Come here often? Make your homepage » close


Your XFINITY Connect session has timed out due to inactivity. Click here to go back close

Kiplinger: 10 Least Tax-Friendly States for Retirees

#9 New Jersey

State Income Tax: 1.4% to 8.97%

State Sales Tax: 7%

Estate Tax/Inheritance Tax: Yes/Yes

Its nickname may be the Garden State, but New Jersey is no Eden for some retirees. The Tax Foundation says New Jersey's combined state and local tax burden of more than 12% is the highest in the nation, thanks largely to sky-high property taxes. The Garden State's median property taxes rank number one in both amount paid and percentage of home values. But there are a few bright spots: New Jersey does not tax Social Security benefits and military pensions. It also allows residents 62 or older with incomes of $100,000 or less to exclude up to $15,000 ($20,000 for married couples filing jointly) of retirement income, including pensions, annuities and IRA withdrawals, from state income taxes. Groceries, medicine and clothing are exempt from the 7% statewide sales tax.


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.

Ad Info - Ad Feedback

Ad Info - Ad Feedback