Rhode Island Short-Term Rental Hotel and Sales Tax

Under R.I. Gen. Laws Section 44-18-36.1, short-term rentals of fewer than 30 days are subject to the 7% state sales and use tax and the 5% statewide hotel tax, collected through the Division of Taxation. Effective January 1, 2026, the local hotel tax increased from 1% to 2%, and a new 5% tax applies to entire-home (whole-dwelling) rentals; a whole-home stay pays the 5% whole-home tax in place of the 5% state hotel tax. Hosting platforms must collect and remit these taxes. Owners renting independently must register with Taxation and file returns.

Unpaid taxes accrue interest and penalties, plus possible criminal charges for willfully failing to remit collected tax under R.I. Gen. Laws Title 44.