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Friends,
I did some checking on several tax comparison sites, to determine if living in MA cost me less than living in RI.
MA has a flat Income tax of 5.3% while RI has a slab structure up to 6%.
Sales tax and House taxes are also higher in RI.
While these websites could be indicative, would like to know from residents of RI if you are paying higher taxes (be it whatever type of tax), considering your net income per year, do you think living in RI is relatively expensive than living in MA?
I've heard that between the higher property taxes in Rhode Island and the higher income taxes in Massachusetts (it's possible to pay more income tax in Rhode Island, but a large majority will pay less based on income), it more or less evens out. Of course, real estate is much cheaper in Rhode Island, which adds up to a lower cost of living overall.
I can tell you this: I've considered jobs in Massachusetts and done the math, and my taxes would absolutely go up by a not-insignificant margin.
Another important thing to consider is the auto tax. It can be very high, depending on what city you live in. Unlike in MA where the rate is set by the state and equal everywhere, RI it's city by city, town by town. Also check for auto insurance quotes, RI can be very high there as well.
Another way to look at it is how far does your money go in each state. According to this analysis it goes further in RI than Massachusetts (or NH or Vermont or CT). So for someone in my situation, where I work in Massachusetts (and get the benefit of their relatively higher wages) but live in RI (where money goes further) the situation is ideal. YMMV.
I think looking at property tax rates alone can be very misleading, unless you have an idea of how much houses go in the communities you are looking at. Rates are generally lowest where valuations are highest. The real damage to your wallet could end up being the same, it all depends
I think looking at property tax rates alone can be very misleading, unless you have an idea of how much houses go in the communities you are looking at. Rates are generally lowest where valuations are highest. The real damage to your wallet could end up being the same, it all depends
Rhode Island and Massachusetts also both have a few very low property tax rate towns. Little Compton, RI is really low. Westport, MA next door is also really low. Ditto Charlestown, RI.
By 495 belt standards, Westport, MA is dirt cheap once you get away from Westport Point and the other waterfront parts of town.
The Massachusetts flat state income tax is 5.1%. Because everyone pays the same rate, there is huge voter pushback on raising it.
Your tax burden depends on how much you make. Comparing the two states, RI has a much lower income tax burden than Massachusetts for lower income people. If you make $200K+, Massachusetts is lower. Rhode Island is also a pretty good deal for lower income retirees. They don't tax Social Security for lower income retirees and, as of 2017, they exclude the first $15,000 of other income. Massachusetts doesn't tax Social Security at all but you'd pay 5.1% on IRA/401(k) distributions and corporate pensions. Most RI seniors won't be paying much RI state income tax.
An objective report by WalletHub ranks Rhode Island 8th highest overall tax burden and Massachusetts 18th. It's an incomplete discussion here though, without asking what you get for your money. Some pay more and get more, some pay less and get less. And of course Rhode Islanders pay more and get less.
You may feel that way Planetoid, but an actual study using data has shown that your money buys you more goods and services in RI than all states but Maine in New England.
Engaging discussion.. thanks to all.
I have been hearing similar conflicting comments - favoring either sides - from my friends circle as well, ofcourse they don't live in RI or MA.. hence reached out to this forum.
Since the income structure in RI is slab based, it is high for higher slabs whereas MI has a flat structure. But there are more towns in MA whose home tax structures are relatively higher than in RI.
So I get that if you get your wages in MA but live in RI - that is the ideal scenario. Hope I got it right.
You may feel that way Planetoid, but an actual study using data has shown that your money buys you more goods and services in RI than all states but Maine in New England.
Thanks for weighing in Mr. Jenkins. I did see the referenced study and I'm more than happy to enter it into evidence. I'd argue that although your wages might purchase marginally more here, with one of the highest tax burdens in the country you'll have relatively much less LEFT of said wages to purchase with. I think much more germane to the discussion is what we receive for our TAX dollars. Deteriorating roads, crumbling bridges and underperforming schools. The question that you should ask of YOURSELF, is where on God's green earth do my tax dollars go? Pay more, get less!
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