9 US States You Do Not Want To Retire In Due To Taxes, Living Expenses
You may have read some articles on best places to retire in America, but do you know the worst states for retirees in the US? Click through to find out about the 9 states you should avoid if you want to make the best of your retirement money.
#1 New York
Cons: highest cost of living; highest state and local income taxes in the US; property taxes ranked fourth; expensive health care and housing; heavy traffic; cold and snowy winter;
Pros: a relatively safe place; three of the top 10 hospitals in the country for geriatrics
#2 Washington, D.C.
Cons: cost of living ranked second in the US; the second-highest median home value of $424,400; high-income tax at 8.9%; high sales tax at 5.75%; estate tax at over 16% for estates valued at $1 million and above; violent crimes are 3.5 times the national rate; higher property crime rate than average.
Pros: the nation's seat of power
#3 New Jersey
Cons: the average rent is $1,527 per month (67% higher than the national average); the median home value is double the national average; the real estate tax is sky-high; healthcare costs 8% higher than average; some retirement income tax can reach a whopping 8.97%; thunderstorm; blizzards
Pros: a relatively safe place
#4 North Carolina
Cons: above average cost of living; 17.5% of North Carolina live below the poverty line; average income is $64,490 (14% less than the national average); income of older residents is 18.3% below average; a flat income tax of 5.75%;
Pros: mild winters; Silicon Valley
Cons: least tax-friendly for retirees; taxable retirement income(social security benefits, private pensions, etc); the average income for individuals 65 and older is 13.7% below the U.S. average; high cost of living; above-average median home value and health care cost; cold winters and hot summers(blizzards, hail, tornadoes)
Pros: a land of 10,000 lakes; 72 state parks and recreation areas
Cons: high state and local taxes(above a combined 10% in some areas ); high cost of health care(a healthy couple will need $416,500 throughout retirement, $21,500 more than the national average)
Pros: retirement income sources are exempt from taxes(401K plan and individual retirement accounts included)
Cons: extremely high cost of living; median home rent at $2,975 a month (three times more expensive than the national average); second highest income tax at 11%.
Pros: ocean and beach; warm tropical climate
Cons: high cost of living and high tax rate; rental fee at $2,196 per month (more than double of the national average); gasoline costs 11.7% more than the national average; consultation fee for doctors is 27.7% higher than average; income tax at 9.9% for those who earn more than $125,000 annually (retirement income included); active volcanoes
Pros: beach, places to hike, delicious craft beer
#9 South California
Cons: cost of living ranked third in the US; highest state income tax; sales tax at 7.5%; high median home value of $368,600(more than double the national median); steep rental fees;
Pros: beautiful sunshine and beach
Cons: the fourth-highest property taxes in the US; taxable retirement income; a relatively high marginal income tax rate of 7.75% in the highest bracket (over $225,000).
Pros: no tax on Social Security benefits; no estate state tax.
Cons: the sixth-highest property taxes; taxable Social Security and pension income; high marginal tax rate of 6.84%, which starts at a very low $29,000; an inheritance tax.
Pros: the second-lowest cost of living in the US.
Cons: the seventh-highest property taxes; taxable pension and retirement income.
Pros: no estate or inheritance tax; a below-average cost of living (NO.14).
Cons: high property taxes; taxable Social Security and pension income; high marginal tax rate of 8.95% (on incomes over $405,100); high cost of living (NO. 41).
Pros: a beautiful state with nice people; outstanding recreation with mountains and forests.
Cons: some pension and retirement income is taxed; high marginal tax rate of 5.95%.
Pros: no estate state tax; no tax on Social Security benefits; a below-average cost of living (NO.15).
Cons: the tenth-highest property taxes (houses are expensive here which means people pay a lot of tax); the fourth-highest gas tax; the fourth-highest estate taxes (16% on anything over a $2 million estate); top marginal tax rate of 6.7%; taxable Social Security and retirement income; high cost of living (48th of 51).
Pros: the highest personal exemptions in the US ($24,000 for a couple); some Social Security benefit exemptions.