No local sales tax
1%
Local meals and beverage tax
14%
Total tax on short-term lodging
From Jan 1, 2026
free
Sales tax permit
Renew yearly
20th
Monthly return due
What's taxable and what's exempt
Goods are taxable unless an exemption applies. Rhode Island exempts most groceries bought for home consumption, prescription drugs and sales to the state, Rhode Island municipalities and the federal government. Purchases by state or municipal governments from other states are taxable. Charitable and religious organizations need a Rhode Island Exempt Organization Exemption Certificate; manufacturers and farmers have their own certificates. Retailers shouldn't accept other states' exemption certificates.
Clothing and footwear get a partial exemption. Secondary tax guides, including Kintsugi's 2026 Rhode Island guide, report that the first $250 of each item is exempt and only the excess is taxed. We couldn't open the Division's own "What's Taxable" page to confirm the current threshold, so check it before you set your register. Accessories such as jewelry and handbags are generally taxable.
Services are taxable only if the law lists them. The FY2026 budget added short-term parking to that list from October 1, 2025: parking in a garage or lot for less than a month now carries 7% sales tax, while monthly parking does not. Telecommunications, cable television and certain other enumerated services were already taxable.
Goods delivered outside Rhode Island aren't subject to Rhode Island tax, though you may owe tax in the destination state. An out-of-state resident who takes possession of goods in a Rhode Island store pays Rhode Island tax.
The 1% local meals and beverage tax
Rhode Island adds a 1% local meals and beverage tax to all prepared food and beverages sold by eating and drinking establishments, under R.I. Gen. Laws § 44-18-18.1. It applies whether the food is prepared on site and whether it's eaten there or taken away. Together with the sales tax, a restaurant bill pays 8%.
Despite the name, the Division of Taxation administers and collects the tax, not the towns. To collect it, a business registers for a sales tax account with the Business Application and Registration (BAR) form and also registers for a litter permit account. The meals tax is filed on Form MTM (monthly) or MTQ (quarterly), on the same frequency as your sales tax. Monthly returns are due by the 20th of the following month; quarterly meals returns, by the 30th day of the month after the quarter.
Food trucks, cafés, bars, caterers and convenience stores with prepared food all count as eating or drinking establishments for this purpose. If you sell both groceries and hot food, the meals tax applies only to the prepared items.
Hotel and short-term rental taxes: the 2026 changes
Two changes enacted in 2025 took effect for stays on or after January 1, 2026, according to the Division's Advisory 2025-16. The local hotel tax, which applies to every short-term rental of 30 days or less including hotels, rose from 1% to 2%. And a new 5% whole-home short-term rental tax now applies to houses, condos, mobile homes and other residential dwellings rented in their entirety, including vacation rentals booked through hosting platforms.
The whole-home tax replaces, rather than adds to, the 5% state hotel tax on room rentals. No stay pays both. The result is the same 14% for a hotel room and a whole house:
| Rental type | Stay length | Taxes from January 1, 2026 | Total |
|---|---|---|---|
| Hotel room or rented room | 30 days or less | 7% sales + 5% state hotel + 2% local hotel | 14% |
| Whole house or condo | 30 days or less | 7% sales + 5% whole-home + 2% local hotel | 14% |
| Room or whole home | More than 30 days, no break | No sales or hotel taxes | 0% |
Taxes follow the date of occupancy, not the booking date. The Division says that when a guest paid in full in 2025 for a 2026 stay at the old rates, the host should collect the difference at checkout.
The person or business that contracts with the guest registers, collects and files. That can be a hotel, a room reseller, a hosting platform, a real estate agent or a homeowner. Hotel tax filers must first hold a sales tax permit, then file monthly by the 20th. Hosts and agents renting residential dwellings or rooms use Form RI-8478. Hotel tax filers in Newport remit the hotel tax to the city directly.
Worked examples in dollars
A Warwick electronics store. A customer buys a $900 laptop. Tax at 7% is $63, for $963.
A Providence restaurant. A $140 dinner bill pays 7% sales tax ($9.80) and the 1% meals tax ($1.40): $11.20 in tax. The restaurant reports $9.80 on its sales tax return and $1.40 on its meals and beverage return.
