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Wednesday, December 5, 2018

Worst State Tax Rates for Retirees?


There is an analysis out today on GoBankingRates.com that evaluates the tax rates of all 50 states, showing best and worst for retirees.


What it shows:

Nebraska, worst, worst, last place, of the 50 states followed far too closely by Kansas at 47th place and Missouri, next, at 46. Neighboring Iowa at 38. Arkansas, too, in the bottom, worse half, at 32. Oklahoma, 29.

Way to go, Midwestern states.

You don’t have mountains, you don’t have an ocean and you also don’t have good tax policies for retirees.

Besides less traffic and hopefully cleaner skies, what do you have?

Note to retirees: Check out the states that have both no income tax and no tax on Social Security.

In the #1 best spot on the list for most friendly to retirees?

Alaska.

Check out that map.

Slide 52 of 52: Retirees need to consider the impact taxes will have on their income. But that’s not the only thing they should think about when deciding where to retire. There are several factors to consider when looking for a place to retire — including the cost of living and access to healthcare. A state that isn’t the most tax-friendly might actually be a good fit for your retirement needs. Click through to learn about the best and worst things to do when looking for a place to retire. More on Retirement Planning  50 Cheapest Places to Retire Survey Finds 42% of Americans Will Retire Broke — Here’s Why Best Cities for Retirement in These Income Tax-Free States Watch: Will Your Kids’ Cap and Gown Kill Your Retirement Plans?  We make money easy. Get weekly email updates, including expert advice to help you Live Richer™.  Methodology: GOBankingRates examined four tax rates: 1) average state and local sales tax, sourced from the Tax Foundation; 2) state tax on Social Security benefits, sourced from Kiplinger; 3) effective state property tax, sourced from the National Association of Home Builders; and 4) state income tax rate based on the median income of adults ages 65 to 74, sourced from the Bureau of Labor Statistics. State tax on Social Security benefits was weighted twice as much as other taxes.

Worst tax rates for retirees, right in the center of the nation.

Kudos, Missouri, kudos, Kansas and Nebraska.

Way to chase people away.


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