Best and worst states to retire rich

Andrew DePietro
The Worst State for Retirement When It Comes to Taxes
The Worst State for Retirement When It Comes to Taxes

Whether you have enough money saved for retirement is a question on the minds of many soon-to-be retirees — and with good reason. A GOBankingRates survey found that 28 percent of baby boomers and seniors (aged 55 and over) don't have any retirement savings, and 17.3 percent have less than $10,000 saved. Depending on where you retire, however, you could maximize how far your retirement income can go, and possibly even help you retire rich. You just need to choose the best state to retire.

To make finding the best state to retire rich easier for you, GOBankingRates surveyed all 50 states and the District of Columbia on these four components:

  • Taxes: state sales tax, state tax on Social Security benefits and property tax

  • Living expenses: average home listing price, median home value and a cost of living index

  • Banking: savings account interest rate and two-year CD account interest rate

  • Health and Social Security: average health insurance premium, average Social Security benefit and Medicare spending per capita

The result: your financial guide to the best and worst states to retire rich. Click through to find out where your state ranks and where you should think about moving if you want to retire wealthy.

Complete Ranking of the Best and Worst States to Retire Rich

Do you live in a state that offers enough financial benefits for retirees? Check out the table below see how your state ranks — and if you should consider moving to one of the best states to retire rich.

