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5 Least Tax Friendly States to Retire

Avoid these potential retirement places if taxes are a main concern

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#1 Least Tax Friendly State to Retire: Rhode Island

A variety of factors makes Rhode Island not the best place to be for retirees. As Kiplinger notes, the state is “among the minority of states that tax a portion of Social Security benefits …to the same extent as they are by the federal government—up to 85%. The state also taxes virtually all other sources of retirement income, including pension income.”

Some good news: Rhode Island reduced the top income tax rate from 9.9% to 5.99%, with the three middle tax rates now at 4.75%. Now more bad news: Estates worth more than $910,725 are hit with the estate tax, and like other non-tax friendly states, the highest rate can reach 16%.

Check out the full list of least tax friendly states from Kiplinger here.

Article printed from InvestorPlace Media,

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