Rhode Island vs Vermont:
Take-Home Pay Comparison
Side-by-side tax comparison between Rhode Island (5.99% top rate, graduated) and Vermont (8.75% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Tax Structure: Rhode Island vs Vermont
Rhode Island uses a graduated income tax (3.75-5.99%) while Vermont has a graduated system (3.35-8.75%). On a $100K salary, Rhode Island takes $3,894 in state and local taxes compared to Vermont’s $5,688 \u2014 a difference of $1,794.
Both states use graduated brackets, but Vermont’s top rate of 8.75% is higher than Rhode Island’s 5.99%.
Take-Home at Every Salary Level
Rhode Island wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | Rhode Island | Vermont | Difference | Winner |
|---|---|---|---|---|
| $40K | $32,763 | $32,045 | −$718 | Rhode Island |
| $50K | $40,408 | $39,511 | −$897 | Rhode Island |
| $60K | $48,054 | $46,978 | −$1,076 | Rhode Island |
| $75K | $58,617 | $57,272 | −$1,346 | Rhode Island |
| $100K | $75,232 | $73,438 | −$1,794 | Rhode Island |
| $120K | $88,523 | $86,370 | −$2,153 | Rhode Island |
| $150K | $107,911 | $105,220 | −$2,691 | Rhode Island |
| $200K | $141,100 | $137,512 | −$3,588 | Rhode Island |
| $250K | $173,530 | $169,045 | −$4,485 | Rhode Island |
| $300K | $203,648 | $198,266 | −$5,382 | Rhode Island |
Cost of Living: Rhode Island (105) vs Vermont (105)
Take-home pay only tells part of the story. Rhode Island has a cost of living index of 105 while Vermont is at 105 (national average = 100).
With similar costs of living (105 vs 105), the tax difference is the primary factor. What you see in raw take-home pay is essentially what you get in purchasing power: $71,649 in Rhode Island vs $69,940 in Vermont.
Married Filing Jointly: How It Changes the Comparison
For a single earner at $100K filing jointly, take-home becomes $81,416 in Rhode Island and $79,898 in Vermont \u2014 a difference of $1,518. The gap narrows under married filing, as the wider brackets reduce the tax bite in both states.
Should You Move from Vermont to Rhode Island?
On paper, moving from Vermont to Rhode Island would save $1,794/year on a $100K salary, or $8,970 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $1,794/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.