With a 5.99% top income tax rate and 1.4% property tax, Rhode Island homeowners face a moderate combined tax burden. This calculator is pre-filled with Rhode Island numbers: $425,000 median price, 1.4% property tax, $1,650/year insurance.
Last updated: March 13, 2026
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Monthly Payment (Rhode Island)$0
Loan Details — Rhode Island
Rhode Island median: $425,000
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Below 20% triggers PMI on conventional loans
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Average 30-year fixed ~6.75% (March 2026)
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Rhode Island average: 1.4%
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Rhode Island average: $1,650/yr
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Principal & Interest
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Property Tax
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Rhode Island Metro Area Home Prices
Click a metro to load its median price into the calculator above.
Yearly Amortization Schedule+
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Rhode Island's Tax Landscape and Your Mortgage
Rhode Island uses a progressive income tax with a top rate of 5.99%. A household earning $150,000 pays an estimated $5,840-$7,637 in state income tax, depending on filing status and deductions. That's $562/month less available for housing costs.
At the state's median home price of $425,000, the $1.4% property tax rate adds $496/month to your mortgage payment. That's $5,950/year — well above the national median of ~1.1%.
Property Taxes Across Rhode Island
The 1.4% statewide average masks significant variation. High property taxes for a small state
Price ranges across the state: Providence has a median of $415,000, while Warwick/Cranston sits at $385,000 — a $30,000 gap that dramatically changes your monthly payment. At $1.4% property tax, that price difference alone means $35/month more in property tax in Providence.
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Homebuyer Programs and Exemptions
Rhode Island offers several programs for homebuyers:
RIHousing FirstHomes program with below-market rates
Down payment assistance up to 7% of purchase price
Homestead exemption: Varies by municipality — most offer some form of homestead exemption or tax freeze for seniors
Rhode Island-Specific Considerations
High property taxes for a small state
Home prices have risen sharply — limited housing supply
No local income taxes
Real estate transfer tax is minimal (state conveyance tax of $2.30 per $500)
Property tax rates vary by municipality — Cranston and Warwick differ from Providence and Newport
Compare Rhode Island Mortgage Rates
See personalized rates from Rhode Island lenders. LendingTree matches you with up to 5 offers so you can compare and save.
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Frequently Asked Questions
What is the average property tax rate in Rhode Island?
The average effective property tax rate in Rhode Island is 1.4%. On a $425,000 home (the state median), that works out to approximately $5,950/year or $496/month added to your mortgage payment. Property tax rates vary by county and school district within Rhode Island — always check your specific jurisdiction's rate. Homestead exemption: Varies by municipality — most offer some form of homestead exemption or tax freeze for seniors
How much does homeowners insurance cost in Rhode Island?
The average annual homeowners insurance premium in Rhode Island is approximately $1,650 ($138/month). This is near the national average of approximately $1,500/year. Actual premiums depend on your home's location, age, construction type, and coverage limits.
What first-time homebuyer programs are available in Rhode Island?
RIHousing FirstHomes program with below-market rates. Down payment assistance up to 7% of purchase price. These programs typically have income limits, purchase price caps, and may require homebuyer education courses. Check the Rhode Island housing finance agency website for current eligibility requirements and application deadlines.
How does Rhode Island's 5.99% income tax affect home affordability?
Rhode Island's top income tax rate of 5.99% reduces your take-home pay, which affects how much mortgage you can comfortably carry. On a $150,000 salary, state income tax takes roughly $5,840-$7,637/year (effective rate is lower than the top marginal rate). Combined with 1.4% property tax, the total tax burden in Rhode Island is above average. Use our paycheck calculator to see your exact take-home pay.
What is the conforming loan limit in Rhode Island?
The 2026 conforming loan limit in Rhode Island is $806,500. Loans above this amount are considered jumbo loans and typically carry higher interest rates (0.25-0.5% premium), require larger down payments (10-20%), and have stricter qualification requirements including higher credit scores (700+) and lower debt-to-income ratios.
This calculator is for educational purposes. Tax rates and insurance costs are based on Rhode Island state averages and may not reflect your specific county, school district, or municipality. Consult a financial professional for advice specific to your situation.