Rhode Island

Rhode Island real estate conveyance tax: rate and who pays

Rhode Island charges $3.75 per $500 of price on a deed, $3,000 on a $400,000 home, paid by the seller unless the contract says otherwise.

Checked on against the official sources listed at the bottom of the page.

In short

Rhode Island taxes the sale of real estate through its real estate conveyance tax: $3.75 for each $500 of the price, or part of it (R.I. Gen. Laws § 44-25-1, as amended effective October 1, 2025). That is $3,000 on a $400,000 home. Unless the parties agree otherwise, the seller pays. Residential sales above $800,000 owe a second layer.

What is the rate?

Section 44-25-1(a) puts a tax on each deed that transfers real estate for more than $100. The rate is $3.75 for each $500, or fractional part of it, of the amount paid. The amount includes any lien or mortgage that stays on the property at the time of sale. Because a partial $500 counts as a full $500, the tax rounds up.

The tax is due when the deed is signed, delivered, accepted or presented for recording. Payment is shown by documentary stamps on the original deed (§ 44-25-3), and the recording office accepts only the original.

Is there a higher rate on expensive homes?

Yes. Section 44-25-1(b) adds a second tax of $3.75 per $500 on the part of the price above $800,000 when the property is residential. The statute raises that $800,000 threshold with inflation (CPI-U) for tax years beginning on or after January 1, 2026, and it never goes down. The adjusted figure is not in the statute, so check the current threshold with the Rhode Island Division of Taxation before you close. The Division’s own pages could not be opened for this article.

Who pays?

By law, “in the absence of an agreement to the contrary,” the seller (the grantor) pays (§ 44-25-1(a)). The purchase contract can shift the cost, so read the clause before you sign. See closing costs in Rhode Island for the other lines.

Where does the money go?

The statute splits the basic tax this way, per $3.75 of stamps (§ 44-25-1(d)):

RecipientPer $3.75
Distressed community relief program$0.50
Housing resources and homelessness account$0.50
State general use$0.95
Municipality where the tax is collected (balance)$1.80

The extra tax on the part above the threshold goes to the housing production fund ($2.50) and the housing resources and homelessness account ($1.25).

What is exempt?

Section 44-25-2 lists the exemptions. The main ones for home buyers and sellers:

  • A document given to secure a debt, such as a mortgage.
  • A deed where the United States, Rhode Island or a political subdivision is the grantor.
  • Certain sales of manufactured home communities to a resident-owned organization.
  • Some transfers among owners of affordable housing companies financed with federal low-income housing tax credits.

What it costs: worked examples

These are examples, not quotes. The tax is $3.75 times the number of $500 blocks.

Price$500 blocksBasic taxExtra tax above $800,000Total
$300,000600$2,250none$2,250
$400,000800$3,000none$3,000
$900,000 (using the statute’s $800,000 threshold)1,800$6,750$750 (200 blocks on $100,000)$7,500

The $900,000 line assumes the $800,000 figure still applies; if the threshold has been adjusted upward, the extra tax is smaller.

Providence has no separate conveyance tax in the statute I read. The municipality keeps part of the state tax it collects, as shown above. Recording fees are separate; see the Providence guide and closing costs explained.

Frequently asked questions

Does Rhode Island have a real estate transfer tax?

Yes, but it is called the real estate conveyance tax. It is $3.75 per $500 of the price under R.I. Gen. Laws § 44-25-1.

Who pays the conveyance tax in Rhode Island?

The seller, unless the buyer and seller agree otherwise in writing (§ 44-25-1(a)).

How much is the tax on a $400,000 house?

$3,000: 800 blocks of $500 at $3.75 each.

Is the tax higher on a more expensive home?

For residential property, a second tax of $3.75 per $500 applies to the price above $800,000. The threshold is adjusted for inflation starting with 2026, so confirm the current figure.

Does a mortgage pay the conveyance tax?

No. A document given to secure a debt is exempt (§ 44-25-2(a)). The tax applies to the deed.

Compare with the other states: Real estate transfer tax by state.

More Rhode Island guides

Sources

Rhode Island · All states · Federal guides