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Rhode Island Sales Tax for Businesses

SALES TAX RATE                  LOCAL TAXES                       WEBSITE                         TAXLINE

7%                                                 None                                   Division of Taxation

We wrote this guide for online sellers who want to know if they even have to bother with sales tax in Rhode Island, and if so, how best to tackle the sales tax situation in the Ocean State.

After reading this, you’ll know:

  • Do you or don’t you need to collect Rhode Island sales tax?
  • Which customers do you collect from?
  • How much do you collect?
  • What do you do with all the sales tax you’ve collected?
  • Way more than you probably ever wanted to know about Rhode Island sales tax!

Do you have sales tax nexus in Rhode Island?

Good news! You generally only have to begin thinking about Rhode Island sales tax if you have sales tax nexus in Rhode Island.

“Sales tax nexus” is just a fancy way of saying “significant presence” in a state.

Rhode Island considers a seller to have sales tax nexus in the state if you have any of the following in the state:

  • An office or place of business
  • An employee, representative, contractor, agent, salesperson, etc. present in the state
  • Goods in a warehouse, sample room, storage room, etc. present in the state
  • Delivery of merchandise to customers in the state in the merchant’s own vehicle(s)
  • Attendance at a tradeshow or craft show
  • Advertising in the state (see more here, p. 2-3)
  • A 3rd party affiliate in the state (due to “ click-through nexus”)

You can click here to read exactly what the Rhode Island Department of Revenue (Rhode Island’s taxing authority) has to say about what constitutes sales tax nexus in Rhode Island (starting on p. 2).

Do you have economic nexus in Rhode Island?

Effective July 15, 2017, Rhode Island considers vendors who make more than $100,000 in sales annually in the state or more than 200 transactions in the state to have economic nexus. This means the state considers these vendors obligated to collect sales tax from buyers in the state. You can read Rhode Island’s economic nexus guidance for sellers here and you can read more about economic nexus in every state here.

A note on Rhode Island’s “notice and report” sales tax law

In 2017, Rhode Island implemented a “notice and report” sales tax law. Under this law, sellers with no nexus in the state are known as “non-collecting retailers,” and non-collecting retailers are required to take several actions if they are not sales tax compliant. This law applies to sellers who meet these requirements:

Makes more than $100,000 in gross sales from Rhode Island buyers in a calendar year OR

Makes more than 200 individual sales to buyers in Rhode Island in a calendar year

Sellers that meet this criteria are required to either a) register for a Rhode Island sales tax permit and collect sales tax from Rhode Island buyers or b) comply with Rhode Island’s rigorous reporting requirements, which can be found at the Rhode Island Department of Revenue website.

For more information on Rhode Island’s notice adn report laws, see the Rhode Island Non-Collecting Retailer FAQ

Is what you’re selling even taxable?

You’ve probably read this far because you realized you have sales tax nexus in Rhode Island. Your next step is to determine if what you’re selling is even taxable.

Services in Rhode Island are generally not taxable, though some are. So if you’re a freelance writer or a plumber, you’re in luck and you don’t have to worry about sales tax. Also, the furnishing of telecommunications service and cable television services is taxable in Rhode Island. And be mindful if the service you provide includes creating or manufacturing a product. In that case you may have to deal with the sales tax on products.

Tangible products are taxable in Rhode Island , with a few exceptions. These exceptions include certain clothing and prescription drugs, among other items.

So if you sell hair care items, then charge sales tax to your Rhode Island customers.

But if you’re an oboe teacher, don’t charge sales tax to your Rhode Island customers.

If you have sales tax nexus in Rhode Island and your products are taxable, your next step is to register for a sales tax permit.

How to Register for a Sales Tax Permit in Rhode Island

Sellers with sales tax nexus in Rhode Island must apply for a Rhode Island sales tax permit.

Don’t skip this step! Many states consider it unlawful to collect sales tax in their name without a permit. Go here for more on how to register for a sales tax permit in Rhode Island.

