
#4 New Jersey
The state income tax ranges from 1.4% to 10.75%. The 1.4% applies to taxable income up to a maximum of $20,000, and the 10.75% applies to taxable income above $1 million.
The Garden State maintained its position among the least tax-friendly states for seniors and other groups. Nevertheless, New Jersey has taken steps to lessen the burden of income tax on retirees, offering substantial deductions for income in retirement and a full exclusion for benefits from Social Security.
However, it is insufficient to compensate for New Jersey’s crippling property taxes, which are the highest in the nation, with residents paying a median of $2,471 in taxation per $100,000 of estimated home value. People in their retirement tend to leave the state in search of locations with lower taxes because of this.