7. Connecticut
The biggest disappointment for the retirees who wanted to move here… why? Because taxes in this state are exorbitant, but they are on the rise. Beginning in 2022, the income from a pension is exempt for joint filers with less than $100,000 or federal adjusted gross income.
Other taxpayers with federal AGI of less than $75,000 are also affected. Did you know that Connecticut has the third-highest median property tax rate in the United States?
The only good news is that the state offers property tax credits to homeowners who are 65 years old.
In case you didn’t know, Connecticut is the only state with a gift tax.
8. Michigan
When it comes to “The Great Lakes State,” Michigan is actually collecting more state and local taxes from retirees than many other states in America. And that’s disappointing. The state’s median property tax rate is the 14th highest in the nation despite the fact that they give some property tax breaks for retirees with lower incomes.
The situation with taxes is weird in Michigan because if, for example, you were born in 1946, the tax breaks for you might be pretty good. In case you were born later, the state won’t be that indulgent with you.
Are you planning on relocating right after retiring? We hope we’ve covered at least some of the states you’re thinking about!
If you are interested in taxes, then we have more like this. Don’t forget to check out 7 Amazing Places You Should Travel to When You Retire.
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.