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

2. District of Columbia

Cost of Living: 148.7

Even though District of Columbia isn’t a state, it is included in our list as it is one of the worst places one can retire in for taxes and cost of living. Except for social security, most other income from retirement accounts are taxed. The sales tax rate is around 6%, same as the surrounding states of Virginia and Maryland. Cost of living is 48.7% above the national average.