New Jersey
Another not-so-friendly state for retirement is New Jersey. The state marks a high cost of living 14% above the national average. On the bright side, Social Security incomes aren’t taxed, and state income taxes for retirement incomes are low, too.
The low tax is applicable for pensions below $75,000 for single filers and $100,000 for joint filers. But the deal breaker is the property tax rate, especially since it is one of the highest in America.
Vermont
In Vermont, your retirement income would be taxed. It’s worth mentioning that the rates might vary anywhere between 3.35% and 8.75%. Joint filers have a federal adjusted gross income of $65,000 or less, and other taxpayers with an AGI of $50,000 or less are fully exempt from taxation of Social Security benefits.
Here, the median property tax rate is 5th highest in the state, and the cost of living is 14.9% higher than the national average, reaching 114.9.
Speaking of relocating, when you decide on the next state, you’ll probably have to move out a couple of stuff, right? Well, get yourself some boxes now to make sure you have everything you need for the big day!
If you’re interested in reading similar information on retirement and relocating, here’s what we recommend reading: When Are The Best Days For Biggest Grocery Store Discounts This Year?
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