How to Collect Sales Tax in Rhode Island

So you’ve determined that you have sales tax nexus in Rhode Island and what you’re selling is taxable. And you’re all set and registered for your Rhode Island sales tax permit.

The next step is to determine how much sales tax to collect.

Rhode Island is a destination-based sales tax state. So no matter if you live and run your business in Rhode Island or live outside Rhode Island but have nexus there, you would charge sales tax at the rate of your buyer’s ship-to location.

Fortunately, Rhode Island is one of the few states with no local sales tax rates. That means that you charge 7% sales tax to every buyer in Rhode Island. This goes for sellers who call Rhode Island their home state and sellers who live and operate their businesses in another state, but have Rhode Island sales tax nexus for some reason.

You can look up your local sales tax rate by going to mobile on your mobile device or look up any sales tax rate by zip code by going to with Sales Tax Calculator.

Note: If you operate an eating and/or drinking establishment in Rhode Island, you must collect the 1% Rhode Island meals and beverage tax.

Should you collect sales tax on shipping charges in Rhode Island?

As an online seller, you will most likely need to charge sales tax on shipping charges in Rhode Island.

Read a full explanation of sales tax on shipping in Rhode Island here.

Rank City Population County Total Sales Tax
1 Providence 179,219 Providence 7.000%
2 Warwick 81,579 Kent 7.000%
3 Cranston 81,034 Providence 7.000%
4 Pawtucket 71,427 Providence 7.000%
5 East Providence 47,337 Providence 7.000%
6 Woonsocket 41,406 Providence 7.000%
7 Coventry 34,996 Newport 7.000%
8 Cumberland 34,694 Providence 7.000%
9 North Providence 32,494 Providence 7.000%
10 South Kingstown 30,791 Washington 7.000%
11 Johnston 29,230 Providence 7.000%
12 West Warwick 28,780 Kent 7.000%
13 North Kingstown 26,142 Washington 7.000%
14 Newport 24,779 Middleton 7.000%
15 Westerly 22,651 Misquamicut 7.000%
16 Bristol 22,305 Bristol 7.000%
17 Smithfield 21,774 Providence 7.000%
18 Lincoln 21,709 Providence 7.000%
19 Central Falls 19,347 Providence 7.000%
20 Portsmouth 17,344 Newport 7.000%

When are Rhode Island Sales Tax Returns Due?

When you file and pay Rhode Island sales tax depends on two things: your assigned filing frequency and your state’s due dates.

How often will you file sales tax returns in Rhode Island?

States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.

In Rhode Island, you will generally be required to file and remit sales tax either monthly or quarterly.

Important to note: All Rhode Island sales tax filers are also required to file an annual sales tax reconciliation in January.

How often you are required to file sales tax in Rhode Island follows this general rule:

Average Monthly Tax Liability Filing Frequency
$200.01 and up Monthly
$0 to $200.00 Quarterly
All – Annual reconciliation return for all filers Annual

Rhode Island sales tax returns are generally due the 20th or the final day of the month following the reporting period. If the Rhode Island filing due date falls on a weekend or holiday, sales tax is due the next business day.

2019 Rhode Island Monthly Sales Tax Filing Due Dates

Taxable Period Due Date
January February 20, 2019
February March 20, 2019
March April 22, 2019
April May 20, 2019
May June 20, 2019
June July 22, 2019
July August 20, 2019
August September 20, 2019
September October 21, 2019
October November 20, 2019
November December 20, 2019
December January 21, 2020

2019 Rhode Island Quarterly Sales Tax Filing Due Dates

Taxable Period Due Date
Q1 (Jan-March) April 30, 2019
Q2 (April-June) July 31, 2019
Q3 (July-Sept) October 31, 2019
Q4 (Oct-Dec) January 31, 2020

2019 Rhode Island Annual Sales Tax Reconciliation Due Date

Taxable Period Due Date
2019 January 21, 2020

Click here for more info on Rhode Island sales tax filing due dates.

