State-by-State Guide to Taxes on Retirees

outline of U.S. map made of different denominations of dollar bills

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last updated 8 December 2023

There are several factors to consider when deciding where to relocate once you retire, and state tax on retirees is probably one of them. After all, taxes don’t stop once you leave the workforce, and high-tax states can drain retirement savings faster than states with lower taxes. Additionally, overall tax burdens can vary significantly from one state to another. That’s why Kiplinger created this state-by-state guide to taxes in retirement.

The interactive map below highlights the most and least tax-friendly states for retirees. You can also use the map to navigate to our state tax guides which include detailed information about income, sales, property, gasoline, estate, and other taxes that impact retirees in each of the 50 states and the District of Columbia. This information may help you compare taxes for retirees by state.

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Worst States to Retire in Due to Taxes: If a primary concern as you consider your retirement destination is saving money on taxes, the places on this list are the worst states to retire in. That's because high property taxes and taxes on traditional types of retirement income, like Social Security, pensions, and distributions from a 401(k) or IRA, make these states more expensive than most for many retirees.

Article sources

Tax map sources: Data for state tax guides is gathered from several sources including the U.S Census Bureau, state government websites, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.

Katelyn has more than 6 years’ experience working in tax and finance. While she specializes in tax content, Katelyn has also written for digital publications on topics including insurance, retirement and financial planning and has had financial advice commissioned by national print publications. She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs.