5 Worst States to Retire On Social Security

4. Maryland

Insider Monkey Rank: 7.9

Cost of Living Index: 114.8

Health Index: 101.4

Tax Friendliness: Moderately Tax Friendly

Retirees on a fixed income will have trouble retiring in Maryland as its cost of living is 14.8% higher than the national average. Some types of retirement income, including social security and 401(k) distributions, are exempt from taxation. Other types, such as income from an IRA, are fully taxed. Public pension income is partially taxed, and private pension income is fully taxed. Maryland also happens to be the only state with both an estate and an inheritance tax.