Rhode Island Division of Taxation

What Rhode Island Division of Taxation does

The Rhode Island Division of Taxation is a state government agency within the Rhode Island Department of Revenue, responsible for administering Rhode Island state taxes and fostering voluntary taxpayer compliance through education. The Division serves approximately one million state residents and all business entities operating in the state, with primary customer segments including Individual Taxpayers (personal income, estate, fiduciary filers), Business Taxpayers (corporations, partnerships, S-corps, employers, pass-through entities), Tax Professionals and CPAs, and Software Developers who integrate with Division filing systems.

The Division's core technology platform centers on the RI Tax Portal, a self-service web application enabling electronic filing, ACH Debit payments, business registration, refund status tracking, Letters of Good Standing, and Power of Attorney management. Supporting infrastructure includes Modernized E-file (MeF) integrated with IRS e-file for simultaneous Federal/RI filing, PIN-based account security, 2D barcode processing and 1D barcode scanning for paper returns, OCR scanlines, and bulk filing capabilities for the Withholding Tax Form RI-941. An Approved Software Vendors Program allows third-party tax software to integrate with Division systems through standardized Acceptance Test System (ATS) protocols and MeF submission guidelines. The Division also operates a Health Insurance Mandate Reporting system with flat file/XML/CSV template options and a Free File Program for eligible taxpayers.

The Division's revenue model is administrative rather than commercial: it collects taxes on behalf of the state rather than generating revenue as a business entity and is funded through state appropriations. Tax streams administered include Sales & Use Tax (7%), Corporate Income Tax (7% with $400 minimum), Personal Income Tax, Hotel Tax (6%), Meals and Beverage Tax (1%), Withholding Tax, Estate Tax, and various excise taxes covering motor fuel, cigarettes, tobacco, cannabis, and ENDS products. Most taxpayer services are free; nominal license fees apply to cigarette distributor/dealer permits ($25-$100) and flea market vendor permits ($10-$120). The Division is a Streamlined Sales Tax member state and operates a Remote Seller law for out-of-state tax collection.

Name

Rhode Island Division of Taxation

Legal name

Rhode Island Division of Taxation

Website

https://tax.ri.gov

Company type

Public

Operating status

Operating

Short description

The Rhode Island Division of Taxation is a state government agency that administers Rhode Island state taxes, including personal income, corporate, sales and use, withholding, and excise taxes. It serves individuals, businesses, CPAs, and software developers through its online Tax Portal, Modernized E-file integration with the IRS, and Approved Software Vendors program.

Ownership category

akta.pro rank

Product category

State Tax Administration

NAICS

Public Finance Activities (921130), Public Administration (92)

akta.pro primary industry

Revenue Systems, E-Filing & Digital Tax Administration (BPAIADAO)

akta.pro secondary industries

Taxpayer Registration, Identity & Account Management (BPAIADAB), Excise, VAT/Sales Tax & Indirect Tax Administration (BPAIADAH), Tax Return Filing, Processing & Assessment (BPAIADAC), State/Provincial Taxation & Revenue Administration (BPAIABAD)

Keywords

• State tax administration
• Personal income tax
• Sales use tax
• Corporate income tax
• Electronic tax filing

Headquarters

HQ city

Providence

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Infrastructure, Others

Revenue model

1. Sales & Use Tax: The Division administers a 7% sales tax on all taxable retail sales and a 1% local meals and beverage tax on food sales.
2. Hotel Tax: A 6% hotel tax is collected on hotel room rentals.
3. Corporate Income Tax: Rhode Island Corporate Income tax is assessed at the rate of 7% of Rhode Island taxable income. All corporations with Rhode Island business activity are subject to a minimum tax of $400.
4. Personal Income Tax: Personal income tax imposed for each taxable year on the Rhode Island income of every individual, estate and trust, based on federal adjusted gross income subject to modification.
5. Withholding Tax: Employers are required to withhold a portion of their employees' wages for work performed in Rhode Island and periodically remit those funds to the Division.
6. Pass-through Entity Tax: Pass-through entities with non-resident members must file a pass-through entity return and pay appropriate tax on income of non-residents.
7. Cigarette and Tobacco Taxes: Various taxes on cigarettes, tobacco products, and Electronic Nicotine Delivery System (ENDS) products.
8. Motor Fuel Tax: Taxes on motor fuel including International Fuel Tax Agreement (IFTA) tax.
9. Estate Tax: Estate tax imposed upon transfer of net value of assets of decedents with actual situs in Rhode Island.
10. Adult Use Cannabis Tax: Tax on adult use cannabis products.
11. Non-Owner Occupied Property Tax: New tax effective July 1, 2026 on residential real properties assessed over $1 million that are not owner occupied.
12. License and Permit Fees: Fees from various licenses including cigarette distributor license ($100), cigarette dealer's license ($25), flea market vendor permits, and retail sales permits.

Pricing tiers

Distribution channels8 records

Marketing channels8 records

Core offering

The Rhode Island Division of Taxation is the state government agency that administers Rhode Island's tax laws, including personal income tax, corporate income tax (7%), sales and use tax (7%), hotel tax (6%), meals and beverage tax (1%), withholding tax, estate tax, and various excise taxes. It provides self-service electronic filing, payment processing, refund status tracking, business registration, and taxpayer assistance through the RI Tax Portal and Modernized E-file (MeF) systems. The Division serves all Rhode Island residents, businesses, CPAs, and out-of-state sellers with state tax obligations.

