Both states tax the sale of real estate, and in both the seller customarily pays. Rhode Island's rate is now well above Massachusetts', which matters most when you're selling a flip or a new build.
The Rates at a Glance
| Item | Massachusetts deed excise | Rhode Island conveyance tax |
|---|---|---|
| Rate | $2.28 per $500 ($4.56 per $1,000, 0.456%) | $3.75 per $500 ($7.50 per $1,000, 0.75%) |
| Higher-price tier | None | An extra $3.75 per $500 on the part of a residential sale above $824,000 in 2026 (1.5% total on that part) |
| Exceptions | Barnstable County (Cape Cod) uses a different rate; ask the Barnstable Registry of Deeds for the current combined rate | Mobile and manufactured homes: $1.40 per $500 |
| Who pays | The seller, by custom; the parties can agree otherwise | The seller, unless the buyer agrees to pay |
| Recent change | None recently | Rose from $2.30 to $3.75 per $500 on October 1, 2025; the $824,000 threshold now adjusts for inflation each January |
Both taxes round up: each $500, or any part of $500, is taxed in full.
Side-by-Side Examples
| Sale price | Massachusetts | Rhode Island |
|---|---|---|
| $500,000 | $2,280 | $3,750 |
| $800,000 | $3,648 | $6,000 |
| $1,000,000 (residential) | $4,560 | $8,820 ($7,500 + $1,320 on the $176,000 above $824,000) |
Why It Matters for Investors
- Flips and new builds: you're the seller, so the tax comes straight out of your profit. On a $1,000,000 Rhode Island new build, it's $8,820.
- Buy-and-hold: you usually won't pay it when you buy, but it's part of your exit cost, so include it when you estimate what you'll keep after selling.
- Negotiation: in either state, the buyer and seller can agree to split it differently in the purchase contract.
Rates and thresholds change. Confirm the current figures with your closing attorney, the Massachusetts Department of Revenue or the Rhode Island Division of Taxation.
Sources
- Learn about Massachusetts tax rates (deeds excise $2.28 per $500), Mass.gov
- M.G.L. c. 64D, § 1: Deeds excise base rates
- Real Estate Conveyance Tax, RI Division of Taxation
- Advisory 2025-13: Conveyance tax increase, RI Division of Taxation
- Advisory 2026-01: Conveyance tax threshold adjustment, RI Division of Taxation
Educational information only, not financial, lending, legal or tax advice. Lender programs, rates and tax rules change; confirm with your lender, attorney or tax advisor. See the disclaimer.