Rhode Island doesn't collect sales tax on purchases of most clothing, prescription drugs and groceries. Prepared Food is subject to special sales tax rates under Rhode Island law. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate.

Some items may not be eligible for these reduced sales tax rates, such as expensive clothing, unhealthy food or drinks like soda, and certain non-essential pharmaceuticals. Rhode Island does not treat candy or soda as groceries, which means they are not subject to reduced grocery sales tax rates. Other items including gasoline, alcohol, and cigarettes are subject to various Rhode Island excise taxes in addition to the sales tax.

In some states, items like alcohol and prepared food (including restaurant meals and some premade supermarket items) are charged at a higher sales tax rate. Prepared Food is subject to a higher state sales tax then other items. The RI sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. Rhode Island's sales tax rates for commonly exempted items are as follows:

$100 Restaurant Dinner	$100 of groceries	$100 in clothes	$100 of consumer products
$8.00 sales tax $108.00 total	$0.00 sales tax $100.00 total	$0.00 sales tax $100.00 total	$7.00 sales tax $107.00 total

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Rhode Island Sales Tax Exemption Certificate

Unlike a Value Added Tax (VAT), the Rhode Island sales tax only applies to end consumers of the product. Individuals and companies who are purchasing goods for resale, improvement, or as raw materials can use a Rhode Island Sales Tax Exemption Form to buy these goods tax-free.

Companies or individuals who wish to make a qualifying purchase tax-free must have a Rhode Island state sales tax exemption certificate, which can be obtained from the Rhode Island Division of Taxation . On making an exempt purchase, Exemption Certificate holders may submit a completed Rhode Island Sales Tax Exemption Form to the vendor instead of paying sales tax.

Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full Rhode Island sales tax code) can be downloaded from the Rhode Island Division of Taxation here .

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Rhode Island Sales Tax Calculator

Purchase Details:

$ in zip code Enter the zip code where the purchase was made for local sales tax

Whenever you make a purchase at a licensed Rhode Island retailer, your sales tax will be automatically calculated and added to your bill. To lookup the sales tax due on any purchase, use our Rhode Island sales tax calculator.

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Rhode Island Use Tax [View Main Article]

If you buy goods and are not charged the Rhode Island Sales Tax by the retailer, such as with online and out-of-state purchases, you are supposed to pay the 7% sales tax (less any foreign sales tax paid) for these items yourself as the Rhode Island Use Tax.

Your are expected to voluntarily list your liable purchases on a Rhode Island Use Tax Return, which should be attached with payment to your Rhode Island Income Tax Return. Historically, compliance rates with with the Rhode Island Use Tax have been low.

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Rhode Island Local Sales Taxes

Rhode Island does not allow local jurisdictions like cities or counties to collect a local sales tax. The Rhode Island state sales tax of 7% is applicable statewide. You can view the sales tax rates for various cities in Rhode Island here.

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