Rhode Island car tax
Rhode Island no longer has a car tax. The motor vehicle excise tax was phased out and ended a year early in FY2023 (July 2022). Owners now pay only registration fees, plus 7% sales tax when they buy.
The motor vehicle excise tax was eliminated in FY2023 (tax bills from July 2022 on). The last levy was FY2022. Only registration fees remain.
Buying a car in Rhode Island: one-time tax
Rhode Island sales/use tax on motor vehicles — 7%. Your trade-in is subtracted before tax.
Paid to the DMV at registration on private-party purchases.
Registration and due dates
Registration is weight-based, roughly $30–$70 a year for a passenger car, with a two-year term. A title costs $52.50.
No yearly car tax bill. Registration renews every two years.
Cut what your car costs in Rhode Island
Car tax is set by your town, but your loan and insurance aren't. Refinancing a car loan at a lower rate often saves more each year than the tax itself.
Questions
Does Rhode Island still have a car tax?
No. The excise tax was fully eliminated in FY2023, a year ahead of the original 2017 phase-out schedule. Towns no longer send car tax bills.
Do I still owe old car tax bills?
Unpaid bills from FY2022 or earlier are still owed to the town and can block registration renewal.
What tax do I pay when I buy a car?
7% sales or use tax on the price, with credit for a trade-in.
Sources
- RI Division of Municipal Finance – Motor vehicle excise phase-out
- Governor's release – car tax elimination
Last checked October 14, 2026. Rates are for passenger cars owned by individuals; leased, business and specialty vehicles can differ. Confirm with your tax collector or commissioner of the revenue.