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.
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%.
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 |
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.
For a single earner at $100K filing jointly, take-home becomes $80,817 in Rhode Island and $79,023 in Vermont \u2014 a difference of $1,794. The gap remains similar regardless of filing status.
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.