How to File Sales Tax in Rhode Island

When it comes time to file sales tax in Rhode Island you must do three things:

  1. Calculate how much sales tax you owe
  2. File a sales tax return
  3. Make a payment

We’ll walk you through these steps.

How to Calculate How Much Sales Tax You Owe in Rhode Island

Calculating how much sales tax you should remit to the state of Rhode Island is easy with Rhode Island sales tax report.

All you do is connect the channels through which you sell – including Amazon, eBay, Shopify, Square and more – and we’ll calculate exactly how much sales tax you collected. All the information you need to file your Rhode Island sales tax return will be waiting for you.

How to File and Pay Sales Tax in Rhode Island

You have three options for filing and paying your Rhode Island sales tax:

  • File online -“File online at the Rhode Island Division of Taxation.. You can remit your payment through their online system.
  • File by mail -“ You can use the Rhode Island Streamlined Sales Tax Return and file and pay through the mail, though you must file and pay online if your tax liability in the previous year was $200 or more.
  • AutoFile -“ Let us file your sales tax for you. We take care of the payments, too. You’ll never have to worry about spreadsheets, calculations or filling out complex sales tax returns.

Other Facts You Should Know about Rhode Island Sales Tax Filing

There are a few more things you should know about sales tax in Rhode Island:

Penalties:

  • Late Filing Penalty -“ 10% of tax due
  • Late Payment Penalty -“ 10% of tax due

Other penalties for fraud or serial offenses include higher penalties and even criminal charges.

“Zero returns”:

Rhode Island requires that any seller with a sales tax permit file a sales tax return on your due date even if you don’t have any sales tax to report or pay. Click here for a list of states that require zero sales tax returns.

And that’s it. You’ve mastered Rhode Island sales tax filing! Now that sales tax is out of the way, you can get back to what you do best – running your business.

Rhode Island Sales Tax Resources

For more about Rhode Island sales tax, check out the Rhode Island section of the blog.

New York Sales Tax for Businesses

SALES TAX RATE                      LOCAL TAXES                                    WEBSITE                   TAXLINE

6%                                             None                             Department of Treasury

 

We wrote this guide for online sellers who want to know if they even have to bother with sales tax in New York, and if so, how best to tackle the sales tax situation in the Empire State.

After reading this, you’ll know:

  • Do you or don’t you need to collect New York sales tax?
  • Which customers do you collect from?
  • How much do you collect?
  • What do you do with all the sales tax you’ve collected?
  • Way more than you probably ever wanted to know about New York sales tax

Schedule time with a sales tax automation expert to look at your specific sales tax needs.

Connect with an expert

Do you Have Sales Tax Nexus in New York?

Good news! You only have to begin thinking about New York sales tax if you have sales tax nexusin New York.

“Sales tax nexus” is just a fancy way of saying “significant presence” in a state.

New York considers a seller to have sales tax nexus in the state if you have any of the following in the state:

  • An office or place of business
  • If employees are located in the state
  • Goods in a warehouse
  • Ownership of real or personal property
  • Delivery of merchandise in New York in vehicles owned by the taxpayer
  • Independent contractors or other representatives in New York

You can click here to read exactly what the New York Department of Taxation and Finance (New York’s taxing authority) has to say about what constitutes sales tax nexus in New York.

Do you have sales tax nexus in New York if you sell on FBA?

Storing products in a warehouse (such as due to selling on FBA) does not create sales tax nexus in New York. Storing physical products in a state can create sales tax nexus, and New York has two Amazon Fulfillment Centers.

Read here for more about Amazon FBA and sales tax nexus. Here’s a list of all Amazon Fulfillment Centers in the country.

Do you have economic nexus in New York?

In January 2019 New York provided guidance that vendors who make more than $300,000 per year in gross revenue and make sales into New York in more than 100 separate transactions in the last 4 quarters have economic nexus. This means the state considers these vendors obligated to collect sales tax from buyers in the state. You can read New York’s economic nexus guidance for sellers here and you can read more about economic nexus in every state here.

