Rhode Island Sales & Use Tax 2025

Rhode Island Sales Tax Guide for SaaS and E-Commerce Businesses 2025

2025-09-18

Statewide Sales Tax Rate

Local Option Rate

Economic Nexus

$100,000 or 200 transactions

Is SaaS Taxable?

Yes

Rhode Island sales tax for SaaS & digital products

Rhode Island imposes a 7% sales & use tax on taxable sales. The rate is uniform statewide, Rhode Island does not impose additional local sales taxes. See the Division of Taxation’s overview: Sales & Use Tax.

This guide explains Rhode Island’s treatment of SaaS (vendor-hosted prewritten software), digital products, economic nexus thresholds, marketplace obligations, sourcing, and filing rules, with citations to Rhode Island statutes, regulations, advisories, and declaratory rulings.

Last updated: September 2025

Quick Reference: Rhode Island Sales & Use Tax (2025)

Topic	Details
State base rate	7% (Sales & Use Tax)
Local rates	0%. No local add-ons; the state rate is uniform. (Sales & Use Tax)
Economic nexus	$100,000 in sales or 200 transactions (remote sellers/marketplaces). (Remote Sellers)
SaaS / Cloud	Taxable as “vendor-hosted prewritten computer software” (effective 10/1/2018). (Advisory 2018-38)
Digital goods	E-books, digital music, and digital videos continue to be tax-free. (Advisory 2018-38)
Delivery/Shipping	Taxable when the underlying sale is taxable; allocation required on mixed shipments. (Ruling 2017-01; R.I. Gen. Laws § 44-18.1-23)
Sourcing	Streamlined sourcing rules (destination-based). (Reg. SU 11-25)
Filing due date	The RI-STR return is due on the 20th of the month following the month of sale; quarterly option available for low-volume filers. (Sales & Use Tax; ADV 2025-14)
Registration	Register and file online through the Rhode Island Tax Portal. (Sales & Excise Forms; Rhode Island Tax Portal)

SaaS & Software Taxability in Rhode Island

Rhode Island SaaS sales tax applies to vendor-hosted prewritten computer software (SaaS/IaaS/PaaS) whether or not any downloading occurs.

Statutory definition: R.I. Gen. Laws § 44-18-7.1(g)(vii) defines “vendor-hosted prewritten computer software” as software “accessed through the internet and/or a vendor-hosted server regardless of whether the access is permanent or temporary and regardless of whether any downloading occurs.”
Source: § 44-18-7.1
Taxability effective 10/1/2018: The Division clarified that accessing or using software via the internet (SaaS) is taxable, while e-books, digital videos, and digital music continue to be exempt.
Source: Advisory 2018-38
Declaratory rulings:
- Ruling 2023-02: Charges to Rhode Island customers for access to online courses and software services are taxable.
  Source: Ruling Request 2023-02
- Ruling 2023-01: Confirms statutory treatment and cites §§ 44-18-7 and 44-18-7.1 for vendor-hosted prewritten software as taxable “sales.”
  Source: Ruling Request 2023-01
- Ruling 2025-01: Reiterates the § 44-18-7.1(g)(vii) definition in a recent context.
  Source: Ruling Request 2025-01

Digital Products

Rhode Island’s 2018 advisory confirms that e-books, digital music, and digital videos remain exempt from sales tax, even after SaaS became taxable.
Source: Advisory 2018-38 (see “NOT TAXABLE”)

E-Commerce & Tangible Goods in Rhode Island

Category	Taxable?	Notes / Authority
Tangible personal property	Yes	7% statewide rate; no local add-ons. Sales & Use Tax
Prewritten software (downloaded or load-and-leave)	Yes	Treated as taxable prewritten software. Advisory 2018-38; § 44-18-7.1
SaaS / vendor-hosted prewritten software	Yes	Effective 10/1/2018; taxable whether or not a download occurs. Advisory 2018-38; Ruling 2023-02
E-books, digital music, digital video	No	Exempt per Advisory. Advisory 2018-38
Shipping / delivery / handling	Yes, when the sale is taxable	Included in “sales price”; exempt when the sale is exempt; allocate on mixed shipments. Ruling 2017-01; § 44-18.1-23

Who Must Register and Collect Rhode Island Sales Tax?

You must register and collect if you have:

Physical nexus in Rhode Island (e.g., office, employees, inventory), or
Economic nexus: $100,000 in gross revenue from sales into Rhode Island or 200 or more transactions into Rhode Island (see Remote Sellers page for the specific tests and effective dates).
Source: Remote Sellers

Marketplace facilitators and referrers must comply with the same thresholds and collection requirements.
Source: Remote Sellers

Filing & Due Dates

Register & file: See Sales & Excise Forms (RI-STR and instructions), or file via the Rhode Island Tax Portal.
Sources: Sales & Excise Forms; Form RI-STR (PDF); Rhode Island Tax Portal
Filing frequency: Monthly unless approved to file quarterly; quarterly eligibility depends on average tax due.
Source: Sales & Use Tax
Due date: 20th day of the month following the month of sale (Division confirmations and advisories).
Sources: Sales & Use Tax; ADV 2025-14

How to Register for Rhode Island Sales Tax

Determine nexus (physical or $100,000/200 economic nexus).
- Remote Sellers
Register and obtain a sales permit; renew annually (no fee).
- Sales & Use Tax; Sales & Excise Forms; Rhode Island Tax Portal
Charge the correct rate: 7% statewide (no local add-ons).
- Sales & Use Tax
File returns on your assigned schedule; remit by the 20th.
- ADV 2025-14

FAQs: Rhode Island Sales Tax

Is SaaS taxable in Rhode Island?
Yes. Vendor-hosted prewritten software (SaaS/IaaS/PaaS) is taxable; downloading is not required for tax to apply.
Sources: Advisory 2018-38; § 44-18-7.1(g)(vii); Ruling 2023-02

Are e-books, digital music, and digital video taxed?
No. These specified digital products are exempt per the Division’s 2018 advisory.
Source: Advisory 2018-38

What is Rhode Island’s economic nexus threshold?
$100,000 in sales or 200 transactions into Rhode Island (remote sellers/marketplaces).
Source: Remote Sellers

Are shipping and delivery charges taxable?
Yes, when the sale is taxable; allocate delivery charges on mixed shipments by price or weight as permitted.
Sources: Ruling 2017-01; § 44-18.1-23