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

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1. Hawaii

Cost of Living: 179

The worst state to retire in for taxes and cost of living is Hawaii. With a cost of living that is 79% above the national average, the state is one of the most expensive ones that retirees can choose for themselves. The highest income tax bracket in the state is 11%. Retirement savings accounts and private pensions are fully taxed. However, social security benefits, private pensions, military and government pensions, and Tier 1 railroad retirement benefits are tax exempt. The average combined sales tax rate is 4.44%, and groceries are taxed at the full rate. The average effective property tax rate is 0.29%, one of the lowest in the US.

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