Rhode Island tax guide: sales, income and property tax
Three taxes decide most everyday money calculations in Rhode Island: what you pay at the register, what leaves your paycheck, and what your home costs each year. This guide sets out each one with the current figures, then links to the calculators that apply them. Rates are reviewed against state sources; confirm a specific transaction with the Rhode Island Department of Revenue.
The short answer
Rhode Island: 7% state sales tax, about 7% average combined (rank 27 of 51 — 0.39 points above the 6.61% all-state average), a progressive income tax, and an average effective property tax of 1.4% (rank 15 of 51). On a $100 purchase at the average combined rate, the tax is $7.
Sales tax in Rhode Island
The statewide base rate is 7%. Counties, cities and special districts add their own layers, bringing the average combined rate to about 7% — and the rate at a specific address can sit well above or below that average. On a $100 purchase, the tax is $7 at the base rate and roughly $7 at the average combined rate. The difference is local tax, which is why two towns in the same state can charge noticeably different totals on the same item.
Groceries are generally exempt from the state sales tax; local rules can differ.
Worked examples at the average combined rate
What the 7% average combined rate adds to purchases of different sizes:
| Purchase | Tax | Total |
|---|---|---|
| $25 | $2 | $27 |
| $100 | $7 | $107 |
| $500 | $35 | $535 |
| $1,000 | $70 | $1,070 |
| $10,000 | $700 | $10,700 |
If you sell into Rhode Island from another state, economic nexus rules can oblige you to collect its tax once your sales pass the state's threshold — the exact threshold and what counts toward it are in the Rhode Island sales tax calculator and rate page, and the data hub for the state is the Rhode Island locations page.
Income tax in Rhode Island
Rhode Island taxes income progressively, in brackets, like the federal system. Progressive, top rate 5.99%. Because brackets tax slices of income at rising rates, your effective state rate is always below your top (marginal) rate.
Federal tax applies the same everywhere; the state layer is what changes a paycheck between two states. Run the same salary through the paycheck calculator and the take-home pay calculator with and without a state rate to see the size of the difference before negotiating a move or a remote-work arrangement.
Property tax in Rhode Island
The average effective property tax rate in Rhode Island is about 1.4% of a home's value per year. On a $400,000 home that is roughly $5,600 a year, or $467 a month — a real line in the housing budget, collected through escrow in most mortgages. Averages hide wide local variation: the county and school district set most of the rate, and homestead exemptions can cut the taxable value for owner-occupiers.
How Rhode Island compares
The states closest to Rhode Island on average combined sales tax, with the national extremes for scale. The all-state averages across the 51 entries are 6.61% for combined sales tax and 1.04% for property tax.
| State | Combined sales tax | Property tax |
|---|---|---|
| Rhode Island (this guide) | 7% | 1.4% |
| Florida | 7.02% | 0.89% |
| Indiana | 7% | 0.84% |
| Nebraska | 7% | 1.63% |
| North Carolina | 7% | 0.7% |
| Louisiana — highest combined | 9.56% | 0.55% |
| Oregon — lowest combined | 0% | 0.82% |
What this means for your money
Property tax in Rhode Island sits near the middle nationally: an average effective rate of 1.4% (rank 15 of 51; all-state average 1.04%). On a $400,000 home that is about $5,600 a year, or $466.67 a month through escrow. No single tax dominates the picture here — the state's overall position is the sum of three middling taxes rather than one extreme one.
Read together: Rhode Island combines an average combined sales tax of 7% (rank 27 of 51), an average effective property tax of 1.4% (rank 15 of 51) and progressive income tax brackets. A household comparing states should compare all three against its own pattern — a high earner who rents weighs the income tax most; a homeowner on a fixed income weighs the property tax most.
Key figures
| Figure | Rhode Island |
|---|---|
| State sales tax (base) | 7% |
| Average combined sales tax | 7% |
| Groceries | Exempt (state level) |
| Income tax structure | Progressive brackets |
| Average effective property tax | 1.4% |
| Capital | Providence |
| Largest city | Providence |
Sales tax · average combined
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
Rhode Island tax FAQs
What is the sales tax rate in Rhode Island?
The statewide base rate in Rhode Island is 7%. With local taxes added, the average combined rate is about 7%, and the exact rate depends on where the sale takes place.
Does Rhode Island have a state income tax?
Yes. Progressive, top rate 5.99%.
Are groceries taxed in Rhode Island?
Groceries are generally exempt from the state sales tax; local rules can differ.
How does Rhode Island rank for sales tax nationally?
Rhode Island's average combined rate of 7% ranks 27 of 51 states and DC (1 = highest) — 0.39 points above the all-state average of 6.61%. The highest average combined rate is Louisiana at 9.56%; the lowest is Oregon at 0%.
How much property tax do you pay in Rhode Island?
The average effective property tax rate in Rhode Island is about 1.4% of a home's value per year — rank 15 of 51, against an all-state average of 1.04%. On a $400,000 home that is roughly $5,600 a year. County assessors set actual bills, and exemptions can reduce them.
Where can I verify Rhode Island tax rates?
The rates in this guide are reviewed averages for planning. For a filing or a specific address, confirm the current rate with the Rhode Island Department of Revenue (sales and income tax) or the county assessor (property tax).
Reviewed by Tahir Shehzad, ACMA · State tax data reviewed November 2026 against official sources — see our Methodology and Editorial Policy. Figures are educational estimates, not tax or financial advice. For a filing decision, confirm with the Rhode Island Department of Revenue.