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Rhode Island: minimum wage, income tax and cost of living

Rhode Island in numbers: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for a budget.

Updated: October 11, 2026

What it costs to live and work in Rhode Island: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.

Rhode IslandSource
Minimum wage$16.00 an hourUS Department of Labor, Wage and Hour Division: State Minimum Wage Laws
State income tax3.75 % to 5.99 %Tax Foundation: State Individual Income Tax Rates and Brackets, 2026
State sales tax7 %Tax Foundation: State and Local Sales Tax Rates, 2026 (rates as of January 1, 2026)
Median gross rent$1,418 a month (2024)US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 Median Gross Rent (Dollars), by state

Rhode Island's minimum wage is $16.00 an hour in 2026.

Three rates from 3.75 % to 5.99 %; the top rate applies to single filers' taxable income over $186,450.

The state sales tax is 7 %, with no local sales taxes.

What income does rent in Rhode Island take?

A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $1,418 a month, that means a household income of about $56,700 a year before tax.

Work out your take-home pay

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