Overview of Changes
Rhode Island has enacted updates to the real estate conveyance tax in the FY 2026 budget. All real estate closings on or after October 1, 2025 will be subject to revised conveyance tax rates based on the property’s sale price rirealtors.org+1.
New Tax Rates
The updated structure is as follows:
| Purchase Price | Current Rate | New Rate (Effective 10/1/25) |
|---|---|---|
| $800,000 or less | $2.30 per $500 | $3.75 per $500 |
| Over $800,000 (residential) | $2.30 per $500 | $3.75 per $500, plus $7.50 per $500 for the amount exceeding $800,000 rirealtors.org. |
These changes significantly increase the conveyance tax burden on higher-valued property sales.
Who Pays the Tax?
By default, the seller is responsible for paying the conveyance tax—unless an agreement states otherwise between the buyer and seller rirealtors.org.
Legal Framework & Resources
The revised conveyance tax rates were approved just before the close of the 2025 legislative session and are part of Article 5, Section 10 of the state budget bill (H5076Aaa). The revised rates apply based on the real estate closing date, not the contract date rirealtors.org.
Key reference materials include:
- The Summary of Legislative Changes 2025, featuring a helpful tax chart.
- The Rhode Island Division of Taxation real estate conveyance tax FAQ page, providing definitions and guidance rirealtors.orgRI Division of Taxation.
Summary
- Effective October 1, 2025, conveyance tax rates will increase across all property sales.
- Properties under $800,000 will see their rate rise from $2.30 to $3.75 per $500.
- Residential sales above $800,000 will face an even higher rate—$7.50 per $500 on the amount above $800,000, in addition to the base rate.
- Sellers—unless otherwise negotiated—are generally responsible for paying the tax.
- The updated rates are based on the closing date of the property, not the agreement date
