Rhode Island
Probably one of the worst states to retire in this day and age is Rhode Island, and the main reasons for that are the taxes and high cost of living. Rhode Island has a very high overall tax burden.
The median property tax rate in the state is the 15th highest everywhere in the United States. Seniors could also have to pay tax on their social security benefits, provided that their federal adjusted gross income is way above $119,750.
The sales tax bite isn’t that bad, though, as Rhode Island is probably one of the few states that collect their own estate tax. Excluding IRAs, seniors who reached their full retirement age could exclude up to $15,000 of their income from their military, government, and private retirement plans. The cost of living here is 0.5% above the national average in Rhode Island.
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!
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