Taxes for retirees 2023 in the USA

Taxes for retirees 2023 in the USA: what are the most favorable states for retirees?

Find out which states in the United States help stretch retirees’ savings as much as possible, thanks to their low taxes.

Many elderly people in the United States are planning their retirement for this 2023 and are considering moving to another state to have more favorable tax conditions. Therefore, in this note we will tell you which places in the country have the lowest state taxes so that you can stretch your savings to the maximum during retirement, since this can be significant to have a better quality of life.

The states that we will show you below are favorable mainly for retirees, since they can be freed from the Social Security benefits of state income. In addition, they exempt from other additional retirement income such as private pensions or IRA withdrawals.

On the other hand, they have low or affordable sales or property tax rates for retirees. Look at the table that we have left you with the 10 most favorable states for people who plan to retire soon in the United States and thus make the most of the funds earned.

What are the most favorable states for retirees?

Tennessee

  • State income tax range: None.
  • Average Combined State and Local Sales Tax Rate: 9.547%.
  • Median property tax rate: $560 per $100,000 of assessed home value.
  • Wealth or inheritance tax: None.

Idaho

  • State income tax range: 1% of taxable income for single filers up to $1,588 and up to $3,176 for joint filers. 6% of taxable income for single filers above $7,939 and above $15,878 for joint filers. (2021 figures)
  • Average Combined State and Local Sales Tax Rate: 6.02%.
  • Median property tax rate: $492 per $100,000 of assessed home value.
  • Wealth or inheritance tax: None.

Arizona

  • State income tax range: 2.55% on taxable income for single filers up to $28,653 and up to $57,305 for joint filers. 2.98% on taxable income above those amounts for single and joint taxpayers, respectively.
  • Average Combined State and Local Sales Tax Rate: 8.37%
  • Median property tax rate: $508 per $100,000 of assessed home value.
  • Wealth or inheritance tax: None

D.C.

  • State income tax range: 4% on the first $10,000 of taxable income and 10.75% on the first million dollars.
  • Average Combined State and Local Sales Tax Rate: 6%
  • Median property tax rate: $552 per $100,000 of assessed home value.
  • Wealth or inheritance tax: Inheritance tax.

South Carolina

  • State income tax range: 3% (on taxable income from $3,200 to $16,039) to 6.5% (on taxable income over $16,039).
  • Average Combined State and Local Sales Tax Rate: 7.44%.
  • Median property tax rate: $518 per $100,000 of assessed home value.
  • Wealth or inheritance tax: None.

Snowfall

  • State income tax range: None.
  • Average Combined State and Local Sales Tax Rate: 8.23%.
  • Median property tax rate: $484 per $100,000 of assessed home value.
  • Wealth or inheritance tax: None.

Wyoming

  • State income tax range: None.
  • Average Combined State and Local Sales Tax Rate: 5.36%.
  • Median real estate tax rate: $545 per $100,000 of assessed home value.
  • Wealth or inheritance tax: None.

Colorado

  • State income tax range: 4.4% (fixed rate).
  • Average Combined State and Local Sales Tax Rate: 7.77%.
  • Median real estate tax rate: $485 per $100,000 of assessed home value.
  • Wealth or inheritance tax: None.

hawaii

  • State Income Tax Range: 1.4% (on taxable income up to $2,400 for single filers; up to $4,800 for joint filers) to 11% (on taxable income over $200,000 for single filers; more than $400,000 for joint filers).
  • Average Combined State and Local Sales Tax Rate: 4.44%.
  • Median property tax rate: $273 per $100,000 of assessed home value.
  • Wealth or inheritance tax: Inheritance tax.

Delaware

  • State income tax range: 2.2% (on taxable income from 2001 to $5,000) to 6.6% (on taxable income over $60,000).
  • Average Combined State and Local Sales Tax Rate: 0%.
  • Median property tax rate: $533 per $100,000 of assessed home value.
  • Wealth or inheritance tax: None.

What are the least favorable states for retirees?

There are also other states in the United States that are the worst for retirees in tax matters such as Texas, Wisconsin, New York, Illinois and the worst considered for retired people is New Jersey, since it has the highest average property tax. high, which greatly affects taxpayers.

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