Top 7 US States Less Favorable for Retirees Due to High Taxes
This article highlights seven US states known for their high tax rates, making them less ideal for retirees. It discusses income, sales, and property taxes, helping retirees make informed decisions about where to settle down. High taxation can significantly impact savings and daily expenses, so avoiding these states can benefit retirees seeking financial stability in their retirement years.
Retirees often face financial challenges due to high state taxes. When choosing a retirement location, it's essential to consider states with low or no taxes on Social Security, as well as favorable income, sales, and property tax rates. Excessive taxes can strain your finances, making daily expenses harder to manage. To avoid surprises, here are seven states known for their less retiree-friendly tax policies. Retirees should be cautious when considering these locations for their golden years.
Connecticut: Tax rates include an income tax of 3% to 6.99%, a sales tax of 6.35%, and property taxes averaging 1.97%. Recent tax law changes now also tax salaries minimally, alongside dividends and other income sources.
Minnesota: With income taxes ranging from 5.35% to 9.85%, sales taxes between 6.87% and 8.37%, and property taxes at 1.18%, Minnesota ranks among the higher-tax states. The state primarily generates revenue through income taxes.
Vermont: Income taxes in Vermont span from 3.35% to 8.95%, with sales taxes averaging 6-7%, and property taxes around 1.78%. The state also imposes excise taxes on products like cigarettes and gasoline, contributing to the higher tax burden.
Kansas: Tax rates in Kansas include income levels from 2.9% to 5.2%, sales taxes up to 11.5%, and property taxes at 1.4%. Recent reductions in income taxes may reverse, and high sales taxes remain a concern.
New York: Income taxes range from 4% to 8.88%, with sales taxes between 7% and 8.87%, and property taxes averaging 1.65%. While income taxes are high, some residents pay less depending on income brackets. However, sales taxes can significantly impact expenses.
Rhode Island: Tax brackets from 3.75% to 5.99% apply, with a uniform 7% sales tax, and property taxes at about 1.65%. A progressive tax system ensures higher earners pay more.
Missouri: Income taxes range from 1.5% to 6%, sales taxes from 4.72% to 11.36%, and property taxes are approximately 1%. The state also levies local taxes, adding to the overall tax load.
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