State of Rhode Island: Division of Motor Vehicles
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Sales Tax
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 2011-4.
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
- Vehicles 2005 and newer, sales tax is 7% of Nada Clean Retail book value or sale price, whichever is greater.
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 or purchase price, whichever is greater.
- Cars of Particular Interest (CPI)
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 purchase price, whichever is greater.
Vehicles 2005 to 1984 and not on CPI list
- Sales tax is 7% of the purchase price.
- Cars of Particular Interest (CPI)
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 is mother, father, sister, brother, husband, wife, or child.
- Non-Immediate Family: No sales tax on the vehicle unless outstanding taxes are due. A signed and notorized letter of gift is required to exempt you from the sales tax.