Sales Tax

*Attention* Important Information Regarding Sales Tax Payments*

Sales tax must be paid at the DMV at the time of registration and/or titling of your vehicle. Sales tax can also be paid prior to registration and/or titling at the Rhode Island Division of Taxation.

Customers are required to remit sales tax payments to the State in a timely manner. If sales tax is not paid by the 20^th of the month following the month in which the sale took place, you may incur additional cost because of interest and penalty charges added to your base sales tax bill. For example, if your bill of sale is dated July 26, 2020, your sales tax would be due on August 20, 2020. If it is not paid on or before that date, interest and penalty charges would accrue.

Sales tax can also be paid prior to registration and/or titling at the Rhode Island Division of Taxation. If you are not able to visit the DMV in a timely manner to get your vehicle registered and remit sales tax to DMV prior to the tax due date, you may contact the Division of Taxation excise tax section to pay your sales tax directly before the tax due date to avoid the assessment of penalties and interest. Excise tax section can be reached at 401-574-8955 or via email tax.excise@tax.ri.gov.

Insurance Proceed Letters are no longer accepted by the Division of Taxation due to a change in legislation. For additional information please refer to Insurance Bulletin Number 2011-04.

Insurance Bulletin Number 2011-4 PDF file, less than 1

Dealer

New or used vehicles, sales tax is 7% of the purchase price, minus trade-in and other allowances. This applies to passenger vehicles and motor homes only. All other vehicles are excluded from the trade-in allowance.
To avoid a late charges sales tax must be paid by the 20th of the month following the month of purchase - even if vehicle is not registered.

Private Party

Vehicle 7 years old or less, sales tax is 7% of NADA Clean Retail book value or sale price, whichever is greater.
Vehicles between 8 and 29 years old are taxed 7% of the sale price, provided the vehicle is not on the CPI list.
To avoid a late charges sales tax must be paid by the 20th of the month following the month of purchase - even if vehicle is not registered.

Cars of Particular Interest (CPI)

Dealer: New or used vehicles, sales tax is 7% of the purchase price, minus trade-in and other allowances. This applies to passenger vehicles and motor homes only. All other vehicles are excluded from the trade-in allowance.
Private Party: Sales tax is 7% of NADA Clean Retail book value and/or Black Book CPI or purchase price, whichever is greater.

Cars of Particular Interest (CPI) PDF file, less than 1

Vehicles 30 Years and Older

Dealer: Sales tax is 7% of the purchase price
Private Party: Sales tax is 7% of NADA Clean Retail book value or CPI Book value or purchase price, whichever is greater.
Any vehicles on CPI list on private sale will be based on Book Value or Purchase Price, whichever is higher.
Sales tax is 7% of the purchase price.
Cars of Particular Interests (CPI)

Form 2290

Heavy Highway Vehicle Use Tax Schedule 1 Guidance for State Vehicle Licensing Offices PDF file, less than 1

Filing Requirements When Registering a Heavy Highway Vehicle Within 60 Days of Purchase PDF file, less than 1

Gifted Vehicles

Immediate Family: No sales tax on the vehicle unless outstanding taxes are due. A signed letter of gift is required to exempt you from the sales tax. Immediate family members for purposes of taxation are: parent, step-parent, sibling, step-sibling, spouse, child or step-child.
Non-Immediate Family: No sales tax on the vehicle unless outstanding taxes are due. A signed and notarized letter of gift and gift affidavit is required to exempt you from the sales tax.

Affidavit of Gift of Motor Vehicle (SU 87-65) PDF file, less than 1