3. Washington, D.C.
- Lowest tax rate: 4 percent (on up to $10,000 of taxable income)
- Highest tax rate: 8.95 percent (on more than $1 million of taxable income)
Despite the fact that Washington, D.C. has a lot of government workers, it gives virtually no tax breaks for its retired residents. What can we say… Maybe their comfy desk jobs wouldn’t exist today if it weren’t for our heroes.
4. Utah
- Tax rate: Flat tax of 4.95 percent
The Beehive State can’t brag about how it deals with tax breaks for the retired military. The worst part? The state’s retirement-income tax credit is actually limited. Those who are 65 or older (and they are Utah residents, of course) can apply for a retirement-income tax credit. For one person, the credit has a max of $450, and for married couples, $900.
However, this type of credit is actually phased out at 2.5 cents/dollar of modified adjusted gross income (MAGI); meaning that it’s $32,000 or so for married couples filing jointly and more than $25,000 for singles.
1 thought on “10 Worst States for Military Retirees”
THE GOVERNMENT IN THESE STATES ARE UNGREATFUL! I WOULD TELL THEM, THE NEXT TIME YOU NEED PROTECTION, DO IT YOURSELF!