Rank
State
State Sales Tax
State Tax on Social Security Benefits
Property Tax
Average Listing Price
Median Home Value
Cost of Living Index
GBR Savings Interest
GBR 2-Year CD Interest
Average Health Insurance Premium
Average Social Security Benefits
Medicare Spending per Capita
TOTAL SCORE
51
Hawaii
4.35%
none
0.28%
$865,445
$557,500
168.6
0.17
0.659
$262.00
$1,302.53
$6,941.74
7.52354
50
Vermont
6.17%
taxed to the extent they are taxed at the federal level
1.71%
$285,253
$216,500
123.8
0.2
0.629
$468.00
$1,320.04
$7,882.76
7.137243
49
North Dakota
6.82%
taxed to the extent they are taxed at the federal level
1.11%
$257,624
$202,600
101.2
0.09
0.507
$304.00
$1,228.89
$7,972.92
6.860176
48
Montana
0.00%
taxable; amount may be different than federally taxable amount because Montana taxes some types of income that the federal does not and vice versa
0.86%
$321,792
$189,300
102.7
0.053
0.471
$322.00
$1,249.74
$7,082.48
6.427847
47
New Mexico
7.51%
taxed, but can be included as part of an overall retirement income exemption of up to $8K per person
0.73%
$240,365
$166,400
95.6
0.187
0.675
$183.00
$1,227.11
$7,546.88
6.405398
46
Alaska
1.78%
none
1.18%
$311,329
$268,600
133.5
0.01
0.919
$719.00
$1,259.86
$8,416.94
6.385461
45
Colorado
7.52%
younger than 65, up to $20K can be excluded; 65 and older, up to $24K can be excluded
0.61%
$507,896
$302,200
101.9
0.123
0.72
$279.00
$1,307.39
$8,020.22
6.319697
44
West Virginia
6.20%
taxed to the extent they are taxed at the federal level
0.59%
$180,253
$96,600
103.7
0.103
0.511
$341.00
$1,273.43
$8,260.07
5.942801
43
Maine
5.50%
none
1.28%
$240,420
$177,578
114.7
0.275
0.653
$285.00
$1,226.73
$8,059.44
5.855244
42
Nebraska
6.87%
taxpayer can subtract SS income included in federal AGI if AGI is less than or equal to $58K for married couples filing jointly or $43K for other filers
1.84%
$224,778
$142,300
92.3
0.259
0.713
$313.00
$1,307.27
$8,547.83
5.81396
41
Rhode Island
7.00%
RI does not tax for single filers w/ up to $80K in AGI and married filers w/ up to $100K in AGI
1.67%
$358,132
$233,600
123.3
0.317
0.806
$263.00
$1,340.63
$9,698.08
5.797576
40
South Dakota
5.84%
none
1.32%
$258,448
$164,000
102.5
0.13
0.639
$309.00
$1,234.41
$7,858.84
5.77155
39
California
8.48%
none
0.81%
$649,492
$463,600
134.3
0.321
0.666
$245.00
$1,284.83
$10,375.77
5.666063
38
District of Columbia
5.75%
none
0.57%
$683,165
$498,200
146.8
0.317
0.819
$243.00
$1,227.95
$11,379.37
5.576164
37
Minnesota
7.27%
taxed to the extent they are taxed at the federal level
1.19%
$266,867
$190,000
101.5
0.13
0.584
$235.00
$1,351.05
$8,446.24
5.53334
36
Oregon
0.00%
none
1.09%
$360,326
$274,500
129.5
0.06
0.573
$261.00
$1,323.17
$7,415.92
5.378181
35
Missouri
7.86%
not taxed for single taxpayers w/ AGI less than $85K and married couples w/ AGI less than $100K
1.02%
$185,533
$134,900
91.5
0.259
0.638
$287.00
$1,300.51
$8,844.09
5.362012
34
Utah
6.69%
benefits taxed; may qualify for retirement-income tax credit
0.68%
$453,881
$227,200
92.4
0.632
0.774
$244.00
$1,332.23
$8,074.87
5.352848
33
Arkansas
9.30%
none
0.62%
$174,951
$116,500
91.4
0.052
0.648
$310.00
$1,247.96
$8,062.16
5.197333
32
Kansas
8.60%
exempt from Kansas income tax for residents w/ federal AGI of $75K or less
1.39%
$160,639
$123,100
90.9
0.315
0.672
$248.00
$1,355.46
$8,657.73
5.066309
31
Massachusetts
6.25%
none
1.21%
$532,304
$344,700
130.4
0.325
0.825
$456.39
$1,339.41
$10,602.20
4.982097
30
Connecticut
6.35%
exempt for individual taxpayers w/ federal adjusted gross income less than $50K and married taxpayers filing jointly w/ federal AGI less than $60K
1.98%
$421,289
$236,200
131.8
0.105
0.63
$318.00
$1,447.29
$10,999.54
4.979006
29
Washington
8.89%
none
1.09%
$324,028
$296,500
106
0.027
0.65
$227.00
$1,371.20
$8,007.56
4.978202
28
New York
8.49%
none
1.64%
$454,401
$262,600
135.6
0.248
0.77
$369.00
$1,364.74
$10,896.66
4.901731
27
Idaho
6.03%
none
0.75%
$275,707
$175,400
88.2
0.01
0.733
$273.00
$1,284.21
$7,642.91
4.83184
26
Iowa
6.79%
none
1.49%
$175,168
$132,900
92
0.128
0.727
$284.00
$1,314.34
$7,868.87
4.789315
25
Wisconsin
5.41%
none
1.96%
$213,561
$155,600
98.1
0.089
0.662
$326.00
$1,354.84
$8,102.28
4.777097
24
Wyoming
5.42%
none
0.61%
$269,326
$193,800
92.8
0.03
0.598
$426.00
$1,328.60
$7,805.82
4.729093
23
North Carolina
6.90%
none
0.85%
$284,625
$151,100
95.8
0.275
0.708
$409.00
$1,320.29
$8,633.42
4.550421
22
Kentucky
6.00%
none
0.85%
$190,997
$129,400
90
0.078
0.683
$227.00
$1,242.81
$8,688.83
4.537447
21
Tennessee
9.46%
none
0.75%
$236,339
$132,100
90.3
0.098
0.643
$281.00
$1,304.31
$8,685.64
4.533566
20
Nevada
7.98%
none
0.86%
$322,917
$218,400
106.5
0.08
0.616
$261.00
$1,313.43
$9,597.56
4.523962
19
Alabama
8.97%
none
0.43%
$204,694
$123,300
90.2
0.1
0.764
$288.00
$1,285.68
$8,458.83
4.475022
18
Arizona
8.25%
none
0.80%
$317,704
$207,000
98.8
0.03
0.622
$207.00
$1,343.51
$8,622.82
4.427975
17
Louisiana
9.00%
none
0.51%
$223,480
$147,899
93.4
0.263
0.834
$332.00
$1,212.45
$10,286.79
4.408506
16
South Carolina
7.22%
none
0.57%
$260,196
$137,100
97.5
0.083
0.553
$314.00
$1,326.43
$8,585.57
4.397986
15
Texas
8.17%
none
1.90%
$320,643
$155,400
92.6
0.241
0.772
$256.00
$1,270.87
$10,572.49
4.395333
14
Oklahoma
8.82%
none
0.86%
$185,348
$113,900
89.7
0.238
0.79
$295.00
$1,277.14
$9,005.07
4.382783
13
Illinois
8.64%
none
2.32%
$249,180
$160,300
96.5
0.278
0.582
$198.00
$1,347.56
$9,769.70
4.346795
12
New Hampshire
0.00%
none
2.15%
$278,336
$227,800
118.2
0.1
0.75
$261.00
$1,393.85
$8,428.49
4.29087
11
Virginia
5.63%
none
0.78%
$330,773
$233,800
94.5
0.342
0.761
$276.00
$1,336.22
$8,289.62
4.224551
10
Georgia
7.01%
none
0.95%
$264,670
$145,900
91.7
0.3
0.623
$254.00
$1,304.44
$8,944.09
4.219738
9
Ohio
7.14%
none
1.55%
$185,335
$120,000
92.5
0.101
0.597
$234.00
$1,300.05
$9,565.06
4.211796
8
Mississippi
7.07%
none
0.80%
$180,209
$115,400
83.5
0.14
0.688
$277.00
$1,238.83
$9,447.99
4.200191
7
Pennsylvania
6.34%
none
1.54%
$203,333
$153,600
103
0.246
0.632
$276.00
$1,356.68
$9,692.19
3.902441
6
New Jersey
6.97%
none
2.38%
$320,361
$289,200
125.6
0.367
0.775
$330.00
$1,452.47
$11,203.17
3.705415
5
Florida
6.66%
none
1.06%
$354,540
$187,200
100.5
0.38
0.729
$262.00
$1,309.10
$10,707.92
3.703413
4
Maryland
6.00%
none
1.10%
$323,530
$255,000
121.1
0.073
0.679
$249.00
$1,371.89
$11,044.06
3.618791
3
Indiana
7.00%
none
0.86%
$157,435
$116,000
88
0.25
0.534
$298.00
$1,379.93
$9,213.13
3.306638
2
Michigan
6.00%
none
1.78%
$173,888
$123,000
91.2
0.086
0.647
$226.00
$1,403.64
$10,064.26
3.03235
1
Delaware
0.00%
none
0.55%
$289,375
$210,800
102.8
0.35
0.542
$356.00
$1,414.34
$9,904.68
2.520997

