Conveyance Tax (Transfer Tax)

The conveyance tax, also called a transfer tax, is a state tax charged when real estate changes hands, and in Rhode Island it is customarily paid by the seller at closing. Rhode Island charges a set rate per unit of sale price (roughly 0.46 percent of the price), so it scales with the value of the home. Massachusetts charges its own version through excise tax stamps. It is a separate line item from property tax, recording fees, and attorney costs. For the current rate and a worked example, see the Rhode Island conveyance tax explained.