Real Estate · Rhode Island
Rhode Island Real Estate Transfer Tax 2026
Rhode Island's conveyance tax increased from $2.30 to $3.75 per $500 on July 1, 2026 — a 63% jump. Here's what it means for buyers and sellers, with a full tax calculator.
Quick answer
What changed and how much will you pay?
Old rate (before July 1)
$2.30
per $500
New rate (July 1, 2026+)
$3.75
per $500
On a $350,000 home
+$1,015
more than last year
The Rhode Island conveyance tax increased 63% effective July 1, 2026. This base rate (Tier 1) applies to all real property transfers statewide and is typically paid by the seller at closing — though this is negotiable. Residential sales above $824,000 owe a second layer on top; see the high-value section below.
How to calculate
Transfer Tax Examples at the 2026 Rate ($3.75 per $500)
Formula: (Sale Price ÷ 500) × $3.75 = Transfer Tax — for sales at or below $824,000
| Sale Price | Old Tax ($2.30) | New Tax ($3.75) | Difference |
|---|---|---|---|
| $200,000 | $920 | $1,500 | +$580 |
| $300,000 | $1,380 | $2,250 | +$870 |
| $350,000 | $1,610 | $2,625 | +$1,015 |
| $450,000 | $2,070 | $3,375 | +$1,305 |
| $600,000 | $2,760 | $4,500 | +$1,740 |
| $850,000 | $4,030 | $6,570 | +$2,540 |
| $1,000,000 | $5,410 | $8,820 | +$3,410 |
Homes over $824,000
The Second Tier Most Calculators Miss
Rhode Island charges a second layer of conveyance tax on residential sales above $824,000. The standard $3.75 per $500 (Tier 1) applies to the entire sale price, and an additional $3.75 per $500 (Tier 2) applies to the portion above the threshold — an effective $7.50 per $500 on everything over $824,000. Tier 2 does not apply to commercial property or vacant land.
Worked example: $1,000,000 sale
Base tax — $1,000,000 ÷ 500 = 2,000 × $3.75 = $7,500
Additional tier — $176,000 above the threshold ÷ 500 = 352 × $3.75 = $1,320
Total conveyance tax: $8,820
A flat (price ÷ 500) × $3.75 calculation understates the bill on any residential sale above $824,000. This threshold changes every year. Since January 1, 2026 it has been indexed annually to CPI-U — it rose from $800,000 to $824,000 for calendar year 2026 and can only move upward. Confirm the current year's threshold and rates at tax.ri.gov before closing.
How RI compares
Rhode Island vs. Neighboring States
Rhode Island
New rate effective July 1, 2026
$3.75 per $500
$2,625 on $350k
Massachusetts
Lower than new RI rate
$4.56 per $1,000 ($2.28/$500)
$1,596 on $350k
Connecticut
Matches new RI baseline rate
$7.50 per $1,000 ($3.75/$500)
$2,625 on $350k
Full picture
Other Closing Costs in Rhode Island
Real Estate Transfer Tax
Paid by: Seller (typically)
$2,625 on $350k home (new rate)
Title Insurance
Paid by: Buyer
$700–$1,500 (varies by price)
Attorney Fees
Paid by: Both parties
$800–$1,500 each
Recording Fees
Paid by: Buyer
$75–$150
Lender Fees
Paid by: Buyer
0.5–1% of loan amount
Home Inspection
Paid by: Buyer
$400–$600
Common questions
Rhode Island Transfer Tax — FAQs
When did Rhode Island's transfer tax increase?
The new rate of $3.75 per $500 took effect July 1, 2026. Any property that closed on or after July 1 is subject to the new rate. Transactions that closed before July 1 used the old $2.30 per $500 rate.
Who pays the real estate transfer tax in Rhode Island — buyer or seller?
By convention, the seller pays the Rhode Island conveyance tax at closing. However, this is negotiable — parties can agree to split it or shift it to the buyer. Your purchase and sale agreement should specify who is responsible.
Is there a first-time homebuyer exemption from the Rhode Island transfer tax?
This has not been confirmed. Verify current exemption status at tax.ri.gov or with a Rhode Island real estate attorney before closing. Do not assume an exemption applies without written confirmation from the Rhode Island Division of Taxation.
How do I calculate Rhode Island transfer tax on my home purchase?
For a sale price at or below $824,000: divide the sale price by 500, then multiply by $3.75. For example: $350,000 ÷ 500 = 700 × $3.75 = $2,625. If the sale price doesn't divide evenly by 500, round up to the next $500 before calculating. For residential sales above $824,000 you must add a second layer — see the high-value question below.
What happens to the transfer tax on homes over $824,000?
Residential sales above $824,000 owe an additional $3.75 per $500 (Tier 2) on the portion of the price above the threshold, on top of the standard $3.75 per $500 (Tier 1) charged on the entire price. That makes the effective rate $7.50 per $500 on everything above $824,000. On a $1,000,000 sale: $7,500 base + $1,320 on the $176,000 above the threshold = $8,820 total. A flat (price ÷ 500) × $3.75 calculation will understate your bill on any residential sale above $824,000.
Is the $824,000 threshold permanent?
No. Starting January 1, 2026, the Tier 2 threshold is adjusted annually for inflation using the Consumer Price Index for All Urban Consumers (CPI-U). The adjustment compounds annually, is rounded up to the nearest $5 increment, and by statute can only move upward. The threshold rose from $800,000 to $824,000 for calendar year 2026. Confirm the current year's threshold at tax.ri.gov before closing.
Does the Rhode Island transfer tax apply to commercial property?
The Tier 1 tax of $3.75 per $500 applies to all real property transfers in Rhode Island, including commercial real estate and vacant land. The Tier 2 tax — the additional $3.75 per $500 above the $824,000 threshold — applies only to residential real property, as classified by the city or town where the property sits. For mixed-use property, Tier 2 applies to the portion of consideration allocated to the residential component. Mobile and manufactured homes are taxed at a separate rate of $1.40 per $500.
Are there any exemptions from the Rhode Island conveyance tax?
Some exemptions exist — including certain transfers between family members and government entities. Verify all exemptions at tax.ri.gov or with a Rhode Island real estate attorney before closing.
Related guides
Verify Before You Close
Confirm Current Rhode Island Tax Rates
Transfer tax rates can change. Always verify the current rate at tax.ri.gov before your closing date.
Visit tax.ri.gov →