• Sales tax in the State of Rhode Island must be paid at the time of registration. If you are registering a vehicle that you purchased from a dealer, the sales tax is 7% of the purchase price, minus trade-in and other allowances, such as rebates. This applies to passenger vehicles ONLY. Trucks are excluded from the trade-in allowance.
• If you purchase a vehicle from a private party and the vehicle is seven (7) years old or newer, you will pay sales tax based on 7% of the NADA book value (blue book) of the vehicle or on the purchase price,whichever is higher.
• If you are moving into Rhode Island from another state you will not have to pay any sales tax to register your vehicle, provided you were actually a resident of another state at the time the vehicle was purchased. Fill out a tax-exempt form (T-333-1) along with your paperwork.
• If a vehicle has been given to you as a gift from an immediate family member, you will not have to pay sales tax on the vehicle, as long as the person giving you the vehicle has paid their legal sales tax. A signed and notarized letter of gift is required to exempt you from the sales tax.
• You must pay sales tax on your vehicle even if you do not register the vehicle.
• Sales tax must be paid by the 20th day of the month following the month of purchase. For example:
  • Bill of sale date is February 1st. You have until March 20th to pay your sales tax even if you do not register the vehicle.
  • After that date, interest and penalty on the original tax will begin to accrue.
  • Tax and Title Only in the Title section has more information.

For more information, please contact the Sales Tax desk at the Division of Motor Vehicles - (401) 462-5809