10 Worst States For Retirees
According to Kiplinger magazine, the 10 worst state for retirees from a tax standpoint are these:
- New Jersey
- New York
A state makes the list because it has a combination of some of these items: high income tax (including taxing Social Security income!), high average sales tax, and a separate inheritance tax. Some states also have a high property tax, for example, Connecticut has the 4th highest property taxes in the nation. Not all States have all these taxes, but the “winner” is Vermont that manages to have a state income tax rate of at least 3.5%, an average sales tax of 6.17%, and a separate estate tax. Oh, and it taxes Social Security income the same way the Federal government taxes it.
Bottom line: If you’re thinking about retiring in one of these states, plan for a high overall tax rate, which means less income for fun things.