Rhode Island charges sales and use tax of 7% statewide on vehicles, with no local add-on. A trade-in does reduce the taxable price, which is real money on the deal.
No local sales tax in Rhode Island; the 7% rate applies to the full price less trade-in.
Manufacturer rebate treatment was not confirmed from a Division of Taxation source in this run; Rhode Island generally taxes the price before manufacturer rebates. Verify.
The municipal motor vehicle excise tax was fully phased out in FY2023, so there is no annual value-based vehicle tax.
Leases: tax is collected on each lease payment (including capitalized cost reductions and acquisition fees) by the lessor.
| Fee | Amount |
|---|---|
| Title | $53.50 |
| Registration (weight-based) | ~$54 |
| DOT surcharge (annual (rose from $15 on Jan 1, 2026)) | $20.00 |
Lease tax applies to each monthly payment rather than to the full price of the car, so you pay it as you go.
Pick your city for the exact combined rate where you register, plus what title and registration run there.
7%. Rhode Island applies one rate statewide on vehicles, so it does not change from city to city.
Trade-in allowance of a private passenger automobile given in trade toward another private passenger automobile is excluded from the tax base (R.I. Gen. Laws 44-18-30(23); Regulation SU 12-62).
Title is $53.50. Passenger vehicles 0-4,000 lbs: $30 base + $3.50 technology surcharge + $20 DOT surcharge = $53.50 per year (registrations are issued for two years: $107). 4,001-5,000 lbs $40 base ($63.50/yr). EV $200, PHEV $100, hybrid $50 per year added from January 1, 2026.
No. Rhode Island sets no statutory cap, and dealers typically charge around $399. No statutory cap. Typical from CarEdge 2026 (secondary).
Tax applies to each monthly payment rather than the whole price of the car, so the tax is spread across the lease.
Rates, fees, and rules change. These figures are estimates for planning, not tax advice; confirm the final numbers with the dealer and your state's motor vehicle agency before you buy.