Guide to Rhode Island Conveyance Tax for Barrington Sellers

Are you planning to sell in Barrington this year or next? Rhode Island just increased its real estate transfer tax, and the change could shift your net proceeds by thousands of dollars. You want a clean closing and clear numbers, especially if you’re funding your next move. In this guide, you’ll learn what changed, when it applies, how to estimate your tax, and the key steps to stay on track. Let’s dive in.

What changed and when

Rhode Island raised the Real Estate Conveyance Tax to $3.75 per $500 of consideration, which is about 0.75% of the sale price. For residential sales, there is also an additional $3.75 per $500 on the portion of the price above $800,000. You can review the official details on the Rhode Island Division of Taxation’s conveyance tax page.

The new rates apply to closings recorded on or after October 1, 2025. The taxable event is the deed recording, not when you signed the purchase and sale agreement. Industry guidance reinforces that the closing date controls which rate applies. See RI REALTORS’ reminder about the Oct 1, 2025 effective date and closing timing in their member advisory.

Who pays and what triggers it

By default, the seller (grantor) pays the conveyance tax unless your contract states otherwise. If you and the buyer agree to split or reassign the cost, put it in writing in the purchase and sale agreement. The Division of Taxation confirms the seller’s responsibility and the recording-based trigger on its conveyance tax page.

How to calculate your tax

The state formula is straightforward: take the total consideration, divide by $500, then multiply by the rate per $500.

• Base tax: (Total price ÷ $500) × $3.75
• Additional tax on residential portion above $800,000: ((Price − $800,000) ÷ $500) × $3.75

Rounding rule

The statute uses “per $500 or fractional part thereof,” which means you round up to the next $500 increment. Your closing attorney will compute the exact figure on the CVYT-1 form. You can verify the rules on the Division of Taxation site.

Quick examples for Barrington price points

• $500,000 sale
  • Old tax: $2,300
  • New tax: $3,750
  • Estimated increase: $1,450
• $750,000 sale
  • Old tax: $3,450
  • New tax: $5,625
  • Estimated increase: $2,175
• $1,200,000 sale
  • New base tax on full price: $9,000
  • Additional tax on the portion above $800,000: $3,000
  • Total new conveyance tax: $12,000

Exact numbers depend on the recorded consideration, rounding to the nearest $500 per statute, and any liens or encumbrances included in the consideration.

What this means for Barrington sellers

Many Barrington homes sell in the $600,000 to $800,000 range, so most sellers should plan for an increase of a few thousand dollars in transfer costs under the new rate. If your sale price exceeds $800,000, the additional surcharge on the overage can increase your total tax significantly.

Update your net proceeds estimate now so you are not surprised at closing. It is also smart to address the conveyance tax during negotiations, since you and the buyer can agree to handle payment differently than the default rule. RI REALTORS notes that sellers are typically responsible unless otherwise agreed, so be explicit in your contract. See their industry advisory.

Timing and planning tips

Confirm your closing date

If your deed is recorded on or after October 1, 2025, the new rate applies, even if you signed the P&S earlier. If you aimed for the old rate, only a recording before Oct 1 would have preserved it. See the RI REALTORS advisory.

Decide who pays in writing

The seller pays by default. If you plan to split or shift the tax, write it into your P&S. The Division confirms the seller responsibility on its conveyance tax page.

Update your net sheet

Recalculate using $3.75 per $500 for the full price and the extra $3.75 per $500 above $800,000 for residential property. Ask your attorney to confirm the exact CVYT-1 amount.

Coordinate early with your attorney

Closing attorneys prepare the CVYT-1 and manage recording. Expect heavier end-of-month volume around the rate change, and potential town hall backlogs. Plan your closing timeline accordingly. See practical timing notes in the RI REALTORS guidance.

Check exemptions and special cases

Some transfers are exempt under R.I. Gen. Laws § 44-25-2. Examples include instruments given to secure debt and certain governmental or affordable-housing related transfers. Review the statute and confirm documentation with your conveyancer. See the exemptions list.

If you own a second home

A separate law created an annual surcharge on non‑owner‑occupied residential properties assessed over $1,000,000, effective July 1, 2026. This affects owners who keep vacation or second homes rather than sell. Get the overview from this legal summary.

Special situations to flag

Mixed-use or classification questions

Whether the additional tax above $800,000 applies depends on how the property is classified. Mixed-use properties may require apportionment between residential and commercial components. Your attorney and local assessor can confirm the correct treatment. See the Division’s guidance on the conveyance tax page.

Entity or corporate transfers

Acquired real estate company transactions carry specific notice and filing requirements with the Division of Taxation. These are separate from a routine home sale and must be followed precisely. Consult the Division’s conveyance tax guidance early if your transfer involves entities.

Your next step

Clarity beats surprises at the closing table. If you are selling in Barrington, get a fresh, accurate net sheet and a plan for timing, negotiation and documentation. For a local, numbers-forward strategy and a smooth process, connect with Alicia Cotter Reynolds.

FAQs

If I signed a P&S before Oct 1, 2025, which rate applies?

• The rate in effect on the closing and recording date applies, so a closing on or after Oct 1, 2025 uses the new $3.75 per $500 rate; see the RI REALTORS advisory.

Who pays the conveyance tax in a Rhode Island home sale?

• The seller pays by statute unless the parties agree otherwise in the purchase and sale; see the Division’s conveyance tax page.

How much more will I pay on a typical Barrington sale?

• Many local sales fall between $600,000 and $800,000, where the increase is often a few thousand dollars; see the $500,000 and $750,000 examples above for quick estimates.

Are there ways to reduce or avoid the tax?

• Only statutory exemptions in R.I. Gen. Laws § 44-25-2 apply; routine sales are taxable, though you can negotiate who pays in your contract; see the exemptions list.

Does this affect vacation or second homes in Rhode Island?

• The conveyance tax applies when you sell regardless of occupancy; separately, an annual surcharge on non‑owner‑occupied properties over $1,000,000 begins July 1, 2026; see this summary.