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) Sales tax on short-term parking services goes into effect October 1, 2025. See Advisory 2025-14 and Notice 2025-06.
2) The definition of other tobacco products (OTP) has been expanded to include all products that contain nicotine, including tobacco-free nicotine pouches. Effective October 1, 2025, these products will be taxed as OTP. See Notice 2025-07, Notice 2025-08, and ADV 2025-19.
3) 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.
4) An adjustment to the tax rate of RI’s local hotel tax from 1% to 2% and a new 5% tax on the short-term rental of entire residential dwellings will go into effect January 1, 2026. See Advisory 2025-16 and Notice 2025-09.

For information on other recent tax changes, please see the 2025 Summary of Legislative Changes. Additional information on upcoming tax changes will be issued as it becomes available.