Does Rhode Island's non-owner occupied tax apply to a home owned by a trust?
Quick answer
Not if it is your primary residence. The Division of Taxation's March 2026 FAQ (Q15) says a trust-owned home you live in is not taxed if the trust authorized you to reside there or official documentation establishes your residency. A primary residence means living there at least 183 days in the privilege year, usually shown on your Rhode Island resident 1040 and driver's license.
What does the law say? Key facts and official sources
| Item | What the law says | Source |
|---|---|---|
| Start | Taxable years beginning on or after July 1, 2026 (44-72-4); first tax year July 1, 2026 to June 30, 2027 uses the December 31, 2024 assessment (FAQ Q3) | R.I. Gen. Laws 44-72-4 |
| Trust-owned home | Not subject to tax if the resident was authorized by the trust to reside at the property or there is official documentation to establish residency (FAQ Q15) | RI Division of Taxation FAQ (March 2026) |
| Primary residence | Where a taxpayer lives for at least 183 days within the privilege year; usually the address on the RI resident 1040, driver's license and other official documents (FAQ Q12, Q15) | RI Division of Taxation FAQ (March 2026) |
| Who can owe it | "Person" includes any individual, corporation, company, association, partnership and other entity (44-72-3(5)) | R.I. Gen. Laws 44-72-3 |
| Rate | $2.50 for each $500 (or fraction) of assessed value above $1,000,000 (44-72-6); e.g. $1.5 million assessed = $2,500 a year | R.I. Gen. Laws 44-72-6 |
| Source note (flag) | The statute says rented "more than 183 days" (44-72-5) and not occupied "a majority of days" (44-72-3); the Division FAQ says "183 days or more". We do not pick a side; ask the Division if you are at exactly 183 days | R.I. Gen. Laws 44-72-5 |
| Last verified | October 31, 2026 | Astor Ventures |
What proof should the trust keep?
The FAQ points to the trust's authorization for you to live there or official documents establishing residency. A Rhode Island resident income tax return usually shows the 183 days (FAQ Q13); the Division may ask for more.
What about a home held in an LLC?
The statute lets the tax be assessed against corporations, companies and other entities (44-72-3(5)). The FAQ does not address an LLC-owned home used by a member, so ask the Division at [email protected] before relying on an exemption.
I got a tax notice but I live there. What now?
The Division sends notices where records cannot confirm a primary residence or exemption, and owners can send documentation showing the home is their primary residence (FAQ Q8).
Want it done in an afternoon? The Rhode Island non-owner occupied tax records kit gives you a day-by-day occupancy and rental tracker, a proof-to-keep list, a payment calendar and steps to request the Certificate of No Tax Due, with the official text quoted. One-time payment of $49, instant download.
What else do people ask?
How much is the tax?
$2.50 per $500 of assessed value above $1 million (44-72-6).
Is there a return to file?
No. The Division sends a notice with the amount and due dates (FAQ Q7).
When are payments due?
September 15, December 15, March 15 and June 15 (44-72-7).
Is this legal advice?
No. General information only.
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