Many retirees today live on a fixed income. Those who do not are still likely to live on a limited amount of retirement savings. One of the best things that you can do as a retiree is to settle down at a home base. Before you set down your golden year roots, be sure your state is retirement friendly. As a retiree here are the least tax friendly states that you will want to avoid.
New York City
The tax rate for the state of New York averages to just over 12% in taxes. If you live in New York City, you will also pay city income tax. Therefore, you will owe federal, state, and city income taxes, which is a big chunk of your income. If you own a home in New York that is worth six figures, expect a hefty property tax bill each year.
Rhode Island does not tax social security income for seniors with an $80,000 individual or $100,000 for married couples. All other forms of retirement income, including pensions are taxed by the state. Property tax bills in Rhode Island are among the highest in the United States.
The state of Vermont is one of the worst states for retirees. All retirement income is subject to taxation, including much of Social Security income. Income deductions are limited to around $15,750 for a single person and $31,500 for a couple. Restaurants and prepared foods in the state have a heavy tax rate of 9% decreasing your quality of life if you enjoy dining out.
Image credit: Alain Ferraro