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Kiplinger: 10 Least Tax-Friendly States for Retirees

#1 Connecticut

State Income Tax: 3% to 6.7%

State Sales Tax: 6.35% to 7%

Estate Tax/Inheritance Tax: Yes/No

Connecticut can be inhospitable to retirees, depending on their income level and where they earned their retirement benefits. Some residents of the Constitution State can exclude their Social Security benefits from state income taxes, but only if their adjusted gross income is less than $50,000 (less than $60,000 for married couples). All out-of-state government and civil-service retirement pensions are fully taxed, but half of military retirement pay is excluded from taxes. The statewide sales tax rate is 6.35%, with luxury items taxed at 7%. Connecticut residents pay the second-highest property taxes in the U.S., according to the Tax Foundation, but residents 65 and older may qualify for an annual property-tax credit or rent rebate.

(iStock)

More From Kiplinger:
The 5 Best U.S. Cities for Retirees
QUIZ: Are You Saving Enough For Retirement?
10 Most Tax-Friendly States for Retirees



The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.

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