Rhode Island will increase its real estate conveyance tax rate from USD 2.30 to USD 3.75 per USD 500 for property sales exceeding USD 100, effective 1 October 2025.
The Rhode Island Department of Revenue has published ADV 2025-13 on 21 August 2025, announcing that it will increase its real estate conveyance tax rates from USD 2.30 to USD 3.75 per USD 500 for property sales exceeding USD 100, effective from 1 October 2025.
The real estate conveyance tax is a tax on the purchase of real estate or the interest in an acquired real estate company.
The tax is calculated using two tiers. The first tier (Tier 1) is the rate that applies to the entire consideration paid for every property conveyed. That rate is currently USD 2.30 per each USD 500, or fractional part thereof. As of 1 October 2025, the Tier 1 rate will increase from USD 2.30 to USD 3.75. A property for which the total consideration is paid is USD 800,000 or under would be subject to only the Tier 1 rate.
In addition to the Tier 1 rate, a second tier (Tier 2) rate applies when Residential Real Property is conveyed for more than USD 800,000.
Tier 2 applies only to each USD 500 (or fractional part thereof) of consideration paid for the purchase of the residential property over USD 800,000. The Tier 2 rate is imposed in addition to the Tier 1 rate. Like the Tier 1 rate, the Tier 2 rate is currently USD 2.30 per each USD 500 (or fractional part thereof), and as of 1 October 2025, the Tier 2 rate of USD 2.30 will also increase to USD 3.75.
Beginning 1 January 2026, and each year thereafter, the USD 800,000 threshold for the Tier 2 rate will be adjusted for inflation as announced annually by the Division of Taxation.
