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The States With the Highest Taxes for Retirees

The States With the Highest Taxes for Retirees
From TIME - April 6, 2017

Retirees have many good reasons to change where they live: climate, health care facilities, hobbies, crime rate, proximity to family. Cost of living is another big considerationand on that front, state and local taxes may be a big component. [Bankrate.com recently offered up its overall ranking of the best and worst states for retirees.]

States have very different tax structures. If you move for lifestyle reasonssay, to Californiayou might be rudely surprised by the states average effective tax rate of more than 13%. You can get similar weather, if not views, in Nevada or Florida, where the comparable state tax rate is less than 8%.

These are averages, reported in J.P. Morgan Asset Managements annual retirement guide. The figures include income, sales, and property tax for a hypothetical retired couple. Your own rate will depend on many factors, including your sources of retirement income and the specific region in which you settle.

Different states treat income from Social Security, assets, earnings and pensions differently. For example, 13 states including Colorado, Connecticut, and New Mexico tax Social Security benefits, according to the J.P. Morgan report. Five states, including Oregon, Alaska, and New Hampshire, have no sales tax. Nevada, South Dakota, and Wyoming, among others, have no income tax.

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