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

4. California

Cost of Living: 134.5

While social security benefits aren’t taxed in California, it is still one of the worst states a retiree can move to in terms of taxes and cost of living. Living expenses in the state are 34.5% above the national average, and the state also boasts some of the highest sales taxes in the United States. The average combined sales tax rate, according to Tax Foundation, is 8.82%. Pensions and income from retirement accounts are fully taxed at one of the highest state income tax rates.