Taxes & Fees: Foster Center vs Providence
How do taxes & fees rules compare between Foster Center, RI and Providence, RI?
Foster Center and Providence have similar restriction levels.
Foster Center, RI
Providence County
Rhode Island imposes multiple taxes on short-term rentals of 30 days or less that apply throughout Providence County: 7% state sales tax, 5% state hotel tax (RIGL 44-18-36.1), and 1% local hotel tax (increasing to 2% on January 1, 2026). A new 5% tax on entire-dwelling STRs takes effect January 1, 2026. Hosting platforms (Airbnb, VRBO) are required to collect and remit these taxes.
View full Foster Center rules →Providence, RI
Providence County
Providence STR operators must collect and remit the Rhode Island state hotel tax (5%), local hotel tax (up to 6%), and the statewide 1% local assessment. The combined rate is approximately 12%.
View full Providence rules →Key Facts Comparison
| Fact | Foster Center | Providence |
|---|---|---|
| State Sales Tax | 7% | - |
| State Hotel Tax | 5% (RIGL 44-18-36.1) | - |
| Local Hotel Tax | 1% (2% from Jan 2026) | - |
| New Entire-Dwelling Tax | 5% from Jan 2026 | - |
| 30-Day Exemption | Rentals >30 days exempt | - |
| State Tax | - | 5% Rhode Island hotel tax |
| Local Tax | - | Up to 6% city hotel tax |
| Assessment | - | 1% statewide local assessment |
| Combined | - | Approximately 12% total |
Highlighted rows indicate differences between cities.
Foster Center FAQ
What taxes do I owe on short-term rental income in Providence County?
Rhode Island imposes multiple taxes on short-term rentals of 30 days or less that apply throughout Providence County: 7% state sales tax, 5% state hotel tax (RIGL 44-18-36.1), and 1% local hotel tax (increasing to 2% on January 1, 2026). A new 5% tax on entire-dwelling STRs takes effect January...
How much is the short-term rental license fee in Providence County?
State Sales Tax: 7%. State Hotel Tax: 5% (RIGL 44-18-36.1). Local Hotel Tax: 1% (2% from Jan 2026). New Entire-Dwelling Tax: 5% from Jan 2026.
Providence FAQ
What taxes do STR operators pay in Providence?
The combined hotel tax rate is approximately 12%, including the 5% state hotel tax, up to 6% local tax, and a 1% statewide assessment. Airbnb may collect the state portion automatically.
Does Airbnb collect all the taxes in Providence?
Airbnb collects Rhode Island state hotel tax and the statewide assessment automatically. Operators should verify whether local Providence tax is collected by the platform or must be remitted directly.
What if I don't collect STR taxes in Providence?
Failure to collect required hotel taxes results in personal liability for the operator plus interest and penalties. The Rhode Island Division of Taxation audits STR operators.
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