"6. Massachusetts Massachusetts taxes most retirement income, including pensions and distributions from IRAs and 401(k)s. Property taxes in desirable suburban areas often exceed $10,000 annually on modest homes. Social Security is exempt, but nearly everything else is fair game. When adjusted for income levels, Massachusetts' tax burden improves, ranking 15th in the country. 5. Connecticut Connecticut's burden comes from some of the nation's highest property taxes and a progressive income tax topping out at 6.99%."
"4. New Jersey New Jersey combines crushing property taxes with a progressive income tax reaching 10.75%. Property bills in many counties exceed $10,000 annually. Social Security is exempt, but 401(k) and IRA withdrawals face full state income tax. 3. California California's top marginal income tax rate of 13.3% is the highest in the nation. The state taxes all retirement income except Social Security, meaning pension distributions, IRA withdrawals, and investment income all face steep rates."
New York City faces a proposed 9.9% property tax increase amid broader state and local tax concerns. Data from the Tax Foundation, adjusted by custom weighting, identifies the five states with the highest combined state and local tax burdens. Massachusetts and Connecticut levy significant retirement and property taxes, though their burdens fall when adjusted for income. New Jersey imposes very high property taxes plus progressive income tax and taxes on retirement withdrawals. California has the nation's top marginal income tax rate (13.3%) and taxes nearly all retirement income except Social Security. Rankings were reported both absolute and income-adjusted.
Read at 24/7 Wall St.
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