The 10 Most Unwelcoming States for Retirees

Somestates are stingy with retirement tax breaks. Here are the top ten least tax-friendly states and the taxes they imposeupon retirees:

1. Rhode Island: 3.75% to 5.99% incometax, 7% sales tax, estate tax
2. Vermont: 3.55% to 8.95% incometax, 6% sales tax, estate tax
3. Connecticut: 3% to 6.7% incometax, 6.35% sales tax, estate tax
4. Minnesota: 5.35% to 9.85% incometax, 6.88% sales tax, estate tax
5. Montana: 1% to 6.9% income tax,no sales tax
6. Oregon: 5% to 9.9% income tax,no sales tax, estate tax
7. Nebraska: 2.5% to 6.8% incometax, 5.5% sales tax, inheritance tax
8. California: 1% to 13.3% incometax, 7.5% sales tax
9. New Jersey: 1.4% to 8.97% incometax, 7% sales tax, estate and inheritance tax
10. New York: 4% to 8.82% incometax, 4% sales tax, estate tax

RhodeIsland, Vermont, Connecticut, Minnesota, Montana, and Nebraska all tax SocialSecurity income as well.

See Sandra Block, 10 Least Tax-Friendly States for Retirees,Kiplinger, August 2013.