Pay business taxes

Non-profits registered with the RI Department of State are not automatically exempt from paying taxes. You may owe income taxes to the Internal Revenue Service and sales taxes to the RI Division of Taxation and/or your local city or town. Your tax obligations may vary if your non-profit corporation generates unrelated business income.

State taxes

Most non-profit corporations do not owe income taxes in Rhode Island. Your non-profit may apply to the RI Division of Taxation for exemption from the sales and use tax. Find out more. You should be aware that there may be additional tax obligations including unemployment tax (http://www.uitax.ri.gov/).

To report unrelated business income, non-profits must file IRS Form 990T and RI-1120C. Minimum corporate tax ($400) may apply.

Federal taxes

Non-profit corporations registered with the RI Department of State are not automatically exempt from federal income taxes. You must apply for exemption.

Tax exempt non-profits must file Form 990 with the IRS each year.

Unrelated business income is reported using Form 990T.

If your non-profit has not been granted exemption from federal income taxes, it may be helpful to contact an accounting professional.

Local taxes

Below is the contact information for Rhode Island’s municipal tax collectors. Please contact your local tax collector for specific information about any local business-related taxes you may owe.

City or Town Phone Number Business Hours
Barrington 401-247-1900

Mon: 8:30am – 8:00pm
Tues – Thurs: 8:30am – 4:30pm
Fri: 8:30am – 12:00pm

Bristol 401-253-7000 Mon – Fri 8:00am – 4:00pm
Burrillville 401-568-4300 Mon - Wed: 8:30am – 4:30pm
Thurs: 8:30am – 7:00pm
Fri: 8:30am – 12:30pm
Central Falls 401-727-7470

Mon – Thurs: 8:30am – 4:30pm
Fri: 8:30am – 1:30pm

Charlestown 401-364-1234 Mon – Fri: 8:30am – 4:30pm
Coventry 401-822-9167 Mon – Fri: 8:30am – 4:30pm
Cranston 401-780-3333 Mon – Fri: 8:30am – 4:30pm
Cumberland 401-728-2400 Mon – Fri: 8:30am – 4:30pm
East Greenwich 401-886-8612 Mon – Fri: 8:30am – 4:30pm
East Providence 401-435-7544 Mon – Fri: 8:00am – 4:00pm
Exeter 401-364-1234 Mon – Fri: 9:00am – 3:30pm
Foster 401-392-9200 Mon – Fri: 8:30am – 5:30pm
Glocester 401-568-6206 Mon – Fri: 8:00am – 4:30pm
Hopkinton 401-377-7781 Mon – Fri: 8:30am – 4:30pm
Jamestown 401-423-9807 Mon – Fri: 8:00am – 4:30pm
Johnston 401-351-6618 Mon – Fri: 8:30am – 4:30pm
Lincoln 401-333-1100 Mon – Fri: 8:30am – 4:30pm
Little Compton 401-635-4219 Mon – Fri: 8:30am – 4:30pm
Middletown 401-847-0193 Mon – Fri: 8:00am – 4:00pm
Narragansett 401-782-0648 Mon – Fri: 8:30am – 4:30pm
Newport 401-845-5401 Mon – Fri: 8:30am – 4:30pm
New Shoreham 401-466-3230 Mon – Fri: 9:00am – 3:00pm
North Kingstown 401-294-3331 Mon – Fri: 8:30am – 4:30pm
North Providence 401-232-0900 Mon – Fri: 8:30am – 4:30pm
North Smithfield 401-767-2200 Mon – Fri: 8:30am – 4:30pm
Pawtucket 401-728-0500 ext. 344 Mon – Fri: 8:30am – 4:30pm
Portsmouth 401-683-1214 Mon – Fri: 8:30am – 4:30pm
Providence 401-331-5252 Mon – Fri: 8:30am – 4:30pm
Richmond 401-539-9000 Mon – Fri: 9:00am – 4:00pm
Scituate 401-647-5526 ext. 128 Mon – Fri: 8:30am – 4:00pm
Smithfield 401-233-1005 Mon – Fri: 8:30am – 4:30pm
South Kingstown 401-789-9331 ext. 1215 Mon – Fri: 8:30am – 4:30pm
Tiverton 401-625-6706 Mon – Fri: 8:30am – 4:00pm
Warren 401-245-7340 Mon – Fri: 8:30am – 4:30pm
Warwick 401-738-2002 Mon – Fri: 8:30am – 4:30pm
West Greenwich 401-392-3800 Mon – Fri: 8:30am – 3:30pm
West Warwick 401-822-9210 Mon – Fri: 8:30am – 4:30pm
Westerly 401-348-2522 Mon – Fri: 8:30am – 4:30pm
Woonsocket 401-767-9274 Mon – Fri: 8:30am – 4:30pm

Unrelated business income

Non-profit corporations can generate taxable income by regularly performing a trade or business activity that is not substantially related to its exempt purpose.  An example of unrelated business income would be a Homeowners’ Association that regularly rents their tennis courts to earn additional income.

Unrelated business income over $1,000 must be reported to the IRS and the RI Division of Taxation. Learn more.