Having a heavy tax burden can hurt your retirement savings. Different states each have different tax codes and would affect your retirement income differently. New York is an example of a poor state for retirees tax bill (and everyone else’s tax bill as well). Illinois also has an expensive tax code with extremely high property taxes. The worst state in the union for retirees in terms of taxes is Nebraska. This is due to steep income and property tax levels.
Key Takeaways:
- With sky-high property taxes and a hefty sales tax, New York is not a financially friendly state for retirees.
- With very high property tax rates, a state gift tax, and a progressive estate tax, retirees should avoid Connecticut.
- Since Kansas taxes social security benefits and distributions from 401(k)s and IRAs, seniors probably don’t want to retire to this state.
“the Empire State’s heavy tax burden carries over into retirement—especially when it comes to property taxes.”
