Rhode Island Property Tax Overview

Keywords: Rhode Island property tax, property tax in Rhode Island, Rhode Island property tax rate

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1. Key Statistics (2026)

Source: According to the U.S. Census Bureau's American Community Survey (ACS) (5‑year estimates, 2023).

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2. Effective Rhode Island Property Tax Rate

The effective Rhode Island property tax rate of 1.32 % is calculated by dividing the median annual tax bill by the median home value. This rate represents the amount of tax paid per dollar of assessed property value and is a common metric for comparing tax burdens across jurisdictions.

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3. Example Tax Bills

Using the effective rate of 1.32 %:

Calculation: Tax = Assessed Value × 1.32 %.

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4. Variation by County / Municipality

Rhode Island’s political subdivisions are organized into five counties, but most property‑tax authority resides with municipalities (cities and towns) rather than the counties themselves. Consequently, the Rhode Island property tax rate can differ between municipalities because each adopts its own millage rates to fund local services such as schools, police, and public works. Property owners should check the specific rate set by their city or town for precise tax obligations.

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5. Comparison to the National Average

• Effective tax rate: Rhode Island’s 1.32 % is 36 % above the national average of 0.97 % (U.S. Census Bureau data).
• Ranking: With a rank of 40th out of 52 (including states, the District of Columbia, and U.S. territories), Rhode Island’s property tax burden is higher than most states but lower than a few high‑tax jurisdictions such as New Jersey and Connecticut.

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6. Considerations for Specific Groups

6.1 Retirees

• Tax burden: The higher effective rate means retirees may pay more in property taxes compared with many other states.
• Exemptions: Rhode Island offers a Senior Citizen Homestead Exemption that can reduce the taxable value for owners age 65 or older who meet income criteria. The exemption amount and eligibility are administered at the municipal level.
• Fiscal impact: Retirees should evaluate the net tax after any applicable exemption to determine the overall cost of homeownership.

6.2 Landlords

• Owner responsibility: Property tax in Rhode Island is levied on the property owner, regardless of whether the unit is owner‑occupied or rented.
• Impact on cash flow: The effective rate of 1.32 % should be incorporated into rental‑income projections and operating budgets.
• Comparative context: While the rate is higher than the national average, it remains lower than the rates in several neighboring New England states, which may affect regional investment decisions.

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7. Frequently Asked Questions

Q1: How is the property tax amount calculated in Rhode Island?
A: The tax bill is generally computed by multiplying the assessed value of the property (often close to market value) by the municipality’s millage rate, which is expressed as an effective percentage. For the state as a whole, the effective Rhode Island property tax rate is 1.32 % (U.S. Census Bureau data, 2023).

Q2: Are there property‑tax exemptions for seniors in Rhode Island?
A: Yes. Eligible homeowners age 65 or older may qualify for a Senior Citizen Homestead Exemption that reduces the taxable portion of their home’s assessed value. The exemption amount varies by municipality and is subject to income limits.

Q3: How often are property assessments updated?
A: Municipal assessors typically reassess properties on a revaluation cycle that ranges from 3 to 5 years, though some jurisdictions may conduct interim updates. The most recent assessed values are reflected in the tax bills issued for the fiscal year.

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All figures and statements are based on the most recent ACS estimates (2026) and publicly available Rhode Island municipal tax information.