Come here often? Make XFINITY.com your homepage » close

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

#7 Oregon

State Income Tax: 5% to 9.9%

State Sales Tax: None

Estate Tax/Inheritance Tax: Yes/No

First, the upside: There's no state sales tax in the Beaver State. But Oregon's top income tax rate of 9.9% is the second-highest in the nation -- between Hawaii's 11% rate and California's 9.3%. The majority of Oregonians pay a 9% rate on their taxable income, which kicks in at $7,950 for individuals and $15,900 for married couples. Although the Beaver State does not tax Social Security benefits, it does tax public and private pensions, IRAs, and 401(k) and other retirement plan distributions. Oregonians 62 and older with incomes of $22,500 or less ($45,000 or less for married couples) may qualify for a tax credit to reduce the amount of retirement income that is taxed. Oregon also jettisoned its inheritance tax, replacing it with an estate tax applied to assets in excess of $1 million.

(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.

Ad Info - Ad Feedback

Ad Info - Ad Feedback

Loading...