Due date is October 15 for income tax returns on extension

The Rhode Island Division of Taxation reminds tax professionals and taxpayers that the due date for filing Rhode Island resident and nonresident personal income tax returns on extension is Wednesday, October 15, 2025. The October 15 due date is also the due date for some other entities.

More information is available in Advisory 2025-21.

Further Rhode Island Tax Guidance on H.R. 1 (Public Laws No.: 119-21)

The Rhode Island Division of Taxation today provides guidance regarding Rhode Island tax treatment in response to the recent enactment of federal legislation, from which Rhode Island decoupled in its Fiscal Year 2026 Budget.

H.R. 1 (Public Laws No.: 119-21) was enacted on July 4, 2025 and includes tax provisions that impact tax filings for certain filers for Tax Year 2025 as well as retroactive tax provisions that could impact Tax Years 2022, 2023, and 2024.

More information is available in Advisory 2025-20.

Update to the definition of OTP

The Rhode Island Division of Taxation reminds taxpayers and tax professionals of an upcoming change to the taxation of other tobacco products (OTP). Recent legislation has expanded the definition of products categorized as OTP. As of 12:01 a.m. on October 1, 2025, certain products that contain nicotine will be taxed as OTP, whether the nicotine is natural or artificial.*
 
The update to the definition of OTP will generally expand the range of products considered OTP. An example of such a product is nicotine pouches, which do not meet the definition of OTP in effect prior to 10/1/2025, but which is included in the definition of OTP on and after October 1, 2025. The tax rate for these products will be 80% of the wholesale cost of the product.

More information is available in Advisory 2025-19.

* “Other tobacco products” does not include any product that has been approved by the United States Food and Drug Administration for the sale of or use as a tobacco or nicotine cessation product.

Rhode Island Decouples from Recently Enacted Federal Legislation-H.R. 1

The Rhode Island Division of Taxation today provides guidance regarding the Rhode Island tax treatment of domestic research and experimental expenditures in light of the recent enactment of federal legislation, from which Rhode Island decoupled in its Fiscal Year 2026 Budget.

More information is available in Advisory 2025-18.

Quarterly Estimated Payments Due Date is September 15, 2025

The Rhode Island Division of Taxation reminds taxpayers and tax professionals that September 15, 2025 is this year’s due date for third quarter estimated tax filing and payment. Estimated tax applies to some personal income filers and many business entities.

More information is available in Advisory 2025-17.

Effective 1/1/26 - Changes to the taxation of short-term rentals

The Rhode Island Division of Taxation reminds taxpayers and tax professionals that changes enacted during the 2025 legislative session will impact short-term rentals. In Rhode Island, short-term rentals include all rentals of lodging where the rental period is 30 consecutive days or fewer. Two changes impacting such short-term rentals will go into effect January 1, 2026.

More information is available in Advisory 2025-16.

Further Guidance - Recent Legislative Changes

The Rhode Island Division of Taxation has published guidance regarding two statutory changes enacted in the recently concluded legislative session.

1. Effective October 1, 2025, an increase of the real estate conveyance tax will go into effect. The distribution of the tax will also be changed.

More information is available in:

• Advisory 2025-13

• Notice 2025-05

2. Rhode Island’s recently concluded legislative session establishes sales tax on short-term “parking services” as defined in the new law.

More information is available in:

• Advisory 2025-14

• Notice 2025-06