The Green Mountain State's tax bite will leave many retirees seeing red. By David Muhlbaum, Senior Online Editor Originally published February 5, 2016 High taxes can be a killer for people living on fixed incomes. That’s why retirees should carefully weigh a state’s tax picture before committing to live there.See Also: Cheapest Places Where You Will Want to Retire We analyzed the tax policies of all 50 states and the District of Columbia to identify the worst states for retirement when it comes to taxes. We looked at state sales taxes and income taxes, including taxes on Social Security, as well as property taxes, estate taxes and inheritance taxes. Our conclusion: The Green Mountain State will leave many retirees seeing red. Sure, it’s pretty, but Vermont levies a 6% sales tax, property taxes skew high, and most forms of retirement income are taxed. The top income tax rate is a steep 8.95%. Vermont even started taxing soft drinks in 2015. And when you die, your estate can face a tax bite of as much as 16%. Consider yourself warned. See 14 more of the worst states for taxes on retirees.