Rhode Island Use Tax
Rhode Island Use Tax is a tax imposed on goods purchased for use, storage, or consumption in the state when no sales tax was collected at the time of purchase. This typically applies to out-of-state purchases where the seller does not collect Rhode Island sales tax.
Key Points About Rhode Island Use Tax
- Applies to out-of-state purchases: If you buy goods from a seller outside Rhode Island and no sales tax was collected, you may owe use tax.
- Same rate as sales tax: The use tax rate is the same as the state’s sales tax rate, which is currently 7% (as of 2025).
- Reported on state tax return: Use tax is reported on your Rhode Island individual income tax return, specifically on Form RI-1040 or RI-1040NR, depending on your residency status.
- Includes online and catalog purchases: Online shopping, catalog orders, and other remote purchases are subject to use tax if no tax was collected.
- Exemptions apply: Certain items such as groceries, prescription drugs, and some medical devices are exempt from use tax.
How to Report Use Tax
Use tax is reported on your Rhode Island state tax return. For residents, this is Form RI-1040. For nonresidents or part-year residents, it is Form RI-1040NR. The use tax amount should be entered in the appropriate section for "Other Taxes" or similar, depending on the form version.
Important Notes
- Use tax is not a separate form; it is reported as part of your state income tax return.
- Failure to report use tax may result in penalties and interest.
- Keep records of purchases made outside Rhode Island where no sales tax was collected.
Source:
Form RI-1040 Instructions
Form RI-1040NR Instructions
Disclaimer: Always verify with the official Federal or State Department of Revenue Forms and Instructions for the most accurate and up-to-date information.