5 Worst States to Retire in for Taxes and Cost of Living

In this article, we will take a look at the 5 worst states to retire in for taxes and cost of living. If you want to check out our detailed analysis on the worst states for retirement and saving for your golden years, you may go to the 20 Worst States to Retire in For Taxes and Cost of Living.

5. New York

Cost of Living: 125.1

One of the worst states to retire in for taxes and cost of living is New York. Living expenses are 25% above the national average, and New Yorkers have a significant tax burden as well. The income tax rate is very high, and New York City’s is an additional 3.078% to 3.876% higher. Social security benefits, military retirement plans, and retirement income from New York state and local government as well as federal government is tax-exempt. Private pensions and income from retirement accounts, on the other hand, are deductible up to $20,000. The state has an average state and local sales tax rate at 8.52%. Property tax rates are steep as well with reductions for qualifying seniors.