If you own a rental property in Newport, Rhode Island, you may be eligible for significant property tax savings by renting your property on a year-round basis.

The City of Newport offers a reduced residential property tax rate not only to owner-occupied homes but also to qualifying annual rental properties.

How Much Could You Save?

For the 2026–2027 tax year, Newport’s residential property tax rates are:

  • Owner-Occupied & Qualifying Annual Rentals: $7.177 per $1,000 of assessed value.
  • Non-Owner-Occupied / Nonqualifying Rentals: $9.494 per $1,000 of assessed value.

For a property assessed at $800,000, that’s a potential savings of $1,853.60 per year!

How Do Rental Properties Qualify?

To be eligible for the lower tax rate, rental properties generally must meet the following requirements:

  • The property contains three or fewer rental units.
  • All rental units are occupied by year-round residents.
  • Tenants have written leases with terms of at least 12 months.
  • The owner completes the required application and provides supporting documentation to the City of Newport.

Important: The reduced rate is not automatic. Property owners should confirm their eligibility and application requirements with the Newport Tax Assessor’s Office.

Why This Matters for Landlords

For Newport property owners, choosing between annual and seasonal rentals involves more than comparing monthly rental income.

While seasonal rentals may generate higher rental rates during the summer months, annual rentals can provide additional financial advantages, including:

  • Lower property taxes for qualifying properties.
  • Consistent monthly rental income.
  • Reduced tenant turnover and vacancy periods.
  • Fewer seasonal turnovers and associated expenses.

When evaluating your property’s rental potential, it’s important to consider the overall annual return—not just the monthly rental rate.

We’re Here to Help!

At Warner Realty Group, we help Newport property owners evaluate annual and seasonal rental opportunities to maximize their investment potential.

If you’re considering transitioning your property to an annual rental or would like to discuss current rental market conditions, we’re happy to help!