Is What You’re Selling Even Taxable?

You’ve probably read this far because you realized you have sales tax nexus in New York. Your next step is to determine if what you’re selling is even taxable.

Certain services in New York are considered taxable. If your business includes performing repair and maintenance services to real property, you are required to register for sales tax. This includes services such as: lawn mowing, interior or exterior painting of an existing house or structure, snow removal services, plumbing repairs, electrical repairs, and swimming pool maintenance.

Tangible products are taxable in New York, with a few exceptions. These exceptions include certain groceries and food items, over-the-counter and prescription medicine, family planning products, medical devices, and certain clothing and footwear sold for less than $110 per item. Also, tax exempt are medical devices, certain machinery and chemicals used in research and development.

So, if you sell a product like empty jam jars, then charge sales tax to your New York customers. But if you’re an artisanal jam-maker, neither your service, nor your product would be subject to sales tax to your New York customers.

If you have sales tax nexus in New York and your products are taxable, your next step is to register for a sales tax permit.

How to Register for a Sales Tax Permit in New York

Sellers with sales tax nexus in New York must apply for a New York sales tax permit, which in New York is called a Certificate of Authority.

Don’t skip this step! New York considers it unlawful to collect sales tax in their name without a permit. Go here for more on how to register for a sales tax permit in New York.

Schedule time with a sales tax automation expert to look at your specific sales tax needs.

Connect with an expert

How to Collect Sales Tax in New York

So you’ve determined that you have sales tax nexus in New York and what you’re selling is taxable. And you’re all set and registered for your New York sales tax permit(s).

The next step is to determine how much sales tax to collect.

The sales tax rate you collect in New York depends on exactly where in New York your buyer is located.

How to Collect Sales Tax in New York if You are Based in New York

New York is a destination-based sales tax state. So if you live in New York, collecting sales tax can be a bit complicated. You should be charging everyone in your state the rate where the item is being delivered. That could include a combination of state, county, city, and district tax rates.

You can look up your local sales tax rate with Sales Tax Calculator or by going to mobile on your mobile device.

Example: You live and run your business in Schenectady, NY, but sell to a buyer in Buffalo, NY, in the 14201 zip code. The sales tax rate in Buffalo is made up of the 4.0% New York sales tax rate, plus the 4.75% Erie County rate for a total of 8.75%. You would charge each of your New York customers the total sales tax rate for their location.

How to Collect Sales Tax in New York if you are Not Based in New York

New York wants sellers who made a sale into New York from outside the state to charge sales tax based on the destination of the buyer.

Example: You live in Colorado, but have sales tax nexus in New York due to having attended multiple trade shows in the state, over the course of a year. If you make a sale to a buyer in Yonkers, New York (10701 zip code) then you would charge sales tax based on the sales tax rate in the buyer’s location, Yonkers.

Should you collect sales tax on shipping charges in New York?

In New York, if you are selling taxable goods, and charge for shipping as part of an order, then it’s taxable. It doesn’t matter if the shipping charge is part of the price of the item or if it’s listed separately from the price of the item.

If the goods you are selling aren’t taxable, then neither is your shipping.

Read a full explanation of sales tax on shipping in New York here.

Rank City Population County Total Sales Tax
1 New York 2,637,568 New York 8.875%
2 Buffalo 254,004 Erie 8.750%
3 Rochester 207,172 Monroe 8.000%
4 Yonkers 201,687 Westchester 8.875%
5 Syracuse 142,028 Onondaga 8.000%
6 Albany 97,797 Albany 8.000%
7 New Rochelle 79,531 Westchester 8.375%
8 Mount Vernon 68,256 Westchester 8.375%
9 Schenectady 63,995 Schenectady 8.000%
10 Utica 59,956 Oneida 8.750%
11 White Plains 58,227 Nassau 8.625%
12 Hempstead 55,509 Nassau 8.625%
13 Troy 49,360 Renesselaer 8.000%
14 Niagara Falls 48,120 Niagara 8.000%
15 Binghamton 44,900 Broome 8.000%
16 Freeport 43,289 Nassau 8.625%
17 Valley Stream 37,593 Nassau 8.625%
18 Long Beach 33,739 Nassau 8.625%
19 Spring Valley 32,571 Rockland 8.375%
20 Rome 32,219 Oneida 8.750%

When are New York Sales Tax Returns Due?

