Rhode Island
Population: 1,093,734
Tax on retirement income: Yes
Cost of Living for Retirees: 11.20%
State income tax: 3.75% to 5.99%
Average property tax: 1.53% of market value
This state offers some of the most scenic views in the country. And if you choose to visit, remember to pack a camera to snap some photos of all the incredible views. But you’ll be hit with a tidal wave of taxation if you decide to relocate to Rhode Island once you’ve retired.
All retirement income is fully taxable. And this includes Social Security benefits, as long as it’s federally taxed.
But, citizens who earn a particular amount or less, that is: $85,150 for individuals and $106,400 for joint filers, are excused from paying state taxes on their Social Security benefits. Property taxes in this state are the 10th highest in the country.
However, homeowners aged 65 or older with $30,000 or less qualify for a state tax credit. And if you’re still paying off a mortgage, you may be due for a money-saving refinance.
The Ocean State also has an estate tax that ranges anywhere from 0.8% to 16% on properties worth more than $1.6 million, making it one of only a couple of states that tax estates esteemed at under $2 million.
When it’s all said and done, just remember that if the cost of living in a certain state is so high that your quality of life suffers, it’s not worth buying a property there.
We hope you found this article useful, and we also recommend checking out: 6 Amazing Florida Neighborhoods to Retire in 2023
Leave a Reply