Maine
Probably one of the worst states to retire to is Maine. This state scored no less than 111.5 on the cost of living, which is 11.5% higher than the national average.
As Social Security income isn’t taxed in this state, there are other forms of retirement income that are taxed, sometimes as high as 7.15%. The property tax rate is above average at 1.09%. They decided to levy an estate tax, too. As for the sales tax rate, you should expect 5.5%, including groceries, without staples.
Connecticut
If you’re dreaming of moving to Connecticut, you’ve got something going for you. In Connecticut, all types of retirement incomes are taxed under its income tax system.
Even if some Social Security benefits are still tax-exempt like joint and head of household filers registering an Adjusted Gross Income smaller than $100,000, the cost of living here is still quite high: 113.1.
Also, the statewide sales tax rate is no less than 6.5%, excluding groceries, prescription drugs, diapers, some feminine products, but also clothing under $50.
2 Responses
Military retirement is not taxed in CT. Future tax pans are expected to reduce tax on other retirement income and social security is taxed on a sliding scale. CT is a very good state for retirees
Why wasn’t Hawaii included? It’s more expensive to survive there than in San Francisco! After the wildfire on 8-8-23 wiped out Lahaina on Maui, one family faced having to pay $9K a month to rent a 4-BR house!