On this page we are describing the sales taxes in the State of Rhode Island, we aim to educate you on the differences that occur throughout the state so you get a better understanding of it in regards to whether you may have:

  • Have taken a Rhode Island job in the are
  • Applied for a Rhode Island school
  • Opened a Rhode Island bank account in the state of Rhode Island
  • People who may be unable to find their Social Security Card or have lost it.

What is the lowest and highest sales tax in Rhode Island?

In the map of Rhode Island is pictured below there are a total of 5 countries that are within the state. You can go directly to the page and see which area has the highest and lowest sales tax in your county of choice.

Bristol Kent Newport Providence Washington
The state sales tax for businesses and so forth is a standard rate of 7% which allows the local government to be able to collect up to another 0% on top of this:

  • the average sales tax for the entirety of Rhode Island is 7%,
  • In all counties and cities the sales tax rates is equal and this equates to 7% sales tax,
  • This is a brief overview, and we suggest that you go directly to the page if you wish to get a clearer image of the different ranges of sale tax in a particular county. Please note that the ones that have an asterisk means they are below the usual county level of sales tax.

    How to calculate your own sales tax in the state of Rhode Island.

    So, what does this mean for you, if you are looking into how much sales tax you are going to charged dependant on what sort of county you are residing or working out of. You can go ahead and use a sales tax calculator which will give you a section that is exampled below.

     

    $
    -or- Specify Sales Tax Rate
    -or- Specify ZIP Code
    %

     

    You do need to know the purchase ZIP code and purchase amount in order to get an accurate figure. For an example we will use the amount of $500 and see what the ranges could be from the city with the highest population.

    In Providence, SC with the sales tax of 7% would mean that your $500 purchase would incur a $35 sales tax, taking the total amount to $535.

    The sales tax calculator makes it as easy as it can be to find out what sort of sales tax you will be charged by simply adding the amount and the ZIP code. Though there might be some purchases that are exempt from sales taxes or have some special leniency which do need to be taken into consideration.

    City Sales Tax Rate Zip-code Population
    Providence 7.00% 2901, 2902, 2903, 2905, 2906, 2907, 2908, 2909, 2912, 2918, 2940 116206
    Warwick 7.00% 2886, 2887, 2888, 2889 67227
    Cranston 7.00% 2910, 2920, 2921 57515
    Pawtucket 7.00% 2860, 2861, 2862 55375
    Woonsocket 7.00% 2895 30278
    Cumberland 7.00% 2864 29895
    Coventry 7.00% 2816 27787
    West Warwick 7.00% 2893 24077
    Johnston 7.00% 2919 23966
    North Kingstown 7.00% 2852 20118
    Westerly 7.00% 2891 18883
    Wakefield 7.00% 2879, 2880 17907
    East Providence 7.00% 2914 17218
    Newport 7.00% 2840, 2841 17022
    Bristol 7.00% 2809 16829
    East Greenwich 7.00% 2818 16723
    Portsmouth 7.00% 2871 15498
    Lincoln 7.00% 2865 15355
    Barrington 7.00% 2806 15163
    Riverside 7.00% 2915 14348
    Tiverton 7.00% 2878 13961
    Middletown 7.00% 2842 13797
    Central Falls 7.00% 2863 12807
    North Providence 7.00% 2911 12324
    Narragansett 7.00% 2882 10236
    Smithfield 7.00% 2917 10133
    Warren 7.00% 2885 8830
    North Smithfield 7.00% 2896 8477
    North Scituate 7.00% 2857 7729
    Rumford 7.00% 2916 7268
    Charlestown 7.00% 2813 6822
    Chepachet 7.00% 2814 6606
    Greenville 7.00% 2828 6569
    West Greenwich 7.00% 2817 5436
    Harrisville 7.00% 2830 5420
    Pascoag 7.00% 2859 5307
    Saunderstown 7.00% 2874 5257
    Exeter 7.00% 2822 5183
    Jamestown 7.00% 2835 5079
    Foster 7.00% 2825 4719
    West Kingston 7.00% 2892 4536
    Hope Valley 7.00% 2832 4094
    Hope 7.00% 2831 3532
    Little Compton 7.00% 2837 3047
    Manville 7.00% 2838 2736
    Ashaway 7.00% 2804 2518
    Bradford 7.00% 2808 2043
    Kingston 7.00% 2881 2040
    Greene 7.00% 2827 2027
    Wyoming 7.00% 2898 1900

    Why do I need to collect sales tax in Rhode Island?

    You will need to collect sales tax if you have any sort of nexus there, and what this means is that if you have assets that are physical or economic then you need to do this.

    Physical meaning having a tangible activity or some sort of presence in any of the states of Rhode Island, economic nexus is simply passing the states’ economic threshold for total revenue, or the maximum number of transactions that can occur in the period of time within the state.

    Two easy ways to see if you have either a physical or economic nexus in any of the counties is the following:
    Physical:

    • Tangible personal property
    • Business assets or property
    • Own, renting properties
    • Made more than $500,000 in a service or content delivery in the state

    Economic:

    • Made more than $100,000 in sales annually
    • More than 200 transactions in the last calendar year

    How do I get a sales tax permit?

    The main way to go about this is to register online at the Rhode Island Business Gateway. Follow the steps that are presented to you and ensure that you have the following to hand to use as information:

    • Business identification information
    • Business entity
    • Location/s that you will be conducting this from
    • Date you will start collecting Rhode Island sales tax from a business/property
    • NAICS Code (North American Industry Classification System.)

    What is the best way to file sales taxes?

    Before you think of doing anything else there are three things that we recommend that you do in order to make this process as easy and smooth as possible.

    First of all, find out how much tax you owe (remember the sales tax calculator we mentioned before) so that you know how much you need to pay the state at the end. Second is get onto the Rhode Island Department Of Taxation ready to submit them, and third have the money ready so you can make the payment straight away.

    There are two main options as well to filing and paying your Rhode Island sales tax, these are:

    • Filing online. This is where merchants are required to file all of their sales taxes through the department of taxation in the state of Rhode Island, you can also pay your taxes on this platform, so it is one to keep close to you for future reference.
    • Filing by mail. Simply fill out the form UST-1, but this is not the recommended way of filing your taxes due to the possibilities of them getting lost in the post and then it could mean that you are subject to late fees if they are not filed within the allotted time.

    We hope this document was able to allow you to feel more confident when it comes to sales tax in the state of Rhode Island depending on where you operate out of.