Providence guests pay roughly 13% on hotel rooms: 6% Rhode Island sales, 5% statewide hotel tax, 1% city share, and 1% county share. Short-term rentals pay similar rates after recent state changes.
Rhode Island levies the statewide 5% hotel tax under General Laws 44-18-36.1, layered with 6% sales tax and a 1% local share split between Providence and the county. The Department of Revenue collects, then distributes the local portions to the city and the Providence/Warwick visitor bureau. The combined 13% applies to traditional hotels and, since 2015, to short-term rentals booked through Airbnb-style platforms. Operators must register with the state, even if they list only on a platform that remits taxes.
Operators that fail to register, collect, or remit the 13% combined hotel tax face Department of Revenue assessments, interest, and personal liability for unpaid amounts.
See how Providence's transient occupancy tax rules stack up against other locations.
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