A Newport hotel. Two nights at $280 is $560. The hotel collects 7% sales tax ($39.20), the 5% state hotel tax ($28) and the 2% local hotel tax ($11.20): $78.40, or 14%. As a Newport filer, it pays the hotel tax to the city.
A Block Island beach house. A week's rental of a whole house at $3,500 directly from the owner. Tax is 7% ($245), the 5% whole-home tax ($175) and the 2% local hotel tax ($70): $490. The same booking through a platform that collects would have the platform remit instead.
A downtown garage. A shopper parks for three hours for $15. Since October 1, 2025, tax at 7% is $1.05. A $200 monthly pass isn't taxed.
A clothing boutique. A $120 sweater is exempt. A $300 coat is taxed on $50 above the reported $250 threshold: $3.50.
Try it — Rhode Island 14% lodging tax on $560
Getting and renewing a sales tax permit
Every person or business making retail sales in Rhode Island needs a permit to make sales at retail before starting business; there's no minimum sales amount. Wholesalers that make no retail sales don't need one. The Division recommends registering through its Taxpayer Portal at taxportal.ri.gov, or you can email the BAR form to the Division.
The permit is free. Rhode Island removed the $10 application, renewal and reinstatement fees for permit periods beginning on or after July 1, 2022; many older guides still show the fee. If you send a check when no fee is due, the Division returns it. Before a permit is issued for a new period, any Rhode Island taxes, penalties or interest you owe must be paid.
Renewal is still mandatory. Permits expire every June 30, and renewal applications are due by February 1. Each location needs its own permit, and a change in ownership or structure, such as a sole proprietorship becoming a corporation, requires a new one.
Resale purchases use the Rhode Island resale certificate, which carries your permit number. It can't be used for supplies you'll use yourself, such as office equipment or fixtures. Our resale certificate guide covers the general rules. Artists, writers and composers with a state exemption certificate should note that certificates issued after July 1, 2025 now expire after four years, and older ones on July 1, 2029.
Before your first Rhode Island sale
0/5Filing, due dates and penalties
Most retailers file monthly, by the 20th of the month after the sales. Report on the accrual basis: sales belong in the month they're made, not when you're paid. If you made no sales, file anyway, showing zero sales and zero tax. If your sales and use tax averaged less than $200 a month over six consecutive months, you can apply for quarterly filing; if approved in writing, returns are due on the last day of July, October, January and April. Individuals who owe use tax on personal purchases can report it on their income tax return instead.
Paying late costs 10% of the tax due, plus interest at the current rate on the underpayment, which the Division's page says is never less than 12%. Keep sales receipts, purchase invoices, register tapes and exemption certificates for at least three years.
Rhode Island's FY2027 budget created a 75-day tax amnesty ending February 15, 2027, for taxes due for periods ending on or before December 31, 2025. Secondary reports say it opens December 3, 2026 and waives penalties while cutting interest by 25%. If you have unfiled returns, watch the Division's announcements.
A practical point for new businesses: because tax is owed on the accrual basis, a month with large invoices but slow-paying customers still produces a full tax bill on the 20th. Keep the collected tax in a separate bank account so it's there on the due date, and reconcile your point-of-sale reports against each return before you file. If you find an error after filing, amend the return for that period through the portal rather than adjusting the next month's figures, so the Division's records match yours.
Rhode Island sales tax calendar (2026)
January 1, 2026
Local hotel tax rises to 2%; 5% whole-home tax begins
20th of every month
Monthly sales, meals and hotel tax returns due
February 1
Annual sales tax permit renewal due
June 30
Current permits expire
December 2026 to February 15, 2027
Tax amnesty window for periods ending by December 31, 2025
Remote sellers and marketplaces
Since July 1, 2018, remote sellers that meet Rhode Island's economic threshold, $100,000 or 200 transactions, must register, collect and remit sales tax. Marketplace facilitators collect on sales they handle for third-party sellers. Rhode Island is a full member of the Streamlined Sales and Use Tax Agreement, so you can register through the Streamlined Sales Tax Registration System and hand collection to a certified service provider. With no local sales taxes, the rate on every delivery is 7%. See our economic nexus guide to compare states.
