Closing costs by state
Closing costs in Rhode Island
Closing costs in Rhode Island run about 2% to 5% of the price for a buyer, made of lender fees, title and settlement, recording, prepaid interest and escrow reserves; on a $400,000 home the worked example below comes to $10,055. Rhode Island charges a state transfer tax of $3.75 per $500 of consideration (real estate conveyance tax, R.I.G.L. § 44-25-1, rate effective October 1, 2025; previously $2.30), with an additional $3.75 per $500 on the portion of a residential price above $800,000, about 0.75% of the price, and the seller customarily pays it.
Last verified ·Sources:tax.thomsonreuters.com·news.bloombergtax.com·thelegaldescription.com
The rules
What Rhode Island does differently
- State transfer tax
- $3.75 per $500 of consideration (real estate conveyance tax, R.I.G.L. § 44-25-1, rate effective October 1, 2025; previously $2.30), with an additional $3.75 per $500 on the portion of a residential price above $800,000 (about 0.75% of the price at $400,000).
- Who pays it
- Seller, by custom.
- County and city add-ons
- No municipal conveyance taxes. New Shoreham (Block Island) charges a separate 3% land trust fee on purchases.
- Attorney at closing
- In Rhode Island closings are customarily handled by an attorney rather than a title or escrow company, so budget an attorney fee.
- Owner’s title policy
- The seller customarily pays for the owner’s title insurance policy in Rhode Island; the buyer pays for the lender’s policy.
- Notes
- The 2025 budget act raised the rate; many sites still show $2.30. The statute assigns the tax to the grantor. $3,000 on a $400,000 sale. An attorney must examine title and prepare the deed, though a title company agent may conduct the closing itself.
- tax.thomsonreuters.com — “the real estate conveyance tax is $3.75 (previously, $2.30) for each $500”
- news.bloombergtax.com — “The tax rates will increase to $3.75 from $2.30 per every $500 of consideration paid for real estate transactions”
- thelegaldescription.com — “a non-attorney agent of a title insurance company may conduct a real estate closing in Rhode Island”
Worked example
A $400,000 home in Rhode Island, 20% down
Loan of $320,000 at 6.5%, closing on the 15th. Lender, title and recording figures are typical line items used for illustration, the same on every state page; the transfer tax and the owner’s policy side follow Rhode Island’s rules above. Not a quote: the calculator takes your own figures.
Buyer pays
| Loan origination, 1% of the loan | $3,200 |
| Appraisal | $550 |
| Title and settlement services | $1,800 |
| Lender’s title policy | $900 |
| Recording | $150 |
| Prepaid interest, 15 days at 6.5% | $855 |
| Escrow reserve, 3 months of tax at 1.1% | $1,100 |
| First year of homeowners insurance | $1,500 |
| Total (2.514% of price) | $10,055 |
Seller pays
| Commission, 5% | $20,000 |
| Title and escrow fees | $2,000 |
| Owner’s title policy (estimate) | $1,500 |
| Prorated property tax | $1,500 |
| Transfer tax, seller’s share (0.75%) | $3,000 |
| Total | $28,000 |
Questions
What people ask about Rhode Island
- Who pays the transfer tax in Rhode Island?
- Rhode Island charges a state transfer tax of $3.75 per $500 of consideration (real estate conveyance tax, R.I.G.L. § 44-25-1, rate effective October 1, 2025; previously $2.30), with an additional $3.75 per $500 on the portion of a residential price above $800,000, about 0.75% of the price, and the seller customarily pays it.
- Do you need an attorney to close on a house in Rhode Island?
- In Rhode Island closings are customarily handled by an attorney rather than a title or escrow company, so budget an attorney fee.
- Who pays for the owner’s title policy in Rhode Island?
- The seller customarily pays for the owner’s title insurance policy in Rhode Island; the buyer pays for the lender’s policy.
- How much are seller closing costs in Rhode Island?
- On a $400,000 sale with a 5% commission, the worked example on this page comes to $28,000 for the seller, including $3,000 of transfer tax, before the mortgage payoff and any concessions or repairs. The seller net sheet calculator shows the walk-away figure.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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