Methodology: GOBankingRates ranked these states based on the results of original research and analysis of costs affecting retirees. This cost analysis was based on four types of factors affecting retirees: taxes, living expenses, banking, and healthcare and Social Security. These four types of factors were broken down as into sets of data points.

For taxes, (1) state sales tax rates, sourced from The Tax Foundation; (2) property tax rates, sourced from The Tax Foundation; (3) state tax on Social Security benefits, which was weighted twice as much as other tax factors, sourced from Kiplinger. Three factors were included among living expenses category: (1) average listing price, sourced from Trulia the week of May 11, 2016; (2) median home value, sourced from Zillow's April 2016 data; (3) cost of living index, sourced from MissouriEconomy.org, which was weighted twice as much as average listing price and four times as much as median home value. Two data points were included in the banking category: (1) savings account interest rates, sourced from GOBankingRates' database; (2) 2-year CD account interest rates, sourced from GOBankingRates' database, with both data points weighted one-quarter. The health and Social Security category included three data points: (1) average health insurance premium, sourced from the Kaiser Family Foundation; (2) average Social Security benefits, sourced from the Social Security Administration; and (3) Medicare spending per capita, sourced from the Centers for Medicare and Medicaid Services.

This article originally appeared on GOBankingRates.com: Best and Worst States to Retire Rich

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