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|
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:
- 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 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:
- 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.
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.