If you’re wondering, “How do I figure out how much money I take home in Rhode Island” we’ve got you covered.
Use our simple paycheck calculator to estimate your net or “take home” pay after taxes, as an hourly or salaried employee in Rhode Island.
Paycheck Calculator
Disclaimer: Please note that this paycheck calculator is designed to provide an estimate and should not be considered as professional tax advice. The actual withholding amounts and taxes owed may vary depending on individual circumstances and other factors. For accurate and personalized tax advice, we recommend consulting with a tax professional.
If your gross pay is 0 per - in the state of F, your net pay (or take home pay) will be $1,343.17 after tax deductions of 0% (or $ 156.83). Deductions include a total of [1] 0% (or $0.00) for the federal income tax, [2] 0% (or $0.00) for the state income tax, [3] 6.20% (or $0.00) for the social security tax and [4] 1.45% (or $0.00) for Medicare.
The Federal Income Tax is collected by the government and is consistent across all U.S. regions. In contrast, the State Income Tax is levied by the state of residence and work, leading to substantial variations. The Social Security Tax is used to fund Social Security, which benefits retirees, persons with disabilities and survivors of deceased workers. Medicare involves a federal payroll tax designated for the Medicare insurance program. As of 2022, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not levy a state income tax.
How Does the Paycheck Calculator Work?
Input your salary information, such as wage and pay frequency, and our tool will handle the tax calculations for you. Once you’ve filled in all the information, click the “Calculate Tax” button, and the calculator will provide an estimate of your net or “take home” pay for the specified pay period.
Overview of Rhode Island Taxes
The Rhode Island economy historically had a foundation in fishing and played a significant role in the American Industrial Revolution, with Slater Mill in Pawtucket considered its birthplace in 1793.
Today, Rhode Island’s economy is primarily service-based, particularly in healthcare and education, alongside some manufacturing activities like nuclear submarine construction.
In 2019, Rhode Island’s unemployment rate stood at 3.5%, but it spiked to 18.1% during the COVID-19 pandemic in April 2020.
If you decide to start a new job in the “Ocean State”, here’s what to expect tax-wise.
Rhode Island utilizes a progressive state income tax system with three tax brackets, and the tax rates vary by income level, ranging from 3.75% to 5.99%.
These brackets apply uniformly to all taxpayers, regardless of their filing status. Employees have 6.2% of their wages withheld for Social Security tax and 1.45% for Medicare tax, with employers matching these contributions.
However, if you are a self-employed individual, you will be responsible for paying the full FICA contribution.
If earning over $200,000, there is an additional 0.9% Medicare surtax, not matched by employers.
Rhode Island’s tax situation, with its progressive income tax system and no local income taxes, can be seen as moderately favorable, but the specific favorability depends on individual income levels and financial circumstances.
Median Household Income in Rhode Island
Salary in each state is typically based on the cost of living. While salaries vary widely based on position, the median household income in your state can give you a glimpse at the average salary a household is earning in your region.
| Year | Median Household Income |
|---|---|
| 2021 | $74,008 |
| 2020 | $70,305 |
| 2019 | $71,169 |
| 2018 | $64,340 |
| 2017 | $63,870 |
| 2016 | $60,596 |
| 2015 | $58,073 |
| 2014 | $54,891 |
| 2013 | $55,902 |
| 2012 | $54,554 |
| 2011 | $53,636 |
In 2021, the median household income reached its highest point at $74,008, marking a significant increase from the previous year, which saw a median income of $70,305.
However, in 2020, there was a slight dip, possibly due to the economic impact of the COVID-19 pandemic, before the notable surge in 2021.
In conclusion, the data reveals a positive trend in median household income over the decade, with a substantial increase in 2021.
Tips for Maximizing Your Paycheck
Here are some tips to help you maximize your paycheck:
- Become familiar with your payroll deductions
- Understand techniques for reducing your tax
- Fully utilize your work-related perks
- Develop a financial plan and define financial goal
- Look into additional income through extra hours or performance incentives
- Regularly check your pay stubs for inaccuracies
For a better understanding, check out our guide on how to keep more of your paycheck.