Surprise: If you were to assume that the worst tax states for retirement were primarily in the Northeast, you would be wrong. all but 3 of the states on this new list are west of the Mississippi.
Online PR News – 14-September-2011 – – When it comes to being tax-friendly, some states definitely treat retirees worse than others. To help retirees find the best places to retire from a tax standpoint, the editors at Topretirements.com have developed a new list of the worst 10 states for taxes. A key factor in this list was how various states treat different kinds of income, particularly social security and pension income. Many states exempt these typical retirement income sources from taxation, while the ones on this list treat tend to treat it as ordinary income. Retirees who are concerned about taxes would be well-advised to steer clear of these high-tax states.
The 2011 List – Worst Tax States for Retirement
The following is our list of the worst states for retirement taxes, with the priority on income taxes. The states on this list are here primarily because they do not have meaningful exemptions for social security and/or pension income.
6. West Virginia
7. Rhode Island
For details on why each state made the list and how they would tax a hypothetical retired couple's income of $60,000 or $100,000, see the full article on worst places to retire.
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