State Comparison
Massachusetts vs Rhode Island
Side-by-side comparison of 16 financial metrics using documented public datasets and estimates, with sources listed below.
Overall Score
Cost of Living
Housing
Taxes
Income & Employment
Business
Insurance & Living
Key Takeaways
- 1
Rhode Island leads in 8 of 16 financial metrics, making it the more favorable state overall.
- 2
Housing: Median home prices are $673,000 in Massachusetts vs $517,000 in Rhode Island — a $156,000 difference.
- 3
Taxes: Massachusetts has a 9% top income tax rate while Rhode Island has a 5.99% top rate. Property tax rates are 1% vs 1.12%.
- 4
Cost of Living: Massachusetts's index is 147.8 and Rhode Island's is 111.2 (national average = 100).
Run the Numbers
Use our free calculators with real Massachusetts and Rhode Island data to model your specific scenario.
Frequently Asked Questions
Is Massachusetts or Rhode Island more affordable?
Rhode Island has a lower cost of living index (111.2) compared to Massachusetts (147.8), where 100 is the national average. However, affordability depends on your specific situation — compare housing, taxes, and income together for a complete picture.
Which state has lower taxes — Massachusetts or Rhode Island?
It depends on what you earn, spend, and own — the three rates below apply to different bases (income, purchases, and home value), so they cannot be added into a single burden figure. On the headline rates alone, Rhode Island is lower on more of them. Massachusetts has a 9% top income tax, 6.25% state sales tax, and a 1% effective property tax rate. Rhode Island has a 5.99% top income tax, 7% state sales tax, and a 1.12% effective property tax rate.
What are housing costs in Massachusetts vs Rhode Island?
The typical home value in Massachusetts is $673,000 compared to $517,000 in Rhode Island (Zillow Home Value Index, June 2026). For renters, HUD's FY2026 Fair Market Rent for a 2-bedroom unit — the 40th-percentile gross rent, not an average — is $2,527/month in Massachusetts vs $1,765/month in Rhode Island.
Which state is better for starting a business — Massachusetts or Rhode Island?
LLC filing costs are $500 in Massachusetts vs $150 in Rhode Island, with annual fees of $500 and $50 respectively. Massachusetts's 9% top tax rate compared to Rhode Island's 5.99% rate may also factor into your decision.
Should I move from Massachusetts to Rhode Island?
It depends on your priorities. Rhode Island wins in 8 of 16 metrics we compared. Use our free calculators to model your specific financial scenario — including salary, property tax, and cost of living for each state.
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Related Comparisons
Comparing Massachusetts and Rhode Island
When deciding between living in Massachusetts or Rhode Island, the financial picture goes beyond just one metric. This comparison analyzes 16 key financial indicators drawn from the U.S. Census Bureau (American Community Survey), the Tax Foundation, HUD Fair Market Rents, Zillow's Home Value Index, the NAIC's insurance databases, the U.S. Department of Labor, C2ER's Cost of Living Index, and state agencies, to give you a comprehensive overview.
Massachusetts (MA) has a median household income of $104,828 with a cost of living index of 147.8. Rhode Island (RI) has a median household income of $83,504 with a cost of living index of 111.2. Income figures are Census ACS 1-year estimates (table B19013, 2024); the cost-of-living index is C2ER's Q1 2026 survey via MERIC, where 100 is the national average of surveyed cities.
These numbers are estimates. Individual circumstances vary based on location within each state, family size, profession, and lifestyle. Use our free Massachusetts calculator or Rhode Island calculator to model your specific financial scenario.
Sources per metric are named in each row's note above. Last reviewed . Some values are estimates; consult a qualified professional for financial advice.