More than half of American's are unsure if they will be able to live financially stable during their retirement and that over 39% are not contributing towards a pension to their retirement account. As the majority of us are financially unprepared for our retirement, lot's of future retirees consider moving to another state with a lower cost of living and more affordable healthcare.

With a tax rate rank of 50, New York State has the highest total tax burden in the United States, despite not having the highest cost of living. In 2022, the state's tax burden was 15.9%, which is significantly higher than the national average. New Yorkers paid an average of $3,573 in state and local taxes per person in 2022, and $3,359 of that was in property taxes.

California has the highest cost of living in the United States and the fifth-highest tax rates. With a tax rate rank of 46, The state's individual income tax rate is 13.3%, which is the highest among states that impose an individual income tax. In 2022, Californians paid an average of $3,743 in state and local taxes per person, and $2,100 of that was in property taxes.

With a tax rate rank of 49, Connecticuts 2022 tax burden of 15.4% ranks the second highest in the nation, and the state collected $2,845 per capita in state and local taxes. Connecticut offers no exemptions or tax credits for most pensions or other retirement income including Social Security benefits.

Vermont taxes most retirement income at ordinary income tax rates, including Social Security benefits, which are taxed up to 85% in sync with the federal rate of benefits. With a tax ran of 47, Vermont has the ninth-highest cost of living and the fourth-highest tax rate. Its 2022 tax burden is 13.6%, and it collected $1,906 per capita in state and local taxes.

Until 2018, New Jersey imposed both an inheritance tax and an estate tax. While close relatives are generally excluded from the inheritance tax, other beneficiaries face tax rates ranging from 11% to 16% on inheritances over $500. New Jerseys tax rate rank stands at 45 and the state collected $1,817 per capita in state and local taxes, while property tax collections are about $3,539 per person.

While there is no inheritance tax, the estate tax rates in Maine range from 8% to 12%. With a tax rate rank of 41, the tax applies to estates worth more than $6.8 million as of the 2024 tax year. 7 22 While Maine does not tax Social Security income, other forms of retirement income are taxed at rates as high as 7.15%.