State comparison
Indiana vs Rhode Island: which state is better to live in?
Indiana costs a median household about $4,500 a year less in state and local taxes than Rhode Island, mostly because property tax on a median home runs $1,704 a year against $5,590 in Rhode Island.
Indiana
Moderate tax burden · COL index 87
Wins 9 categories
Rhode Island
High tax burden · COL index 114
Wins 6 categories
Taxes: Indiana vs Rhode Island
Indiana has a flat 3.05% income tax, which works out to 3.0% on a median income of $74,580, or $2,200 a year. Rhode Island has a graduated income tax topping out at 5.99%, which works out to 3.8% on a median income of $74,580, or $2,797 a year. Indiana wins on income tax at 2026 rates.
Property tax is 0.71% of home value a year in Indiana and 1.30% in Rhode Island (Tax Foundation, 2023); on each state's median home that is $1,704 against $5,590, so Indiana has the lower rate.
Combined state and local sales tax averages 7.00% in Indiana and 7.00% in Rhode Island; the two match.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $5,470 a year in Indiana, $9,953 in Rhode Island. Indiana is cheaper on total state and local tax.
Housing and cost of living
Indiana's cost of living index is 87 and Rhode Island's is 114, where 100 is the national average; Indiana is about 31% cheaper day to day.
The median home costs $240K in Indiana and $430K in Rhode Island (Zillow, 2024), a $190K gap in Indiana's favor. A two-bedroom rents for about $1,100 a month in Indiana and $1,800 in Rhode Island.
Home insurance averages $1,500 a year in Indiana and $1,400 in Rhode Island, so Rhode Island is cheaper to insure.
Safety
Violent crime runs 396 incidents per 100,000 residents in Indiana and 237 in Rhode Island (FBI Crime Data Explorer, 2023); Rhode Island is the safer state by that measure, with a rate 67% lower. Property crime is 1,767 per 100,000 in Indiana against 1,527 in Rhode Island, again favoring Rhode Island.
Health
Life expectancy is 75.5 years in Indiana and 78.1 in Rhode Island (County Health Rankings, 2024), a 2.6-year edge for Rhode Island. The Commonwealth Fund's 2023 scorecard ranks Indiana's health system 42nd of 50 and Rhode Island's 4th, so Rhode Island scores better on care.
8.9% of Indiana residents have no health insurance against 4.7% in Rhode Island, which favors Rhode Island. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Indiana's K-12 schools 27th in the country and Rhode Island's 13th, 14 places apart in Rhode Island's favor. Indiana runs a school-choice voucher program; Rhode Island does not.
Laws and politics
In the 2024 presidential election Indiana went to Trump by 19 points and Rhode Island went to Harris by 17 points.
Indiana has permitless carry and a Giffords gun-law grade of F; Rhode Island has may-issue carry permits and a grade of B, so Rhode Island regulates guns more tightly and Indiana is the friendlier state for gun owners.
Abortion is banned with narrow exceptions in Indiana and protected by state law in Rhode Island, and marijuana is illegal in Indiana and legal for adults in Rhode Island as of 2026. The minimum wage is $7.25 an hour in Indiana and $14.00 in Rhode Island.
Climate and risk
Natural disaster risk is moderate in Indiana (tornado, flood) and moderate in Rhode Island (hurricane, nor-easter, flood). Annual average air quality index is 48 in Indiana and 32 in Rhode Island (under 50 is good), favoring Rhode Island.
Tax figures use a household earning the national median income and owning each state's median home, at tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
9
Indiana
6
Rhode Island
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Score For My Profile →Questions people ask
Is Indiana or Rhode Island better to live in?
It depends on what you weigh most. Indiana on taxes ($5,470 a year for a median household against $9,953); Indiana on everyday costs (index 87 against 114); Rhode Island on safety (237 violent crimes per 100,000 against 396); Rhode Island on schools (ranked 13th against 27th).
Which is cheaper, Indiana or Rhode Island?
Indiana is cheaper day to day: cost of living index 87 against 114. The median home is $240K in Indiana and $430K in Rhode Island (2024). On state and local taxes Indiana saves a median household about $4,500 a year.
Does Indiana or Rhode Island have lower taxes?
Indiana. A household earning $74,580 pays about $5,470 a year in Indiana ($2,200 income tax, $1,704 property tax on the median home and $1,566 in sales tax) and $9,953 in Rhode Island ($2,797 income tax, $5,590 property tax on the median home and $1,566 in sales tax), at 2026 rates.
Which is safer, Indiana or Rhode Island?
Rhode Island, on the FBI's 2023 figures. Violent crime is 396 per 100,000 residents in Indiana and 237 in Rhode Island; property crime is 1,767 against 1,527.
Which has better schools, Indiana or Rhode Island?
Rhode Island. Education Week's 2023 Quality Counts report ranks Indiana 27th of 50 for K-12 and Rhode Island 13th. Indiana also offers school-choice vouchers.
Is Indiana or Rhode Island better for retirees?
Indiana is friendlier to retirees on paper. Indiana does not tax Social Security, partly exempts pensions and has no estate or inheritance tax; Rhode Island taxes Social Security, partly exempts pensions and has an estate tax. Property tax on a median home is $1,704 a year in Indiana and $5,590 in Rhode Island.