The more you earn, the more you will be taxed. Hawaii will be less tax-friendly if your retirement income is more private.
With home expenses 222 percent more than the national average and an estate tax of up to 20%, retiring to Hawaii can be an expensive proposition.
Social Security income is taxed at 25%, inheritance taxes are levied at 12%, and the state has the third-highest property tax in the US, at 1.76 percent.
Pension income has recently become tax-free for seniors earning less than $75,000 per year ($100,000 for joint filers). The same is true for IRA funds up to a maximum of 25%.
Maryland is a tax-friendly state for retirees in that Social Security payouts and 401(k) accounts are tax-free, which is why it doesn't frequently appear on lists like this.
Those having IRA income of more over $34,300, other retirement assets, or a public pension, on the other hand, will pay far more. A potentially crippling estate tax of up to 10%.
Over $20,000 in annual income from private retirement plans, such as an IRA, pension plan, or 401(k), may be subject to the state income tax maximum of 10.9%.
New York has the sixth highest property taxes in the country. It has the 10th highest sales tax rate when including in both state and local rates (8.52 percent).
Private retirement savings, including 401(k)s, IRAs, and out-of-state public pensions, are fully taxed. Its 8.71 percent municipal sales tax is tenth highest in the nation.
Moreover, Kansas has the nation's thirteenth-highest property tax rate, making it somewhat less inviting to buy than to visit.
The good news for retirees is that, while retirement income is taxed, most sources of income, including retirement funds, private pensions, and IRAs, are eligible for deductions.
Anyone looking to buy property in the area will be met with some of the highest overhead prices in the country.