Rhode Island slaps Airbnb hosts with higher 13% tax rate

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Rhode Island hits Airbnb rentals with new tax

Rhode Island rang in 2026 with a new tax that hits whole-home vacation rentals hard.

Starting Jan. 1, any home, condo, or mobile home rented for 30 days or fewer now carries a new 5% state tax on top of existing charges.

The change covers rentals on platforms like Airbnb and VRBO, as well as homes rented directly by the owner. The state’s FY2026 budget bill, signed June 30, 2025, made it official.

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Local hotel tax also went up

The new whole-home rental tax was not the only change that kicked in on Jan. 1. Rhode Island also doubled its local hotel tax, raising it from 1% to 2%…

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