Understanding Pay and Taxes in Rhode Island (2025 Guide)
By Team SalaryCalculate · 6/18/2025
If you live or work in Rhode Island, it's essential to understand how your income is taxed — and how that affects your take-home pay. Whether you're evaluating a job offer, budgeting for the year, or preparing for tax season, this guide breaks down everything you need to know about pay and income taxes in Rhode Island in 2025.
| Taxable Income (Single Filers) | Tax Rate |
| Up to $73,450 | 3.75% |
| $73,451 to $166,950 | 4.75% |
| Over $166,950 | 5.99% |
💡 Married filing jointly uses the same brackets, just doubled. For example, the first $146,900 is taxed at 3.75%.
Rhode Island uses federal adjusted gross income (AGI) as a starting point, but may apply specific state-level deductions and exemptions.
💰 Payroll Taxes in Rhode Island
Beyond state income tax, Rhode Island workers are subject to standard federal payroll taxes, as well as some state-level withholdings:
🔹 Federal Payroll Taxes (2025)
- Social Security: 6.2% (on income up to $168,600)
- Medicare: 1.45% (no cap)
- Additional Medicare: 0.9% (for income over $200k)
🔹 Rhode Island-Specific Payroll Deductions
- Temporary Disability Insurance (TDI): 1.2% (on first $87,000 of income)
- State Unemployment Insurance (SUI): Paid by employers; not deducted from your paycheck.
🧠 TDI is a short-term wage replacement benefit — unique to RI and a few other states.
🏡 Cost of Living and Take-Home Pay in Rhode Island
While Rhode Island’s cost of living is higher than the national average, it's significantly more affordable than neighboring states like Massachusetts or Connecticut.
🏙 Average Salaries (2025 Estimates)
- Software Developer: $94,000
- Registered Nurse: $78,000
- Teacher: $66,000
- Retail Manager: $54,000
💸 Example: $80,000 Salary in Rhode Island
Here’s a simplified breakdown for a single filer with no dependents:
| Component | Amount |
| Gross Salary | $80,000 |
| Federal Income Tax | ~$9,200 |
| Social Security + Medicare | ~$6,120 |
| RI State Tax | ~$3,000 |
| RI TDI | ~$960 |
| Estimated Take-Home Pay | ~$60,720 |
📉 That’s roughly 76% take-home, or about $5,060 per month.
Use our Rhode Island Net Salary Calculator to personalize your take-home pay estimate.
🏠 Housing and Living Costs in RI
🏘 Median Housing Costs (2025)
- 1-Bedroom Apartment (Providence): ~$1,550/month
- 2-Bedroom Suburban Rental: ~$1,900/month
- Median Home Price: ~$410,000
📊 Other Monthly Expenses
- Utilities: $150–200
- Food/Groceries: $350–600
- Transportation: $100–300 (more if commuting to Boston)
🧮 Rhode Island vs. Neighbouring States
| State | Top Tax Rate | TDI/Other Deductions | Cost of Living |
| Rhode Island | 5.99% | TDI (1.2%) | Moderate |
| Massachusetts | 5.0% (flat) | PFML (0.88%) | Higher |
| Connecticut | 6.99% | No TDI | Higher |
| New Hampshire | 0% (wages) | No TDI | Lower taxes, but fewer public services |
💡 RI strikes a balance: taxes are moderate, but you gain access to coastal living, good schools, and proximity to Boston.
📅 Filing Taxes in Rhode Island
- Deadline: April 15, 2025 (same as federal)
- E-file Options: Rhode Island supports free e-filing for most residents via RI Division of Taxation.
- Property Tax Credits: If you own a home, check for local rebates or circuit breaker programs.
✅ Final Thoughts
Living and working in Rhode Island means:
- A reasonable state tax rate
- Short-term disability insurance (TDI) that reduces take-home pay slightly
- Manageable living costs compared to neighbouring states
- Strong quality of life, especially in Providence and coastal communities
Whether you're evaluating a job offer or planning your financial year, it's critical to look beyond your gross salary and calculate your actual take-home pay after taxes and deductions.
🔍 Need Help Estimating Your Net Pay?
Use our Rhode Island Calculators to get a personalized view of your monthly income after all state and federal taxes.