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NOTICE ABOUT CHANGE IN REAL ESTATE CONVEYANCE TAX Under current law, the tax is equal to two dollars and thirty cents ($2.30) for each five hundred dollars ($500.00) or fractional part thereof that is paid for the purchase of real estate or the interest in an acquired real estate company.
When selling real estate in Rhode Island, all transactions have a real estate conveyance tax, pursuant to RIGL 44-25-1. This payment is collected at closing and a portion of these funds are remitted to the State of Rhode Island and a portion is remitted to the local city or township.
Rhode Island Estate Tax Exemption The estate tax threshold for Rhode Island is $1,733,264. If your estate is worth less than that, you owe nothing to the state of Rhode Island. If it is worth more than that, there is a progressive ladder of tax rates that will determine how much you owe.
Capital gains tax Capital gains are taxable at both the federal and state levels. While the federal government taxes capital gains at a lower rate than regular personal income, states usually tax capital gains at the same rates as regular income.
The title insurance premiums do not include the search and examination fee. The purchaser usually pays the search and examination fee in Rhode Island. The deed transfer tax is known as the realty transfer tax in Rhode Island. The current rate is $2.30 per $500.00.
The Rhode Island (RI) state sales tax rate is currently 7%. Rhode Island is one of the few states with a single, statewide sales tax. Businesses that sell, rent or lease taxable tangible personal property at retail in Rhode Island must register with the state and collect sales tax.
If you are planning to sell your property, you'll have to pay capital gain tax on the profit earned after considering the inflation and indexed cost of acquisition.