State Summary

• Tax Collection Method: Liens
• Primary Bidding Type: Premium
• Redemption Period: 1 year
• Redemption Interest Rate/Flat Penalty: A 10% flat penalty is applied to the total lien amount if the property is redeemed within the first six months after tax sale. An additional 1% flat penalty is applied in months 7-12 (through the end of the redemption period).

The following information summarizes the life cycle, requirements, and administering of tax liens in the state of Rhode Island. Please read this information carefully. are tax collection laws that pertain to all municipalities in Rhode Island, but be aware that there are subtle differences between the municipalities as well. When the word "typical" is used in the FAQs below, it indicates that most municipalities use this procedure/follow this convention, but not all municipalities.

Is Rhode Island a tax lien or a tax deed state?
Rhode Island is a tax lien state.

What is the name of the local official whom typically collects property taxes in Rhode Island?
Typically, the collector of property taxes in Rhode Island is referred to as the Tax Collector.

When are property taxes due in the state of Rhode Island?
Property taxes are paid in four equal installments in Rhode Island. Due dates vary by municipality.

When do property taxes become delinquent in the state of Rhode Island?
Property tax bills become delinquent the next day after the due dates, and interest on delinquent tax bills accrues at a rate of 13% per annum.

What is the name of the local official whom typically conducts tax sales in Rhode Island?
Tax Collector.

When does the typical Rhode Island municipality hold their annual tax sale?
The time of the tax lien sale varies by municipality. Many municipalities hold their sales between June and October.

What are the registration requirements for the typical Rhode Island tax sale?
Registration requirements vary by municipality.

What is the bidding type used at a typical Rhode Island tax sale?
Typically, Rhode Island municipalities use premium bidding at public outcry auctions.

What forms of payment are generally accepted at a typical Rhode Island tax sale?
The typical municipality accepts cash or certified funds.

What are the general terms of payment for the typical tax lien certificate purchased at a Rhode Island tax sale?
The typical municipality requires full payment for the tax title on the day of the sale.

What is the redemption period for tax lien certificates in Rhode Island?
The redemption period is one year and starts on the day of the tax sale.

What is the maximum return (interest rate and/or flat penalty rates) investors earn while they hold the tax title?

A 10% flat penalty is applied to the total amount paid at the tax sale if the property is redeemed within the first six months after tax sale. An additional 1% flat penalty is applied in months 7-12 (through the end of the redemption period). If the taxpayer redeems the tax title just prior to the end of the one-year redemption period, the maximum return would be 16% (10% initial flat penalty + 6% cumulative for months 7-12).

Is the interest rate applied only to the minimum bid amount for each property, or is this interest rate also assessed on the premium or "overbid" paid for the property during the auction?
The flat penalties that accrue during the redemption period also apply to the the tax title purchaser's "overbid" or premium amount.

Are tax titles offered "over-the-counter" in Rhode Island?
Yes. Tax titles that do not sell at an auction are purchased by the tax collector. The tax collector may then assign or transfer a tax title to any person upon payment of the appropriate amount.

What is the name of the local official whom typically determines the values of properties on an annual basis?
Tax Assessor.

For more information on the life cycle, requirements, and administering of tax liens in the state of Rhode Island, refer to Chapter 44-9 Tax Sales in the Rhode Island General Laws.

Rhode Island Municipality Reference