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Here are somestates to avoid due to their taxes and overall costs, according to experts.
California
California has one of the highest state income taxes at 12.3%.
This tax rate applies to all forms of retirement income (aside from Social Security).
Property taxes can also be high for newcomers, though this depends on factors like property condition and county.
California also ranks second-highest in terms of overall cost of living with acost-of-living (COL) index of 143.
Its overall COL index is 139.9.
Everything, but especially housing and utilities, are far more expensive than the national average.
The freezing winters could also be a turnoff.
Thinking of retiring in Massachusetts, New Jersey or Connecticut?
Your savings could vanish faster than the autumn leaves.
Massachusetts individual income tax rate is 5%.
Property taxes range from 1% to 2%, depending on where you live.
New Jersey
As Ellison pointed out, New Jersey might not be the best retirement destination either.
New Jersey has a graduated state income tax ranging from1.4% to 10.75%.
When you tack on federal income tax, thats a hefty chunk out of your money.
The states effective property tax rate is also high at 2.08%.
Dont forget about property taxes, though.
Connecticut has an effective property tax rate of1.96%, the third-highest in the country.
Taxes are high, too, even if you dont live in the big city.
New York is another state that is very high in terms of taxes, said Nally.
So, even retiring well away from Manhattan may prove to be an expensive decision.
The average property tax rate is 1.4%.
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