Rhode Island Tax Division Announces New Taxes on Short-Term Lodging Rentals

The Rhode Island Division of Taxation published a notice announcing changes to the taxation of short-term lodging rentals that will take effect on Jan. 1, 2026. Effective that date, the state’s local hotel tax rate will increase from 1 percent to 2 percent for all short-term rentals, and a new 5 percent tax will apply to the short-term rental of residential dwellings rented in their entirety. [R.I. Div. of Tax’n, Notice 2025-09, 10/24/25]

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