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