Newport, Rhode Island tax rates for fiscal year 2026 are $8.69 per $1,000 of assessed value on residential real estate, $10.77 per $1,000 on commercial real estate, and $14.88 per $1,000 on business tangible personal property.1City of Newport. Tax Rates On top of those, a 1% local meals and beverage tax applies to restaurant purchases, and short-term rentals and hotels now carry a combined 14% lodging tax. The motor vehicle excise tax is no longer charged.
Property Tax Rates
Real estate tax is the biggest line item for most Newport homeowners and the main reason people look up local rates. For FY 2026, the residential rate is $8.69 per $1,000 of assessed value and the commercial rate is $10.77 per $1,000.1City of Newport. Tax Rates To estimate what you’ll owe, divide the assessed value by 1,000 and multiply by the rate. A home assessed at $500,000 would come out to roughly $4,345 for the year.
Rhode Island law requires that all real property be assessed at full and fair cash value as of December 31 of the most recent revaluation or statistical update year.2Rhode Island General Assembly. Rhode Island Code Title 44-5-12 – Assessment at Full and Fair Cash Value Newport’s fiscal year runs July 1 through June 30, so the bill you receive reflects the previous December’s assessment. Bills are issued annually and typically payable in quarterly installments, with the specific due dates printed on each bill.
Business Tangible Personal Property
If you run a business in Newport, you’ll also pay tax on tangible personal property: furniture, equipment, fixtures, and other physical assets used in operations. The rate is $14.88 per $1,000 of assessed value.1City of Newport. Tax Rates That’s higher than either real estate rate. Business owners file an annual return declaring the value of their taxable assets, and the assessor applies depreciation schedules to produce the bill.
Meals and Beverage Tax
Every meal or drink bought at a Newport restaurant, bar, café, or food truck carries a 1% local tax on top of the state sales tax, whether you eat in or take it to go. Businesses collect the tax and remit it to the Rhode Island Division of Taxation, which distributes revenue back to Newport at least quarterly.3Rhode Island General Assembly. Rhode Island Code 44-18-18.1 – Local Meals and Beverage Tax Diners don’t need to do anything beyond paying the check. Food business owners should remit on time; missed payments can trigger penalties, interest, and potential license suspension.
Lodging and Short-Term Rental Tax
Lodging taxes in Newport changed on January 1, 2026, and the total rate went up.4Rhode Island Division of Taxation. Advisory – Changes to the Taxation of Short-Term Rentals A traditional hotel stay or individual room rental now carries 14% in combined tax: the 7% Rhode Island sales tax, a 5% statewide hotel tax, and a 2% local hotel tax. The local hotel share doubled from 1% to 2% at the start of 2026.
Whole-home short-term rentals, such as a house or condo booked through Airbnb or VRBO for 30 days or fewer, also total 14%, but the composition differs: 7% sales tax, a new 5% whole-home short-term rental tax introduced in 2026, and the 2% local hotel tax. Hosts who took bookings before 2026 for 2026 stay dates must charge the new rates at checkout, so review your platform’s tax settings.
Motor Vehicle Excise Tax Is Gone
Rhode Island used to send car owners a separate annual excise bill based on vehicle value. That tax has been fully eliminated. The phase-out began in 2017 and was accelerated in 2022, with no motor vehicle excise tax levied for fiscal year 2024 or any year after.5Rhode Island General Assembly. Rhode Island Code 44-34.1-1 – Excise Tax Phase Out The underlying statutes were later repealed.6Rhode Island General Assembly. Rhode Island Code 44-34.1-5 – Repeal of Excise Tax If you register a vehicle in Newport in 2026, no excise bill is coming regardless of what the car is worth.
Exemptions That Lower Your Rate
Newport reduces the effective property tax rate for some owners. Seniors 65 or older who have lived in their home for at least five years and whose income falls within the limits qualify for an exemption. For 2026, the income caps are $29,080 for a single filer and $38,027 for a married couple.7City of Newport. Senior Property Tax Exemption Claim Veteran exemptions are also available, with specific amounts and eligibility details published in the Assessor’s application materials.8City of Newport. Applications and Forms
Apply as early as the window opens. The Assessor’s office won’t process late applications, and missing a year means paying the full rate for that entire fiscal year with no retroactive adjustment.
Paying the Bill, and What Happens If You Don’t
Newport accepts tax payments by mail to the collector’s lockbox, in person at the Collections Office in City Hall (8:30 a.m. to 4:30 p.m., Monday through Friday), or online through a third-party portal.9City of Newport. Tax Billing and Collections10Municipal Online Payments. Newport, RI Resident Access Portal Credit card payments carry a 3.75% processing fee; e-check and mailed check avoid it.
Falling behind has teeth. Interest accrues on the unpaid balance, and unpaid taxes automatically create a lien on the real estate that takes priority over almost every other claim, including mortgages. If the delinquency drags on, the city can initiate a tax sale to recover what’s owed. Even a small unpaid balance grows quickly, so contact Tax Billing and Collections early if you’re struggling to pay.