UPDATE: Upcoming Tax Changes

The 2025 session of the Rhode Island General Assembly has resulted in many changes to Rhode Island tax statutes. Please note the following:

1) Effective July 1, 2025, the Rhode Island Motor Fuel Tax rate increased to $0.40 per gallon. See Advisory 2025-11.
2) Sales tax on short-term parking services goes into effect October 1, 2025. See Advisory 2025-14 and Notice 2025-06
3) The definition of other tobacco products (OTP) has been expanded to include all products that are derived from tobacco or that contain nicotine, including tobacco-free nicotine pouches. Effective October 1, 2025, these products will be taxed as OTP.
4) Tier 1 and Tier 2 of the Real Estate Conveyance Tax will increase from $2.30 per each $500 of the purchase price to $3.75 per $500, effective October 1, 2025. see Advisory 2025-13 and Notice 2025-05

Further details on the above and other tax changes are available in the 2025 Summary of Legislative Changes, and additional information will be issued as it becomes available.