Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In Rhode Island, sales tax is a state-level tax imposed on the sale of most goods and certain services. The state sales tax rate is 7%, which is also the total rate because Rhode Island does not allow local jurisdictions like cities or counties to impose an additional sales tax on top of the state rate. This means that the 7% rate is consistent across the entire state. There are some exemptions to this tax, such as prescription drugs and certain medical devices, as well as some items of clothing. Additionally, Rhode Island imposes a use tax on out-of-state purchases brought into the state, which is also set at 7%. This is designed to ensure that Rhode Island businesses are not at a competitive disadvantage with out-of-state sellers who do not collect Rhode Island sales tax.