This article highlights seven US states with high tax burdens on retirees, including Connecticut, Minnesota, Vermont, Kansas, New York, Rhode Island, and Missouri. It details each state's percentage rates on income, sales, and property taxes, emphasizing the importance of tax considerations when choosing a retirement location. Staying informed about tax policies helps retirees plan better and avoid exceeding their budgets, ensuring a more comfortable retirement experience.

Seven US States with the Highest Tax Burdens for Retirees

When choosing a state for retirement, understanding the tax landscape is crucial. Some states levy heavy taxes on social security, income, sales, and property, which can diminish retirement savings. To maintain financial peace of mind, retirees should be aware of these seven states known for their burdensome tax policies. Higher tax rates in these locations can strain budgets, so selecting a state with friendlier tax conditions is vital for a relaxed retirement lifestyle.

Connecticut: Income taxes from 3% to 6.99%; sales tax 6.35%; property tax at 1.97%. Recent reforms mean employment income is taxed at minimal rates based on income levels.

Minnesota: Income taxes between 5.35% and 9.85%; sales taxes from 6.87% to 8.37%; property taxes at 1.18%, known for significant tax burdens on income and consumption.

Vermont: Income taxes up to 8.95%; sales taxes around 6-7%; property taxes at 1.78%. Additional excise taxes on various goods increase overall tax expenses.

Kansas: Income taxes from 2.9% to 5.2%; sales taxes between 6.50% and 11.50%; property taxes at 1.40%. Recent tax policy changes may raise income tax rates further.

New York: Income taxes from 4% to 8.88%; sales taxes up to 8.87%; property taxes at 1.65%. The combined high taxes make it costly for retirees to reside here.

Rhode Island: Income taxes from 3.75% to 5.99%; sales tax at 7%; property taxes at 1.65%. The tiered tax system favors lower-income residents but can be expensive for higher earners.

Missouri: Income taxes between 1.5% and 6%; sales taxes from 4.72% to 11.36%; property taxes at 1%. Local taxes can add to the overall cost of living.

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Note: Our articles are intended as informational resources based on comprehensive research. They do not constitute definitive financial advice. The site is not responsible for any data errors or overlooked opportunities that could benefit your financial planning.