Rhode Island Statewide Rule

Rhode Island Short-Term Rental Hotel and Sales Tax

Heavy RestrictionsApplies statewide across Rhode Island (2026)

Rhode Island imposes statewide 7% sales tax, 5% statewide hotel tax, and 1% local hotel tax on all short-term rentals. Tax collection is preempted at the state level through the Division of Taxation.

Key Facts

Sales tax: 7%
State hotel tax: 5%
Local hotel tax: 1%
Combined rate: 13% minimum
Statute: RIGL 44-18-36.1

Source: Rhode Island General Assembly

Full Breakdown

Under RIGL Title 44 Chapter 18 and Chapter 44-18-36.1, all short-term rentals (less than 30 days) are subject to a combined 13% in state-administered taxes: 7% state sales and use tax, 5% statewide hotel tax, and 1% local hotel tax. An additional 1% may apply in certain districts. Hosting platforms that facilitate booking are required to collect and remit these taxes directly to the Division of Taxation. Owners renting independently must register with Taxation, file returns, and remit taxes. Municipalities cannot impose additional occupancy taxes beyond the state framework.

Violations & Penalties

Unpaid taxes accrue interest and penalties up to 25%, plus possible criminal charges for willful failure to remit collected tax under RIGL 44-19-37.

Frequently Asked Questions

Does Airbnb collect Rhode Island taxes for me?

Yes. Hosting platforms must collect and remit the full combined 13% to the Division of Taxation. Hosts using only platforms generally do not need to file separately.

Can my city add a separate occupancy tax?

No. Lodging taxation is preempted by state law. Municipalities receive a share of the 1% local hotel tax through state distribution but cannot impose additional taxes.

Sources

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Full Breakdown

Frequently Asked Questions

Does Airbnb collect Rhode Island taxes for me?

Yes. Hosting platforms must collect and remit the full combined 13% to the Division of Taxation. Hosts using only platforms generally do not need to file separately.

Can my city add a separate occupancy tax?

No. Lodging taxation is preempted by state law. Municipalities receive a share of the 1% local hotel tax through state distribution but cannot impose additional taxes.