Product overview

The Rhode Island Division of Taxation operates a unified tax administration platform centered on the Tax Portal, a self-service web-based system for individuals, businesses, and CPAs. The core product portfolio includes: the Tax Portal (primary platform for filing returns, making payments, viewing bills, requesting Letters of Good Standing, and managing Power of Attorney); Modernized E-file (MeF) for software-based tax filing; the Quarterly Wage and Unemployment Tax Filing System; Health Insurance Mandate Reporting; Tax Refund Status tracking; and Bulk Filing for Withholding Tax. Supporting these is a comprehensive Tax Forms Library organized by tax type (Audit, Business Tax, Individual Tax, Prior Year) with forms available in PDF format. An Approved Software Vendors Program enables third-party software developers to build and submit tax filing solutions that integrate with the Division's systems.

Differentiator

Problem solved

Functional benefit

Products and services

• Tax Portal
• Modernized E-file (MeF)

Segments4 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Six partnerships are on record, tiered core and minor.

• RI Department of Labor and TrainingcoreStrategic or Co-development PartnerThe Employer Tax unit transferred from the RI Division of Taxation to the RI Department of Labor and Training effective April 11, 2022. The Division maintains collaboration with DLT on employer tax matters including Employment Security, Temporary Disability Insurance, and Job Development Fund taxes. Address: RI Department of Labor and Training, Employer Tax Unit, 1511 Pontiac Ave, Cranston, RI 02920-0942.
• RI Secretary of StateminorStrategic or Co-development PartnerThe Division references the Secretary of State's website for apportionment regulations and business registration services. Corporations register with both agencies for state tax and business compliance purposes.
• RI Commerce CorporationcoreStrategic or Co-development PartnerThe Division administers tax credit and incentive programs in conjunction with the RI Commerce Corporation. Programs include Historic Preservation Investment Tax Credits, Motion Picture Production Tax Credits, Musical & Theatrical Production Tax Credits, Rhode Island New Qualified Jobs Incentive Act 2015, Rebuild Rhode Island Tax Credit, and Stay Invested in RI Wavemaker Fellowship.
• Internal Revenue Service (IRS)coreTechnology or IntegrationThe Division's Modernized E-file system integrates with IRS e-file for simultaneous Federal and Rhode Island tax return filing. The Division also follows Federal Form 706 structure for the RI-706 estate tax form and references IRS regulations and publications for guidance.
• Streamlined Sales Tax (SST) Governing BoardcoreStrategic or Co-development PartnerRhode Island is a member state of the Streamlined Sales Tax initiative, which provides standardized sales tax collection and administration across member states to simplify compliance for sellers.
• Approved Software VendorscoreTechnology or IntegrationSoftware vendors who register with and are approved by the Division to provide electronic filing services for Rhode Island tax forms. Vendors must register with the Division and submit forms for approval testing before offering Rhode Island tax filing options.

Scale indicators3 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Massachusetts Department of Revenue: Massachusetts' state tax administration agency operating the MassTaxConnect portal for personal income, corporate, sales, and withholding taxes. Most direct functional peer given proximity and similar tax structure (5% sales, 5% corporate, flat-rate personal income).
• Connecticut Department of Revenue Services: Connecticut's state revenue agency administering personal income, corporate, sales and use, and various excise taxes through its myConnecticut portal. Direct peer given regional proximity and similar personal income tax base linked to federal AGI.
• New York State Department of Taxation and Finance: Administers New York personal income, corporate, and sales taxes through a similar mix of personal income tax, corporate franchise tax, and Streamlined Sales Tax compliance. Comparable in function though materially larger in scale.
• California Franchise Tax Board: Administers California personal income tax and corporate income tax through MyFTB and similar e-file integration to the IRS. Direct peer in administering state-level income taxes with federal AGI-based conformity.
• California Department of Tax and Fee Administration: Administers California sales and use tax as well as various excise taxes across similar revenue streams (cannabis, tobacco, motor fuel). Comparable to RI's Sales & Excise division.
• Florida Department of Revenue: Administers Florida's sales and use tax, corporate income tax, and various excise taxes. SST member state with comparable e-filing infrastructure and remote seller nexus rules.
• Texas Comptroller of Public Accounts: Administers Texas state taxes (sales, franchise, motor fuel) and serves as chief revenue estimator. Comparable in administering Streamlined Sales Tax obligations and managing diverse excise tax base.

Broad incumbents

• Internal Revenue Service (IRS): Federal tax administrator; the Division integrates with the IRS via Modernized E-file for simultaneous federal/state filing and references IRS forms and regulations. Not a direct competitor, but a foundational upstream/downstream partner.

Others

• Streamlined Sales Tax Governing Board: Interstate compact that RI belongs to as a member state. Provides standardized definitions, software certification, and remote seller registration infrastructure that the Division leverages.
• Tax Foundation: Independent tax policy research organization producing analyses used by state tax administrators. Indirect peer as an ecosystem participant shaping the policy environment for state revenue agencies.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xtwitter.com/RhodeIslandTax

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Rhode Island Division of Taxation