#4 Least Tax Friendly State to Retire: Minnesota
With a state sales tax of nearly 7% and state income tax of up to 9.8%, you’d think the hard cold winters of Minnesota would cause government officials to lighten the load on seniors. Not so. The state taxes Social Security income as much (or more) as the federal government does — up to 85%.
More bad news for retirees in the North Star State? Pensions are taxable, be it military, government or private.