How is property tax calculated in Rhode Island?

Rhode Island towns set a mill rate, expressed as dollars of tax per $1,000 of assessed value. Annual tax equals the assessed value, minus any exemption, divided by 1,000 and multiplied by the mill rate. A 25-mill rate on a $300,000 home is $7,500 per year.

A mill rate is the amount of tax owed per $1,000 of assessed property value. One mill equals $1 of tax per $1,000. Rhode Island residential mill rates commonly range from about 10 to 25 mills depending on the municipality and property class.

What is the average property tax rate in Rhode Island?

Rhode Island's effective property tax rate averages roughly 1.3% to 1.5% of market value, among the higher rates in the United States. The exact effective rate depends on your town's mill rate and assessment ratio.

Does Rhode Island have a homestead exemption?

Some Rhode Island municipalities, including Providence, offer an owner-occupied homestead exemption that reduces the taxable value of a primary residence. The amount and eligibility vary by town, so enter your town's exemption if it applies.

Are property taxes the same across Rhode Island?

No. Each of Rhode Island's 39 cities and towns sets its own mill rate and assessment schedule, and many tax residential, commercial, and tangible property at different rates. This tool uses residential mill-rate presets but lets you enter any custom rate.

Rhode Island Property Tax Estimator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

Rhode Island property taxes are set locally as a mill rate — the dollars of tax owed per 1,000 dollars of assessed value. This estimator multiplies your home value by your town’s mill rate, subtracts any homestead exemption, and shows the annual bill plus an effective rate.

How it works

Rhode Island assesses real property at fair-market value, then each city or town applies a mill rate. The formula is:

taxable value = assessed value − homestead exemption
annual tax    = (taxable value ÷ 1,000) × mill rate

A mill is one dollar of tax per 1,000 dollars of value, so a 20-mill rate equals 2 percent of taxable value. Residential mill rates in Rhode Island commonly run from about 10 to 25 mills depending on the municipality. The effective rate is the annual tax divided by the full assessed value, expressed as a percentage.

Example

A 350,000 dollar home in a town with a 20-mill residential rate and no exemption owes (350,000 ÷ 1,000) × 20 = 7,000 dollars per year, an effective rate of 2.0 percent. If the town grants a 30,000 dollar homestead exemption, the taxable value drops to 320,000 dollars and the tax falls to 6,400 dollars.

Notes

Mill rates change annually and many towns tax owner-occupied, non-owner, and commercial property at different rates. Providence and some other municipalities offer a homestead exemption that this tool models as a flat value reduction. Always confirm your current mill rate, assessment ratio, and exemption with your local tax assessor. Estimate only, not tax advice.