When you file and pay New York sales tax depends on two things: your assigned filing frequency and your state’s due dates.

How often will you file sales tax returns in New York?

States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.

In New York, you will generally be required to file and remit sales tax either monthly, quarterly or annually.

How often you are required to file sales tax in New York follows this general rule:

Average Monthly Taxable Sales Filing Frequency
$1,000 to $99,999.99 Quarterly
$100,000.00 and up Monthly
$0 to $999.99 Annual

New York sales tax returns are generally due the 20th or the final day of the month following the reporting period. If the New York filing due date falls on a weekend or holiday, sales tax is due the next business day.

2019 New York Monthly Sales Tax Filing Due Dates

Taxable Period Due Date
January February 20, 2019
February March 20, 2019
March April 22, 2019
April May 20, 2019
May June 20, 2019
June July 22, 2019
July August 20, 2019
August September 20, 2019
September October 21, 2019
October November 20, 2019
November December 20, 2019
December January 21, 2020

2019 New York Quarterly Sales Tax Filing Due Dates

Taxable Period Due Date
Q4 2018 (Dec-Feb) March 20, 2019
Q1 (March-May) June 20, 2019
Q2 (June-Aug) September 20, 2019
Q3 (Sept-Nov) December 20, 2019
Q4 2019 (Dec-Feb) March 20, 2020

2019 New York Annual Sales Tax Filing Due Dates

Taxable Period Due Date
Mar 1 2018-Feb 28, 2019 March 20, 2019
Mar 1 2019-Feb 29, 2020 March 20, 2020

Click here for more info on New York sales tax filing due dates.

How to File Sales Tax in New York

When it comes time to file sales tax in New York you must do three things:

Calculate how much sales tax you owe

File a sales tax return

Make a payment

We’ll walk you through these steps.

How to Calculate How Much Sales Tax You Owe in New York

Calculating how much sales tax you should remit to the state of New York is easy with New York sales tax report.

All you do is connect the channels through which you sell – including Amazon, eBay, Shopify, Square and more – and we’ll calculate exactly how much sales tax you collected. All the information you need to file your New York sales tax return will be waiting for you in. All you have to do is login!

How to File and Pay Sales Tax in New York

The state of New York requires you to do all sales tax filing and payment remittance online. You can do one of two things:

File online at the New York Department of Taxation and Finance. You must also remit your payment through their online system.

AutoFile – Let us file your sales tax for you. We take care of the payments, too. You’ll never have to worry about spreadsheets, calculations or filling out complex sales tax returns.

Other Facts You Should Know about New York Sales Tax Filing

There are a few more things you should know about sales tax in New York:

Penalties:

Late Filing Penalty – The minimum penalty is $50, and interest at a rate that increases as time passes. Further information can be found, here.

Other penalties for fraud or serial offenses include higher penalties and even criminal charges and imprisonment.

“Zero returns”:

New York requires that any seller with a sales tax permit file a sales tax return on your due date even if you don’t have any sales tax to report or pay, at minimum, a late penalty of $50.

Discounts:

Many states understand that collecting sales tax is a difficult burden on merchants, and will provide a discount to help alleviate some of this burden. In New York, as long as the sales tax is paid on time, a discount is available equal to 5% of sales tax due and is not to exceed $200 per quarter, or longer period.

And that’s it. You’ve mastered New York sales tax filing! Now that sales tax is out of the way, you can get back to what you do best – running your business.