Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Sunday, October 27, 2013

The 10 Most Unwelcoming States for Retirees


Some states are stingy with retirement tax breaks.  Here are the top ten least tax-friendly states and the taxes they impose upon retirees:

  1. Rhode Island: 3.75% to 5.99% income tax, 7% sales tax, estate tax
  2. Vermont: 3.55% to 8.95% income tax, 6% sales tax, estate tax
  3. Connecticut: 3% to 6.7% income tax, 6.35% sales tax, estate tax
  4. Minnesota: 5.35% to 9.85% income tax, 6.88% sales tax, estate tax
  5. Montana: 1% to 6.9% income tax, no sales tax
  6. Oregon: 5% to 9.9% income tax, no sales tax, estate tax
  7. Nebraska: 2.5% to 6.8% income tax, 5.5% sales tax, inheritance tax
  8. California: 1% to 13.3% income tax, 7.5% sales tax
  9. New Jersey: 1.4% to 8.97% income tax, 7% sales tax, estate and inheritance tax
  10. New York: 4% to 8.82% income tax, 4% sales tax, estate tax

Rhode Island, Vermont, Connecticut, Minnesota, Montana, and Nebraska all tax Social Security income as well.

See Sandra Block, 10 Least Tax-Friendly States for Retirees, Kiplinger, August 2013.


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