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Rhode Island car sales tax at a glance
| Rhode Island | |
|---|---|
| Tax | sales and use tax |
| State rate | 7% |
| Average with local taxes (2026 (Tax Foundation midyear, July 1)) | 7% |
| Counties and cities add tax | No |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Tax on each monthly payment |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out Rhode Island sales tax on a car
Multiply the taxable price by the rate. In Rhode Island the trade-in comes off first.
A $30,000 car with a $5,000 trade: $25,000 x 7% = $1,750 at the state rate.
7% statewide (R.I. Gen. Laws 44-18-18), no local sales tax.
Trade-ins
The trade-in allowance on an automobile given to the seller is deducted from the sales price (R.I. Gen. Laws 44-18-30(23); 280-RICR-20-70-28.9). The rule covers private passenger automobiles; a traded-in truck does not qualify.
Leasing a car in Rhode Island
Tax on each monthly payment. Rhode Island: the leasing company collects tax on all lease charges, with each periodic payment sourced to where the vehicle is kept; a passenger-car trade-in on a lease is excluded from the tax base (280-RICR-20-70-21.6 and 21.8). The lease calculator uses Rhode Island's method when you pick the state.
Dealer doc fees
No cap found.