- Posted by Amy Spagnola
- On March 13, 2017
- 0 Comments
If you’re preparing to retire and considering state shopping for the next best place to live–it might be prudent to investigate the local taxes. State tax laws can vary widely and for those on a fixed financial budget in their senior years–this can make a big impact. Keeping taxes low can dramatically reduce overall expenses and lead to a brighter and better financial future in the golden years.
So, what are the states to avoid when you’re ready to enjoy the fruits of many years of long labor?
10. Utah-Offering few tax breaks for retirees, the Beehive state has a 5% state income flat tax and local sales tax averaging 6.9%.
9. New York-With some of the highest property and sales tax rates in the U.S., the Empire state is not the best place to envision BBQs with the grandkids
8. New Jersey-With a claim to fame of having the highest property taxes in the U.S., the Garden State is not the ideal spot to learn fly fishing or bridge in those twilight years
7. Nebraska-Taxing retirement income, including withdrawals and public and private pensions, the Cornhusker state is not the friendliest spot to take up quilting or golf
6. California-With residents paying the third highest effective income tax rate in the U.S. and having the highest state sales tax in the country–even the sunny skies of the Golden State don’t make up for the tax burdens
5. Montana-In Big Sky Country, most forms of retirement income are taxed including social security benefits
4. Oregon-While the Beaver State can claim no sales tax, other retirement income is taxed at the top income tax rate
3. Minnesota-A land of many lakes means being watered down in taxes–income tax rates and sales tax rates are high in this midwestern state
2. Connecticut-Most retirement income is taxed along with Social Security benefits for certain taxpayers at different income levels inThe Constitution State. Plus, real estate taxes are the fourth highest in the nation
1. Vermont-The Green Mountain State taxes most retirement income as well as limiting deductions and having high property tax rates