Top 7 US States Least Favorable for Retirees Tax-Wise

Choosing the ideal state for retirement involves considering tax implications that can affect your finances. Some states impose high taxes on social security, income, sales, and property, making retirement less affordable. To ensure financial stability, retirees should avoid these seven states known for their unfriendly tax policies. These states tend to have higher rates that can strain retirees’ budgets, so careful selection of your residence is essential for a comfortable retirement.

• Connecticut: Income taxes range from 3% to 6.99%, with an average sales tax of 6.35% and property taxes at 1.97%. Recent tax reforms mean even salaries are taxed at minimal rates depending on income brackets.
• Minnesota: Income tax spans 5.35% to 9.85%, with sales tax rates between 6.87% and 8.37%, and property taxes at 1.18%. The state is known for its relatively high taxation on income and sales.

• Vermont: Tax rates on income reach up to 8.95%, with sales taxes around 6-7% and property taxes at 1.78%. The state also applies excise taxes on various products, increasing overall tax burdens.
• Kansas: Income taxes range from 2.9% to 5.2%, with sales taxes from 6.50% to 11.50%. Property taxes average 1.40%. Recent tax policy changes could elevate income tax rates further.

• New York: Income tax varies from 4% to 8.88%, with sales taxes up to 8.87%, and property taxes at 1.65%. The high income tax burden and steep sales taxes make it costly for retirees.
• Rhode Island: Income taxes range between 3.75% and 5.99%, with steady sales tax at 7% and property taxes at 1.65%. The state’s tiered tax system benefits low earners but can be expensive for high-income retirees.

• Missouri: Income taxes lie between 1.5% and 6%, with sales taxes spanning 4.72% to 11.36%, and property taxes at 1%. Additional local taxes further increase costs.