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Use tax returns are required from every retailer and from every person who purchases property subject to the use tax unless the tax has already been paid to a retailer authorized to collect it. Use tax is imposed at 7% on the storage, use, or consumption of tangible personal property in Rhode Island.

Charges for shipping, handling, delivery, freight, and postage on taxable goods are generally taxable in Rhode Island. If the sale is tax exempt, the shipping charges are generally exempt as well.

Here's how to calculate the sales tax on an item or service: Know the retail price and the sales tax percentage. Divide the sales tax percentage by 100 to get a decimal. Multiply the retail price by the decimal to calculate the sales tax amount.

Common exemptions Rhode Island imposes a 7 percent sales tax on the sale of most tangible items. However, the state offers exemptions on a range of goods and services, as well as for certain organizations and types of sales. Common exempt goods include clothing and footwear, food, and medical items.

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