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Curious About Big Taxes? Here’s How 8 States Tax Retirees

June 20, 2022 · Retirement Life
taxes
Photo by eskystudio From Shutterstock

6. Massachusetts

If your initial plan was to move to Massachusetts, then we have bad news: this state is not very tax-friendly for retirees. Because when it comes to taxes, Massachusetts doesn’t tax Social Security benefits and most of the government pension income. But then again, you should know that all other retirement income is taxed at a flat rate of 5%.

The good news is that the state of Massachusetts will decide in November whether to impose an additional 4% tax on taxable income over $1 million beginning next year.

When it comes to property taxes, they are pretty high. But there is a refundable tax credit available for the owner who is already 65 years old or even older. Massachusetts is an exception to other states because it has its own estate tax. The average combined state and local sales tax rate is no more than 6%, and the state income tax range is flat at 5%.

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59 comments on “Curious About Big Taxes? Here’s How 8 States Tax Retirees”

  1. Ukkundo'Oohwaka NLN says:
    April 5, 2025 at 11:29 am

    Any American drawing Social Security, Military Retirement, Post Office Retirement, etc… have lived in this country and turns (80) eighty should not pay no sales, property, state, city, gasoline, or any other taxes. NO TAXES AFTER (80) EIGHTY.

    Reply
  2. Char says:
    March 24, 2025 at 5:30 pm

    Hmmmm, all blue states….

    Reply
  3. R M says:
    February 11, 2025 at 12:06 am

    Posts seem to disappear on here. Not worth writing them if they disappear.

    Reply
  4. R M says:
    February 10, 2025 at 9:09 pm

    This site is a waste of time. The censors cut out perfectly legitimate comments!

    Reply
  5. Maggie says:
    January 26, 2025 at 5:36 pm

    NEW HAMPSHIRE! No sales tax so the property owners support the state. Stay away!

    Reply
  6. Frederick Jr. says:
    December 28, 2024 at 6:29 pm

    I am an old guy and a bit grumpy. Before I grew a brain, I lived in and loved California. I “happily” paid all my taxes and thought how smart the legislatures were who were managing the state and our money. Reluctantly, I moved to Oregon and then to Washington State. That is when I started to grow a brain. I looked around at the infrastructure in Oregon and the wonderful equipment they had to maintain the roads and building during the summer and winters. Lots of snow in the winter and flooding every simmer. Things started to change when the Democratic administration voted to sell the equipment and the soft on criminal voters started singing kumbaya. This transition from legislatures who care about the middle class to their worship of the almighty dollar and the Hollywood braindead actors started about the same time. I requested a transfer and relocated to Washington State about the same time our current Governor was elected. It was not long before he was in bed with the elite crowd in Oregon and Washington State started to look a lot like California. I still live in Washington State and my prayers are directed towards a Republican President fulfilling his promises to restore sanity to our Federal and local governments. I, like millions of other Americans, can deal with the rain, snow and high taxes but, we need a break from all the crime, both in our local governments and our Federal government. As an American citizen who is a 100% disabled combat veteran, I want to be proud of my President. I want to hold my head up high and wave the stars and strips as he passes by. I long to shout, “that’s what I fought for, it was worth it”. I have not felt that pride for too many years, certainly not during the last four.

    Reply
  7. James David Prater says:
    December 28, 2024 at 3:08 pm

    You really missed out when you did not talk about Mississippi. No state income tax on any retirement income including Social Security and 401 K and regular IRA distributions. Exemptions on property taxes if totally disabled. Property taxes on vehicle depend on its value, I own 4 vehicles and pay a total of around $325 for license plates for them all and it goes down each year for tax and license combined. Trailers are even cheaper to Keep plates on a camper, utility trailer and 2 boat trailers cost me about $150 dollars registration per year total. Gas is very close to being the least expensive in the nation. Property in inexpensive, and cost of food is lower than most states.

    Reply
  8. joseph nekerbaum says:
    December 6, 2024 at 6:00 am

    I am drawing 3 disability checks, one military, one social security and one civil servant. I live in a 3-bedroom mobile home I bought last year. I buy a new mobile home every 4 years and sell my old one. I live 35 miles from a major city that has a military base. I shop on base for my food, beer, wine and liquor. I have access to many younger ladies that have husbands serving overseas so I am quite satisfied with my situation.

    Reply
  9. Gary says:
    December 5, 2024 at 9:13 pm

    Is there any tax breaks for me with a more of a disease on total disability. The disease is stiff person syndrome, which is the same thing. Céline Dion has his pain 24 seven.

    Reply
  10. Gene says:
    December 4, 2024 at 9:16 pm

    I live in NC and we are required to pay personal property taxes on our vehicles before we can renew the license plate. We pay taxes at the DMV. If we are 1 day late renewing the license plate we get charged a late penalty of $15 .

    Reply
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