Sunday, October 27, 2013
Some states are stingy with retirement tax breaks. Here are the top ten least tax-friendly states and the taxes they impose upon retirees:
- Rhode Island: 3.75% to 5.99% income tax, 7% sales tax, estate tax
- Vermont: 3.55% to 8.95% income tax, 6% sales tax, estate tax
- Connecticut: 3% to 6.7% income tax, 6.35% sales tax, estate tax
- Minnesota: 5.35% to 9.85% income tax, 6.88% sales tax, estate tax
- Montana: 1% to 6.9% income tax, no sales tax
- Oregon: 5% to 9.9% income tax, no sales tax, estate tax
- Nebraska: 2.5% to 6.8% income tax, 5.5% sales tax, inheritance tax
- California: 1% to 13.3% income tax, 7.5% sales tax
- New Jersey: 1.4% to 8.97% income tax, 7% sales tax, estate and inheritance tax
- 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.