What you pay in tax when you buy a vehicle in Rhode Island, from the statute and the revenue department.
Verified September 21, 2026 · statute and revenue department cross-checked
The statute and the actual bill do not match. The body of the statute still reads six percent. Subsection (h) raised it to 7 percent back in 1990, and that is what is collected.
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Buying the car is only half the cost. You still owe an annual registration fee.
Trade-in credit applies only to passenger cars, motorcycles and motor homes. Trade in a truck or an SUV registered as commercial and you get nothing. In a private sale of a vehicle seven years old or newer, the tax is on the greater of the price or NADA clean retail value. No local sales tax.
R.I. Gen. Laws § 44-18-20 “The use tax imposed under this section for the period commencing July 1, 1990, is at the rate of seven percent (7%).”
Rhode Island DMV, Sales Tax “Dealer: New or used vehicles, sales tax is 7% of the purchase price, minus trade-in and other allowances. This applies to passenger vehicles, motorcycles, and motor homes only. All other vehicles are excluded from the trade-in allowance. ... Private Party: Vehicle 7 years old or less, sales tax is 7% of NADA Clean Retail book value or sale price, whichever is greater.”
Last verified: September 21, 2026.
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Estimates only. Your dealer or the state issues the final bill, and exemptions can change what you owe. This page does not collect or store anything you enter.