17.Kansas: not so tax-friendly
Kansas is a state that retirees would better avoid if they want to escape high taxes. This state is taxing distributions from private retirement plans(including IRAs and 401(k) plans), but also out-of-state public pensions.
- The State Income Tax Range is 3.1%(on taxable income from $2,501 to $15,000 for single filers and from $5,001 to $30,000 for joint filers)- 5,7% (on more than $30,000 of taxable income for single filers and more than $60,000 for joint filers);
- The Average Combined State and Local Sales Tax Rate is 8.7%;
- The Median Property Tax Rate is $1,369/$100,000 of assessed home value;
- No Estate Tax or Inheritance Tax.
18.Kentucky: tax-friendly
The Bluegrass State is not messing around. It exempts Social Security benefits from state income taxes, but also up to $31,110/person of a wide variety of retirement income(public and private pensions and annuities).
- The State Income Tax Range is 5%;
- The Average Combined State and Local Sales Tax Rate is 6%;
- The Median Property Tax Rate is $829/$100,000 of assessed home value;
- There’s no Estate Tax, but there is Inheritance Tax.
19.Louisiana: tax-friendly
In Louisiana, Social Security benefits aren’t taxed, and the military, federal government, state, and local government pensions are exempt from state income taxes as well.
- The State Income Tax is 2%(on $12,500 or less of taxable income for single people, $25,000 for couples)- 6%(on more than $50,000 of taxable income; $100,000 for joint filers);
- The Average Combined State and Local Sales Tax Rate is 9.55%;
- The Median Property Tax Rate is $534/$100,000 of assessed home value;
- No Estate Tax or Inheritance Tax.
20.Maine: not tax-friendly
Retirees who consider Maine as a retirement destination should know that it’s a pretty difficult state in matters of taxes. Maine’s median annual tax rate per $100,000 of home value is more than $200 above the national average.
- The State Income Tax Range is 5.8% (on taxable income less than $22,450 for single filers; less than $44,950 for married people filing jointly)- 7.15% (on taxable income of $53,150 or more for single filers and $106,350 for joint filers);
- The Average Combined State and Local Sales Tax Rate is 5.5%;
- The Median Property Tax Rate is $1,295/$100,000 of assessed home value;
- There is Estate Tax, but no Inheritance Tax.