Common mistakes and how to fix them
Still charging 13% on hotel rooms. The local hotel tax has been 2% since January 1, 2026, so short stays pay 14%.
Charging only the local hotel tax on a whole-home rental. Before 2026, whole homes paid 7% plus 1%. Now they also pay the 5% whole-home tax.
Paying a $10 permit fee. The fee is gone, but the February 1 renewal isn't. Missing it leaves you without a valid permit from July 1.
Forgetting the meals tax account. Restaurants need a separate meals and beverage account and a litter permit, not just a sales tax permit.
Not taxing short-term parking. Lots and garages have charged 7% since October 1, 2025.
What to do next
Register on the Taxpayer Portal for your free permit, add meals and hotel tax accounts if you need them, and set reminders for the 20th of each month and February 1. Check that your booking system charges 14% on stays of 30 days or less. Use the sales tax calculator to check receipts at 7%, 8% or 14%, and our guide to calculating sales tax for tax-included prices. Running a vacation rental? Read our short-term rental business guide. Selling across the border? Compare Massachusetts and Connecticut.
This is general information, not legal or tax advice — confirm on the official source or with a professional.
Frequently asked questions
The rate is 7% statewide, and the use tax rate is the same. Rhode Island has no county or city sales taxes, so the rate is 7% in Providence, Warwick, Newport and every other town. Restaurants add a 1% local meals and beverage tax, and short-term lodging pays hotel taxes on top of the sales tax.
Prepared food and drinks pay the 7% sales tax plus a 1% local meals and beverage tax, for 8% in total. The Division of Taxation collects both, and the local tax is filed on the same schedule as your sales tax, monthly by the 20th or quarterly. It applies to food from any eating or drinking establishment, whether eaten there or taken away.
From January 1, 2026, a hotel room or other room rental of 30 days or less pays 7% sales tax, a 5% state hotel tax and a 2% local hotel tax: 14% in total. Before 2026 the local hotel tax was 1%. Whole-home rentals pay the same 14%, using the new 5% whole-home tax instead of the state hotel tax.
It's free. Rhode Island dropped the old $10 application and renewal fee for permit periods starting on or after July 1, 2022. You still need a permit before you start selling, one for each location, and you must renew it every year: permits expire June 30 and renewals are due by February 1.
Mostly not. Secondary tax guides report that clothing and footwear are exempt up to $250 per item, with tax due only on the amount above that. A $300 coat would be taxed on $50, or $3.50. We couldn't open the Division of Taxation's own page to confirm the current figure, so check it before relying on it.
Monthly returns and payment are due by the 20th of the following month. If your sales and use tax averaged less than $200 a month over six consecutive months, you can apply to file quarterly, with returns due the last day of July, October, January and April. Hotel tax returns are always monthly, due by the 20th.
Yes, once they pass $100,000 or 200 transactions into Rhode Island. Marketplace facilitators collect on sales they handle for third-party sellers. Rhode Island is a full member of the Streamlined Sales Tax Agreement, so remote sellers can register through the Streamlined registration system and use a certified service provider.
Sources & verification
Figures on this page were checked against the sources below when it was last reviewed on 11 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify
- 1.Sales & Use Tax (Internet Archive capture of October 9, 2026) — Rhode Island Division of Taxation · accessed 11 October 2026
- 2.Meals and Beverage Tax (Internet Archive capture of April 16, 2026) — Rhode Island Division of Taxation · accessed 11 October 2026
- 3.Hotel Tax (Internet Archive capture of June 8, 2026) — Rhode Island Division of Taxation · accessed 11 October 2026
- 4.Advisory 2025-16: Changes to the taxation of short-term rentals — Rhode Island Division of Taxation · accessed 11 October 2026
- 5.2025 Summary of Legislative Changes — Rhode Island Division of Taxation · accessed 11 October 2026
- 6.Advisory 2022-05: No fee for sales tax permit — Rhode Island Division of Taxation · accessed 11 October 2026
- 7.Non-Collecting Retailers (Internet Archive capture of May 16, 2026) — Rhode Island Division of Taxation · accessed 11 October 2026
- 8.Rhode Island Sales Tax Guide (2026) — Kintsugi (secondary) · accessed 11 October 2026
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