Starting on July 1, 2026, owners of residential dwellings that are assessed at more than $1 million will be required to pay a new quarterly state property tax on the portion that is over $1 million unless the owners can document that they live in or rent the property to tenants for 183 days or more.
The Rhode Island Division of Taxation has sent a questionnaire to more than 9,000 property owners to help them determine whether they will owe a tax or qualify for an exemption.
Client Resources and FAQS: The Rhode Island Division of Taxation has created resources that you can share with your clients: new Non-Owner Occupied Property Tax webpage, including Advisory 2026-09 and an additional FAQ document. Anyone with specific tax scenarios that are not addressed in the FAQs can contact the Excise Tax Section at [email protected].
REALTORS® only may contact [email protected].
Rentals and Closings: At a webinar on April 8th, the Division of Taxation fielded a number of questions about the tax. Here are several key questions that the Division is still considering.
▪How will closing attorneys be able to determine whether a seller has paid the tax and/or is exempt from the tax? The proposed regulations would require a seller to obtain a Certificate of No Tax Due at least 15 days before the closing to show that the seller has paid his/her share of the non-owner occupied tax?
▪If a property owner rents to tenants without a written lease for more than 183 days, can the owner use other options such as utility bills and affidavits to document the length of the rental?
▪If there are written rental agreements, what documentation must the owner provide?
Public Hearing and Testimony:
The Division of Taxation has released draft regulations to interpret the law. RICR Template
If you would like to submit comments about the proposed regulations,
- Submit written testimony “until May 9th”
Bethany M. Whitmarsh
Department of Revenue
1 Capitol Hill Providence, RI 02908