Rhode Island Guide for Canadians

Quick Facts

State Income Tax	Progressive 3.75% to 5.99%
Sales Tax	7% state sales tax
Driver's License Grace Period	30 days for residents
Residency Requirement for Tax	Rhode Island domicile or statutory residency
Vehicle Registration Deadline	30 days after establishing residency
REAL ID Deadline	May 7, 2025 for domestic flights
Enhanced Driver's License	Not available

First 90 Days Checklist

Week 1-2: Essential Documents & Registration

• Register with USCIS if staying 30+ days (required by April 11, 2025)
• Gather required documents for driver's license
• Open US bank account
• Set up Rhode Island mailing address

Week 3-4: Official Registration

• Apply for Rhode Island driver's license (within 30 days)
• Complete knowledge test, vision screening, and road test
• Begin vehicle registration process (within 30 days)
• Register to vote (if eligible)

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Complete vehicle registration and titling
• Establish Rhode Island ties and connections
• Research healthcare options and insurance

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents:

• Valid unexpired foreign passport with valid U.S. entry marking
• Proof of legal presence/identity documentation
• Social Security Number document or proof of non-work status exemption
• Two proofs of Rhode Island residency with current address

Testing Requirements:

• Knowledge test required for all new applicants
• Vision screening required
• Road skills test required - Rhode Island does not accept foreign licenses
• Must apply for Instruction Permit first if from out-of-country

REAL ID Option:

• Available for qualifying non-citizens with proper documentation
• Required for domestic air travel after May 7, 2025
• Enhanced Driver's License not available in Rhode Island
• Passport required for international travel

Important Notes:

• 30-day limit to get Rhode Island license after establishing residency
• Out-of-country residents must start with Instruction Permit
• Must present original documents - no copies accepted
• DMV appointments recommended for faster service

Vehicle Registration

• Register within 30 days of establishing residency
• Must obtain Rhode Island title before registration
• Registration fees based on vehicle weight and value
• Rhode Island insurance required for registration
• Annual registration renewal required

Tax & Residency Considerations

Rhode Island State Tax Structure

• **Progressive income tax** rates from 3.75% to 5.99%
• **Sales tax** 7% state rate (higher than many states)
• **Property taxes** above national average (effective rate around 1.3%)
• **Estate tax** applies to estates over $1.7 million
• **Business taxes** include corporate income tax of 7%

Establishing Rhode Island Tax Residency

Rhode Island residency is based on domicile or statutory presence:

• Domiciled in Rhode Island (intent to make permanent home)
• Statutory resident rules for tax purposes
• Rhode Island driver's license and voter registration help establish domicile
• Standard deduction available for residents

Documentation to Establish Residency

• Rhode Island driver's license and voter registration
• Bank accounts and utility bills in Rhode Island
• Employment or business activities in Rhode Island
• Property ownership or long-term lease agreements
• Professional licenses and club memberships

Tax Considerations

Rhode Island has moderate income tax rates but higher sales tax and property tax rates compared to neighboring states. The small size means easy access to amenities but limited tax advantages.

Higher Tax Burden

Rhode Island's combined state and local tax burden is among the higher in New England. The 7% sales tax and above-average property taxes can significantly impact cost of living.

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
New Requirement: Canadians staying 30+ days must register with USCIS by April 11, 2025.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• Rhode Island has expanded Medicaid with broader eligibility
• Travel insurance strongly recommended for temporary residents
• Consider US health insurance if staying permanently
• Excellent medical facilities in Providence and surrounding areas

Prescription Medications

• Bring adequate supply from Canada
• Understand prescription transfer requirements
• US prices often higher than Canadian prices
• Good pharmacy coverage throughout the small state

Healthcare Access

• High-quality healthcare facilities despite small size
• Close proximity to Boston medical centers
• Lifespan and Care New England are major health systems
• Good specialist availability in Providence area

Special Considerations for Snowbirds

New US Registration Requirements (2025)

• Canadians staying 30+ days must register with USCIS
• Registration required by April 11, 2025
• Print and carry latest I-94 as proof of legal entry
• Failure to register may affect future US travel

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons (183-day rule)
• Maintain Canadian insurance & banking relationships
• Rhode Island's small size makes establishing ties straightforward

Property Considerations

• Coastal property commands premium prices
• Higher property tax rates than many states
• Limited inventory due to small state size
• Impact on Canada's principal residence exemption

Climate & Lifestyle Factors

• Four-season New England climate with cold winters
• Coastal location provides beautiful beaches and water activities
• Rich historical and cultural heritage
• Small state size means short commutes and travel times

Geographic Advantages

• Strategic location between Boston and New York
• Easy access to major airports (Boston Logan, Bradley)
• No direct border with Canada - nearest crossing in New York
• Excellent highway and rail connections

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier border crossings
• Enhanced Driver's License not available in Rhode Island
• I-94 registration now required for 30+ day stays

New England Charm

Rhode Island offers classic New England charm with beautiful coastlines, rich history, and proximity to major cities. The Ocean State provides a unique blend of coastal living and urban amenities in America's smallest state.

High Cost of Living

Rhode Island has a high cost of living with expensive housing, higher taxes, and limited space. The small size means fewer housing options and higher competition for desirable properties.

Key Contacts & Resources