Providence, RI Taxes 2025
Complete local tax guide and OBBBA calculator
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Providence Tax Overview 2025
Rhode Island's capital with high property taxes. University city.
Local Income Tax
0%
City/county rate
Sales Tax
7.00%
State + local
Property Tax
2.35%
Effective rate
Median Home
$350,000
Home value
No Local Income Tax!
Providence does not impose a local income tax on residents, which means you only pay state income tax (if applicable) and federal taxes.
State Tax Information
Providence is located in Rhode Island (3.75% - 5.99% state income tax)
💼 Providence Local Income Tax
Providence does not impose a local income tax on residents. Your income tax obligations are limited to state income tax (if applicable in Rhode Island) and federal income tax.
This is good news for Providence residents, as it means one less tax to worry about compared to cities that do impose local income taxes.
Total Income Tax Burden in Providence
🛒 Providence Sales Tax 2025
The combined sales tax rate in Providence is 7.00%. This includes both the Rhode Island sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Providence. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on Rhode Island law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $3.50 | $53.50 |
| $100 | $7.00 | $107.00 |
| $500 | $35.00 | $535.00 |
| $1,000 | $70.00 | $1,070.00 |
🏠 Providence Property Tax 2025
The average effective property tax rate in Providence is 2.35%. Based on the median home value of $350,000, the typical homeowner pays approximately $8,225 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Providence based on school district and other taxing authorities.
Estimated Annual Property Tax in Providence
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $4,700 | $392 | ✓ Yes |
| $300,000 | $7,050 | $588 | ✓ Yes |
| $400,000 | $9,400 | $783 | ✓ Yes |
| $500,000 | $11,750 | $979 | ✓ Yes |
| $750,000 | $17,625 | $1,469 | ✓ Yes |
| $1,000,000 | $23,500 | $1,958 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Providence Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Providence Residents
High property taxes make SALT cap increase valuable.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Providence resident.
Available OBBBA Deductions:
Calculate Your Providence Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Providence resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Providence?
The combined sales tax rate in Providence is 7.00%. This includes both state and local sales taxes.
Does Providence have a local income tax?
Providence has a local income tax of 0%. This is in addition to any state and federal income taxes.
What is the property tax rate in Providence?
The average effective property tax rate in Providence is 2.35%. On a home worth $350,000, you'd pay approximately $8,225 per year.
How do OBBBA deductions benefit Providence residents?
High property taxes make SALT cap increase valuable. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.