When thinking about retiring there is a lot on people’s minds, and one of the most important issues is how to make the best of the well-earned funds, which is why here we have a compilation of which are the worst states for retirees.
Although Texas is a state that goes easy on taxpayers, the reality is that it does not have income taxes, but in turn makes up for those with property income taxes, which means that the benefits that you would normally get in a state that has high-income taxes like California are not really there, so Social Security benefits, 401(k)s, pensions, and IRAs are not as compensatory as other states.
The state known for it’s warm people, great cheese and the packers has very weak income tax breaks for retirees, and as Texas it has high property tax, so those opportunities that you get to purchase land and keep it becomes more difficult trough time, and with not getting enough benefits from the aforementioned programs like 401(k) IRAs and such may cause people’s money to be spent quicker.
The Empire State has a heavy housing crisis as the property taxes are sky high and even in areas that are far from New York City, the income taxes are still relatively the same. NY is ranked as the 6th most expensive in the country when it comes to homeownership values.
Social Security benefits and income are exempt from most plans in Illinois, however, the same applies to these states, the high property taxes make up for what the other taxation laws lack, for example for a $250,000 property, homeowners pay about $5,183 per year. But there is a light at the end of the tunnel as some seniors can apply for relief and can freeze the property tax from going up.
And the worst state for retirees is: New Jersey
The Garden State has the highest median property tax which represents a big hole in the taxpayer’s pockets as they have to spend even more than in Illinois, where a property that is worth $350,000 would make homeowners pay $7,900 a year, however, there are some senior property tax reliefs, that like the previous state can help retirees freeze the property tax from going up.