Retire in Rhode Island: Cost, Taxes & FIRE Number for 2026
Retiring in Rhode Island costs about $64,000 a year on average, earning a D retirement tax grade and a #17 healthcare ranking. Here's the full breakdown — cost, taxes, and how much you actually need saved.
What It Costs to Retire in Rhode Island
The average retiree in Rhode Island spends about $64,000 a year ($5,333/month), based on BLS spending data for households 65 and older, adjusted for Rhode Island's cost of living. That works out to a standard retirement number of $1,600,000 under the 4% rule, or $1.83M for early retirees using the more conservative 3.5% FIRE withdrawal rate.
How the numbers below are calculated:
Annual cost = BLS Consumer Expenditure Survey 2024 (65+ household spending) × Rhode Island's cost-of-living index (MERIC Q3 2025).
Standard Retirement Number = Annual Cost ÷ 0.04 (4% rule, ~30-year horizon)
FIRE Number = Annual Cost ÷ 0.035 (3.5% rule, 40–50+ year horizon for early retirees)
Rhode Island earns a D retirement tax grade from Plootus Research and ranks #17 of 50 states for healthcare quality. Combined with an average annual salary of $65,660 for working residents (median $53,920), that gives a fuller picture of what building — and eventually spending down — a nest egg looks like here.
Rhode Island Retirement at a Glance
| Average annual retirement cost | $64,000/yr ($5,333/mo) |
| Standard Retirement Number (4% rule) | $1,600,000 |
| FIRE Number (3.5% SWR) | $1.83M |
| Retirement Tax Grade | D |
| State Income Tax | 5.99% max |
| Social Security Tax | ⚠️ Caution |
| Healthcare Quality Rank | #17 of 50 |
| FIRE-Friendliness Rating | ★★☆☆☆ |
| Avg. Annual Salary (working residents) | $65,660 |
| Median Annual Salary (working residents) | $53,920 |
Sources: BLS CES 2024 (65+); MERIC Q3 2025; BLS OEWS May 2024; Plootus Research 2026.
Your Rhode Island-Adjusted Retirement Number
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How Rhode Island Compares to Nearby States
| State | Annual Cost | Retirement Number | Tax Grade | HC Rank |
|---|---|---|---|---|
| Rhode Island | $64,000 | $1,600,000 | D | #17 |
| New Hampshire | $63,000 | $1,575,000 | A | #3 |
| Vermont | $60,000 | $1,500,000 | D | #5 |
| Maine | $59,000 | $1,475,000 | C | #15 |
How Rhode Island Treats Retirees on Taxes and Healthcare
Rhode Island carries a D retirement tax grade from Plootus Research — one of the less tax-friendly states for retirees, largely driven by its income tax rate.
State Income Tax
Rhode Island's state income tax tops out at 5.99% max. Check current brackets and any retirement-income deductions before you file.
Social Security Tax
Rhode Island is flagged for caution on Social Security and other retirement-income taxation — confirm current rules with a tax professional before relying on this state for planning.
Rhode Island ranks #17 nationally for healthcare quality — solidly mid-pack, worth researching specific providers in your target city.
Frequently Asked Questions: Retiring in Rhode Island
Rhode Island earns a D retirement tax grade and ranks #17 of 50 for healthcare quality. Average annual retirement spending runs about $64,000, requiring roughly $1,600,000 in savings under the standard 4% withdrawal rule. Whether it's a good fit depends on your priorities — Rhode Island's state income tax is 5.99% max, and it warrants caution on Social Security/retirement-income taxation.
Rhode Island is flagged for caution on Social Security and other retirement-income taxation — confirm current rules with a tax professional before relying on this state for planning. Check current thresholds directly with the state, since exemptions often apply below certain income levels.
Using the standard 4% rule, retiring in Rhode Island on its average annual cost of $64,000 requires approximately $1,600,000 in savings. That figure excludes Social Security, which most retirees layer on top to reduce the amount they need from their own portfolio.
At a 3.5% safe withdrawal rate — the more conservative rate recommended for early retirees facing a 40–50+ year horizon — Rhode Island's FIRE number is approximately $1.83M, based on its $64,000/year average cost. Early retirees should also budget separately for healthcare before Medicare eligibility at 65.
Sources
- Bureau of Labor Statistics, Consumer Expenditure Survey 2024 (65+ age group)
- Missouri Economic Research and Information Center (MERIC), Cost of Living Index Q3 2025
- Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS) May 2024
- Kiplinger, Retirement Taxes 2026; WalletHub Best States to Retire 2026
- Plootus Research 2026 (tax grades, healthcare rank, FIRE ratings)
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