Utah
One of the few states that still tax social security is Utah. From this point of view, it might not be the ideal place to retire. Pension and various other types of retirement incomes could also be subject to a 4.85% flat income tax levied by the state.
But it’s worth mentioning that seniors could claim a small credit against these taxes. Utah also has a combined state and local sales tax rate above average, at 7.19%. In the meantime, property tax rates are the 8th lowest in the state. The cost of living is only 1.5% above the national average, at 101.5.
Virginia
Virginia isn’t really that unfriendly when it comes to taxes, but combined with the cost of living, retirees could definitely go for better options. For instance, the living costs in the state are 3.1% above the national average.
Sales and property taxes are also very low, and income taxes in Virginia are a bit higher than in other states. More than that, Social Security isn’t really taxed, but other types of retirement incomes are still deductible up to $12,000. In the end, Virginia scores the cost of living of 103.1.
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