Average Property Tax in Rhode Island

In 2016, Rhode Island has the ninth highest effective property tax rate in the country with an average assessment of 1.61%. Rhode Island finds itself with one of the highest property tax rates in the northeast region of the United States, and it has consistently levied high property tax rates. One reason for this is Rhode Island's heavy investment in public education. Although Rhode Island has other tax revenue streams, it finds itself as one of the highest spenders on public education in the U.S.

Property Tax by County in Rhode Island

Rhode Island has five counties. Newport County the lowest average effective property tax rate at 1.18%. The median property tax assessment in Newport County is $4,198. The county with the highest rate is Kent County. Although its average property tax rate is 1.69%, Kent County has the lowest median assessed property value, which leads to a median property tax assessment of only $3,714.

In 2016, Bristol County has an average effective property tax rate of 1.42%. Because the median property tax assessment in Bristol County is among the highest in the state, it assesses the highest median property taxes at $4,839. Although Providence County has the second-highest rate in the state at 1.65%, it has the lowest median collection in the state at $3,688. The fifth county, Washington County, has an average effective property rate of 1.30% and a median property tax assessment of $4,182.

How Rhode Island Property Taxes Compare to Neighboring States

Although Rhode Island assesses a high property tax, it is in good company with the rest of its neighbors. Of its neighbors, Massachusetts has the lowest property tax assessment with an average rate of 1.18%. Still, this is the 31st-highest rate in the nation. New York’s average property tax rate is also lower than Rhode Island’s, as the Big Apple has the 10th-highest property tax rate at 1.58%. Two of Rhode Island’s neighbors, however, have higher rates. Connecticut has an average effective property tax rate of 1.91%, which is the fifth-highest rate in the U.S. Finally, New Hampshire also has Rhode Island beat with an effective property tax rate of 2.1%, trailing Hawaii for highest property tax rate in the country.

How Rhode Island Property Taxes Compare to the National Average

Rhode Island assesses a median property tax of $3,618. This is the fifth-highest median property tax in the U.S. On average, 4.92% of the average income of a resident of Rhode Island is paid in property taxes, which is the seventh-highest ratio in the country. Finally, Rhode Island has the 12th-highest proportion of property taxes assessed to the property’s value as each $1 of assessed property value results in an average of $0.0135 of property taxes.

Property Tax Spending in Rhode Island

Rhode Island assesses a personal income tax up to 5.99%. However, this rate was reduced in 2011, as the highest marginal tax bracket was 9.9%. Rhode Island also assesses a sales tax of 7%. Because of these two additional taxes, Rhode Island has sufficient revenue to spend on public services. One example of this is the money spend on public education. Each year, Rhode Island spends the fifth-highest amount of money on public schools. However, the results are not conducive to the investment being made in education. Wallethub has Rhode Island’s school system ranked as the 35th best in the country. Although it is a top five spender, Rhode Island failed to achieve top-five test scores for math, reading or SAT. Therefore, Rhode Island must continue to assess high property taxes as even more funding is required to benefit the education system.

New Jersey Property Tax Guide

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