Why Selling a Home in Rhode Island Will Get More Expensive in 2025
Is Rhode Island about to make it more expensive to sell your home? The answer, starting in October 2025, is yes—and by a lot.
If you're a homeowner in Warwick, East Greenwich, Cranston, Coventry, North Kingstown, or anywhere in Rhode Island thinking about selling in the next few years, here's what you need to know about the state's new real estate conveyance tax hike—and how it could cost you thousands more.
What Is the Real Estate Transfer Tax?
The real estate conveyance tax is a professional service fee paid to the state when a property changes hands. In Rhode Island, it’s traditionally paid by the seller, not the buyer.
Until now, the rate was $2.30 per $500 of a property's sale price, or $4.60 per $1,000. For years, that fee helped fund general state revenue and local municipalities.
But that’s about to change—dramatically.
Real Estate Conveyance Tax Increase Starting October 1, 2025
As part of the Rhode Island state budget passed in June 2025, the General Assembly approved a significant increase in the real estate conveyance tax. Effective October 1, 2025, the new tax rates are:
$3.75 per $500 (previously $2.30) or $7.50 per $1,000 of value for all property transactions
An additional $3.75 per $500 for the portion of residential real estate sales above $800,000 (also up from $2.30)
What does this mean for sellers?
Let’s look at the numbers:
*Includes "Tier 2" conveyance tax on the portion above $800,000
If you’re planning to sell a higher-end or luxury property in Rhode Island, the additional fees become even more substantial.
The "Tier 2" Penalty Gets Worse
Homes sold above $800,000 already had a second, higher-tier tax rate. Starting in October of 2025, that rate doubles as well—adding another $7.50 per $1,000 on the portion of the sale price above $800,000.
A $1 million home sale, for instance, will incur $9,700 in conveyance tax under the new rules—up from $6,220 today.
And yes, it's still the seller who pays.
Why This Matters in a Tight Rhode Island Housing Market
Rhode Island is already in the midst of a severe housing shortage. Home listings are hovering at just one-third of pre-pandemic levels. Supply is low, affordability is strained, and competition is fierce.
Raising the cost of selling could make things worse.
"We should be finding ways to encourage mobility, not penalize it," said Nick Slocum, team leader of the Slocum Home Team. "This increase adds another barrier for homeowners who want to move but are already grappling with high mortgage rates, rising prices, and limited inventory."
Many homeowners have been reluctant to list their homes due to higher borrowing costs. Now, they’ll have one more reason to stay put.
A Tax on Mobility
The transfer tax doesn’t just affect investors or luxury sellers. For downsizers, empty nesters, and retirees in Cranston, Warwick, and East Greenwich looking to move to a smaller home, that tax increase could become a deal-breaker.
Add in the rising cost of staging, moving, legal fees, and inspections, and you’ve got a tax structure that discourages natural movement in the market.
Who Benefits From the New Tax?
According to the Rhode Island House of Representatives, the increased revenue is expected to help fund homelessness services and affordable housing initiatives.
In fact, the budget doubled Governor McKee’s original proposed allocation from $4 million to $8.5 million for these programs.
While many agree that funding affordable housing is important, the method of raising that money—on the backs of sellers—is what’s drawing concern from the real estate community.
"We all support solving housing challenges," added Nick Slocum. "But we need solutions that don’t make it harder for the average Rhode Island homeowner to make their next move."
What Sellers in Warwick and Rhode Island Should Do Now
If you’re even considering selling your home in the next 12 to 24 months, don’t wait to start planning.
Here are five smart steps to take:
1. Get a Home Valuation Now
Understand what your home is worth in today's market. A Slocum Home Team agent can give you a complimentary valuation.
2. Plan Your Timing Strategically
If you're on the fence, you may want to sell before October 1, 2025 to avoid the new conveyance tax.
3. Explore Tax Planning Options
Talk to your CPA about whether professional service fees like the conveyance tax can be deducted from your capital gains.
4. Consult a Warwick Realtor You Trust
You need someone who knows the local market and can help you net the most from your sale—even with increased fees. That’s where Nick Slocum or one of The Slocum Home Team’s top agents comes in.
5. Don’t Wait to Prep Your Home
Repairs, upgrades, decluttering—start now so you're ready to hit the market at the optimal time.
How the Slocum Home Team Helps Sellers Navigate Market Changes
At Slocum, we treat every home like a castle, and every client like gold. Whether you’re selling a modest condo in Coventry or a luxury estate in East Greenwich, our approach is the same:
Strategic pricing based on local market data
Expert guidance through inspections, appraisals, and negotiations
Customized marketing to attract qualified buyers
Clear communication every step of the way
We know the Rhode Island real estate market. And we know how to get you to the closing table with confidence—even as the rules change.
Bottom Line
Selling a home in Rhode Island is about to cost more in 2025. But with the right timing, strategy, and expert Realtor on your side, you can still maximize your sale.
Whether you're moving across Warwick or out of state, don't let a tax hike catch you off guard.
Let Nick Slocum and The Slocum Home Team help you sell smart.
