Short-Term Rental Tax in Rhode Island (RI)
The state-level tax rate on short-term rentals in Rhode Island is 12.0% , consisting of 7.0% sales tax and 5.0% lodging tax. Rhode Island applies general sales and lodging taxes to STRs without STR-specific legislation. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Newport reaches 18.0%. STR operators must register with the state. Rhode Island charges a 7% sales tax and a 5% state hotel tax on short-term accommodations (less than 30 days). Local hotel taxes of 1-6% may also apply. STR operators must register with RI Division of Taxation.
Annual Tax Estimate for Rhode Island
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Newport).
| Nightly Rate | Gross Revenue | State Tax (12.0%) | Newport Tax (18.0%) |
|---|---|---|---|
| $100.00/night | $23,700 | $2,844 | $4,266 |
| $150.00/night | $35,550 | $4,266 | $6,399 |
| $200.00/night | $47,400 | $5,688 | $8,532 |
| $300.00/night | $71,100 | $8,532 | $12,798 |
| $500.00/night | $118,500 | $14,220 | $21,330 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in Rhode Island
Local taxes significantly impact the total STR tax burden in Rhode Island. The table below shows combined state + local rates for 4 cities, sorted by total rate. The highest combined rate is 18.0% in Newport.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Newport | 6.0% | 18.0% | $36.00 | Very High | City of Newport 6% local hotel tax. Popular vacation destination. |
| Narragansett | 6.0% | 18.0% | $36.00 | Very High | Town of Narragansett 6% local hotel tax. Beach vacation market. |
| Block Island | 6.0% | 18.0% | $36.00 | Very High | Town of New Shoreham 6% local hotel tax. Very active vacation rental market. |
| Providence | 5.0% | 17.0% | $34.00 | Very High | City of Providence 5% local hotel tax. |
How Rhode Island Compares to Other States
Below is a comparison of Rhode Island with five states that have similar state-level STR tax rates. This comparison helps illustrate where Rhode Island stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| Rhode Island (RI) | 12.0% | 7.0% | 5.0% | Yes | Required |
| West Virginia (WV) | 12.0% | 6.0% | 6.0% | Yes | Required |
| Illinois (IL) | 12.3% | 6.3% | 6.0% | Yes | Required |
| Texas (TX) | 12.3% | 6.3% | 6.0% | Yes | Required |
| Massachusetts (MA) | 11.7% | 6.3% | 5.7% | Yes | Required |
| New Jersey (NJ) | 11.6% | 6.6% | 5.0% | Yes | Required |
Frequently Asked Questions About Rhode Island STR Taxes
What is the short-term rental tax rate in Rhode Island in 2026?
The state-level tax rate on short-term rentals in Rhode Island is 12.0%, consisting of 7.0% sales tax and 5.0% lodging tax. Local taxes can bring the total to 18.0% in cities like Newport. At $200/night with 65% occupancy, the state-level tax alone is approximately $5,688 per year.
Does Airbnb collect STR taxes in Rhode Island?
Yes. Airbnb, Vrbo collect state hotel tax. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in Rhode Island?
Yes. Rhode Island requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in Rhode Island also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Newport, Rhode Island?
The total combined tax rate in Newport is 18.0%, which includes the 12.0% state rate plus 6.0% in local taxes. City of Newport 6% local hotel tax. Popular vacation destination. At $200/night with 65% occupancy, this amounts to approximately $8,532 per year in taxes.
How much will I owe in STR taxes in Rhode Island?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (12.0%), a property earning $200/night with 65% occupancy would owe approximately $5,688/year in state taxes alone. In Newport, the total tax at the same rate would be approximately $8,532/year. Use our STR tax calculator for a customized estimate.
Calculate Your Rhode Island STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in Rhode Island. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.