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%.
1 thought on “Curious About Big Taxes? Here’s How 8 States Tax Retirees”
You need to swap out Alabama for Virginia. Virginia taxes literally everything ata a high rate. I pay almost much personal property tax for my 4 year old truck as I do for my house.