Rhode Island sales tax for contractors

State sales tax rate

7% sales/use; no scheduled change seen

Source: https://tax.ri.gov/sites/g/files/xkgbur541/files/2024-02/Contractor%20Guide%2002.2024%20final.pdf. Last verified 2026-11-02.

How contractors are taxed

contractor is consumer (pays tax on materials, supplies, tools, equipment) for lump-sum, cost-plus and T&M with upset/guaranteed price; contractor becomes retailer (retail permit, resale certificate, collects tax) if it sells materials at agreed price plus service or sells materials at retail; no special contractor tax

Source: https://rules.sos.ri.gov/Regulations/Part/280-20-70-54. Last verified 2026-11-02.

Certificates and forms

Contractor's Exempt Purchase Certificate (exempt-org projects, must be paired with RI Certificate of Exemption); resale certificate with permit number

Source: https://rules.sos.ri.gov/Regulations/Part/280-20-70-54. Last verified 2026-11-02.

New-employer unemployment tax

2026 new employer 1.21% (incl. 0.21% Job Development Assessment); wage base $30,800 ($32,300 at top rate); 2027 not yet published

Source: https://dlt.ri.gov/press-releases/2026-tax-rates-unemployment-insurance-and-temporary-disability-insurance. Last verified 2026-11-02.

What this page does not cover

Local taxes, special districts, and any detail we could not confirm on an official page are left out on purpose. Confirm current rates, forms and due dates with the state agency and your CPA.

How BossHours helps

BossHours keeps your quotes, invoices and job records in one place so your accountant has what they need at filing time. It does not give tax or legal advice.