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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.
  • 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

  • Vehicles 2006 and newer, sales tax is 7% of Nada Clean Retail book value or sale price, whichever is greater.
  • 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 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 and not on CPI list

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.