Sales tax on labor in Rhode Island: not taxed on building repairs and new construction; repairs to things and installation depend on the job

Repairing a thing in Rhode Island

It depends. Labor is not taxed if you list it separately from the parts.

• “If the labor and other services are not thus shown separately from the selling price of the property furnished, it will be presumed that the entire charge represents the sale price of the property.” — Repairers, Reconditioners, and Recappers (280-RICR-20-70-24), page date: effective 01/04/2022
• “In such event that labor or service charges are separately stated, such charges are not subject to the imposition of the sales/use tax.” — Repairers, Reconditioners, and Recappers (280-RICR-20-70-24), page date: effective 01/04/2022

Repairing a home or building in Rhode Island

Not taxed. Repairing a building is a construction contract. You pay sales tax on your materials when you buy them; the customer is not charged sales tax on your labor.

• “A contractor is considered the actual consumer of the materials and supplies used. Sales of materials and supplies to contractors are considered retail sales and subject to sales or use tax.” — Contractors & Rhode Island Tax (RI Division of Taxation, 2025), page date: 2025-10 (upload folder)
• “Deck materials = $12,000.00 Labor = $15,000.00 Subtotal = $27,000.00 Tax ($12,000 x 7%) = $840.00” — Contractors & Rhode Island Tax (RI Division of Taxation, 2025) - deck example, page date: 2025-10 (upload folder)
• “"Construction contract" means a contract for the repair, alteration, improvement, remodeling or construction of real property.” — Contractors and Subcontractors (280-RICR-20-70-54), page date: effective 01/04/2022

Installation work in Rhode Island

It depends. If you sell a complete standard unit and install it like a retailer, you charge tax on the item only, and installation listed separately is not taxed. If you don't separate the install charge, the entire charge is taxed. What it turns on: whether the installation charge is listed separately from the price of the item.

• “Installation labor separately stated is not subject to sales tax.” — Contractors & Rhode Island Tax (RI Division of Taxation, 2025), page date: 2025-10 (upload folder)
• “When the retail selling price of the tangible personal property is not separately stated from the installation charge, the entire charge is subject to sales tax.” — Contractors & Rhode Island Tax (RI Division of Taxation, 2025), page date: 2025-10 (upload folder)
• “A person performing such contracts is primarily a RETAILER of tangible personal property ... and should segregate the full retail selling price of such property from the charge for installation, as the tax applies only to the retail price of the property.” — Contractors and Subcontractors (280-RICR-20-70-54), page date: effective 01/04/2022

New construction in Rhode Island

Not taxed. New building work and improvements: you pay tax on materials, tools and supplies when you buy them; no sales tax on your labor.

• “A contractor is considered the actual consumer of the materials and supplies used. Sales of materials and supplies to contractors are considered retail sales and subject to sales or use tax.” — Contractors & Rhode Island Tax (RI Division of Taxation, 2025), page date: 2025-10 (upload folder)
• “Deck materials = $12,000.00 Labor = $15,000.00 Subtotal = $27,000.00 Tax ($12,000 x 7%) = $840.00” — Contractors & Rhode Island Tax (RI Division of Taxation, 2025) - deck example, page date: 2025-10 (upload folder)
• “"Construction contract" means a contract for the repair, alteration, improvement, remodeling or construction of real property.” — Contractors and Subcontractors (280-RICR-20-70-54), page date: effective 01/04/2022

Listing labor separately on the bill in Rhode Island

Changes the answer.

• “Installation labor separately stated is not subject to sales tax.” — Contractors & Rhode Island Tax (RI Division of Taxation, 2025), page date: 2025-10 (upload folder)
• “If the labor and other services are not thus shown separately from the selling price of the property furnished, it will be presumed that the entire charge represents the sale price of the property.” — Repairers, Reconditioners, and Recappers (280-RICR-20-70-24), page date: effective 01/04/2022
• “In such event that labor or service charges are separately stated, such charges are not subject to the imposition of the sales/use tax.” — Repairers, Reconditioners, and Recappers (280-RICR-20-70-24), page date: effective 01/04/2022

Materials on jobs in Rhode Island

Contractor is the consumer: pays tax on all materials and supplies when buying them, unless the contractor sells materials at an agreed price plus labor (then a retailer who collects tax on the materials).

• “A contractor is considered the actual consumer of the materials and supplies used. Sales of materials and supplies to contractors are considered retail sales and subject to sales or use tax.” — Contractors & Rhode Island Tax (RI Division of Taxation, 2025), page date: 2025-10 (upload folder)

Trade services Rhode Island taxes

None of the Rhode Island pages used here names a trade service, such as cleaning or lawn care, as taxed on its own.

• “(3) Pet care services (812910) except veterinary and testing laboratories services.” — R.I. Gen. Laws 44-18-7.3 Services defined, page date: amended effective October 1, 2025

Check with the Rhode Island Division of Taxation

Before you bill: check with the Rhode Island Division of Taxation. As of November 6, 2026.

This is a plain-words summary of each state's own revenue guidance as of November 6, 2026, not tax advice. Rules have exceptions, and cities and counties can add taxes of their own. Check with the state's tax department, linked on every state's page, before you bill.

Compare Rhode Island with every state's answer, or with its neighbours just below.

Next door to Rhode Island

• Connecticut: home repair depends, installation depends
• Massachusetts: home repair not taxed, installation depends

Official sources for Rhode Island

• Contractors & Rhode Island Tax (RI Division of Taxation, 2025) - deck example — 2025-10 (upload folder)
• Contractors and Subcontractors (280-RICR-20-70-54) — effective 01/04/2022
• Repairers, Reconditioners, and Recappers (280-RICR-20-70-24) — effective 01/04/2022
• R.I. Gen. Laws 44-18-7.3 Services defined — amended effective October 1, 2025

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