Cost of Living in Rhode Island
Things cost about the same here as the national average.
What Things Cost in Rhode Island
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Rhode Island is the smallest state but packs a full New England experience into a space you can drive across in under an hour. Providence has emerged as a creative city with excellent restaurants, a respected art school (RISD), and a waterfront that has been revitalized. Newport's coastal mansions and sailing culture are iconic. The cost of living is about 12% above the national average, driven by utilities and housing, but is more affordable than neighboring Massachusetts and Connecticut. For people who want New England life at a moderate (by New England standards) price, Rhode Island delivers.
Rhode Island at a Glance
Taxes in Rhode Island
Rhode Island's state income tax tops out at Up to 5.99%. The combined sales tax averages 7%. Property taxes run about 1.24% of home value, which on a $380,000 median home means roughly $4,712/year.
Cities in Rhode Island
Ranked from least to most expensive. Index 100 = national average.
Explore Rhode Island
FAQ About Rhode Island
Rhode Island is about 12% above the national average, which makes it moderate for New England. It is cheaper than Massachusetts and Connecticut but pricier than most non-coastal states. Providence has median home prices around $413,800. Newport is more expensive. The 7% sales tax and above-average property taxes add to the cost. For someone coming from Boston or New York, Rhode Island feels like a bargain.
Providence has become one of the most underrated small cities in the Northeast. The food scene is nationally recognized, the arts community (fueled by RISD and Brown University) is vibrant, and the city has a walkable downtown with real character. Housing is more affordable than Boston or any comparable New England city. The main drawbacks are a smaller job market and winter weather.
Rhode Island has a graduated income tax with three brackets: 3.75%, 4.75%, and 5.99%. The top rate applies to income above $166,950. Combined with a 7% sales tax and property taxes averaging about 1.40%, the overall tax burden is moderate for New England but above the national average.