Dreaming of a stress-free retirement? Location is key, and some states, with their high costs of living and hefty taxes, can devour your retirement savings faster than you can say “401(k).” Let’s countdown to the most expensive states to retire in. Yes, we’re talking real numbers, so you can make informed decisions about where to spend your golden years without breaking the bank.
#19. Maine
Fancy a lobster dinner in your retirement? It might cost you more than you’d like in Maine. With living costs 13% above the national average and social security taxed, it’s a pricey start to our list. Are the picturesque landscapes worth it?
#18. Oregon
Oregon tempts with its natural beauty, but with an average combined state and local tax rate of about 8.17%, your wallet might feel the pinch. Portland’s cost of living, for example, is nearly 30% higher than the national average. Ready to compromise?
#17. Minnesota
Love lakes and long winters? Minnesota’s got them, plus a top income tax rate of 9.85% that might chill your retirement savings. With social security taxation for some, is the Land of 10,000 Lakes for you?
#16. Rhode Island
Small state, big expenses. Expect property taxes around $2,139 per $100,000 in home value and a cost of living 22% above average. Can its charm outweigh the costs?
#15. Vermont
Vermont’s idyllic scenery comes with a price tag: a cost of living 12% higher than the national average and taxes on social security for some. Does the allure of the Green Mountain State outweigh its price?
#14. New Jersey
With the highest property taxes in the nation, averaging $8,104 annually, New Jersey can be a tough sell. Does the proximity to NYC justify the costs?
#13. Washington
No income tax here, but Seattle’s cost of living is 49% above the national average. Plus, expect to pay about 8.92% in sales tax. Is the Pacific Northwest calling your name loudly enough?
#12. New York
Sky-high living costs in NYC and beyond, with a top income tax rate of 8.82%. Property taxes average $1,812 per $100,000 of home value. Is the Empire State worth its empire-sized costs?
#11. Illinois
Illinois offers no tax on social security, but property taxes average $4,157, and Chicago’s cost of living is 23% above the national average. Ready for the Windy City’s financial gusts?
#10. Connecticut
Facing a cost of living 21% higher than average and property taxes around $2,847 per $100,000 of home value, Connecticut challenges retirees’ budgets. Are its New England charms enough?
#9. Maryland
With an income tax rate up to 5.75% and additional local taxes, Maryland’s cost of living is 29% above the national average. Does the Free State’s cost set you free?
#8. Massachusetts
A cost of living 38% above average and property taxes about $1,560 per $100,000 make Massachusetts a pricey proposition. Do the history and culture justify the expense?
#7. California
Top-tier for a reason: a staggering cost of living 52% above the national average in places like San Francisco. With a top income tax rate of 13.3%, is the California dream achievable on your budget?
#6. Alaska
Surprised? Despite no state sales or income tax, Alaska’s remote location spikes costs, with living expenses about 28% higher than average. Is the Last Frontier calling you, expenses be damned?
#5. Colorado
Beauty has its price: a cost of living 12% above average and housing costs skyrocketing. With an average property tax rate of 0.49%, does the Mile High City elevate your retirement plans?
#4. Nevada
Vegas baby, but at what cost? Despite no income tax, living costs in cities like Reno and Las Vegas can be high. Are you betting on Nevada for retirement?
#3. Hawaii
The ultimate paradise with a cost of living 88% above the national average. With median home prices over $660,000, is island life in your budget?
#2. Washington D.C.
Not a state, but with living costs 39% above average and hefty taxes, it’s near the top. Is the political center of the U.S. the center of your retirement dreams?
#1. California (Reprise)
Worth repeating for its eye-watering costs. Dreamy weather, but with an average home price north of $700,000 and milk at $4 per gallon, it’s a tough call. Golden years in the Golden State: luxury or lunacy?
What’s Your Number?
As we tally the costs, it’s clear some states demand a heftier retirement fund than others. High costs of living, taxing taxes, and other expenses can turn dream destinations into fiscal nightmares. So, where does your retirement fantasy take you? Somewhere sunny, snowy, or perhaps a little more affordable?
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
For transparency, this content was partly developed with AI assistance and carefully curated by an experienced editor to be informative and ensure accuracy.
