10 States Where Retirees Would Save the Least
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What could a retiree’s financial picture look like without Social Security taxes? Donald Trump, the Republican candidate for president, has presented an economic plan to eliminate tax on Social Security wages along with a lowered corporate tax rate.
While this plan would provide some seniors with immediate relief, this type of federal tax cut wouldn’t be universally beneficial to all in retirement. This is particularly true of retirees who live in states where they are taxed the most. Because Trump’s proposed federal tax cut would not affect state taxes, these retirees ultimately would save the least.
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Utilizing GOBankingRates data ranking all 50 states based on the best and worst to retire rich in, we pulled 10 states with tax rates and state taxes that still would make it complicated for retirees to save a lot of money if Social Security taxes were eliminated.
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State sales tax: 8.85%
Median property tax rate: 0.75%
Estimated property tax: $6,017
Average Social Security benefits: $1,883
State tax on Social Security benefits: No
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State sales tax: 7.81%
Median property tax rate: 0.55%
Estimated property tax: $3,087
Average Social Security benefits: $2,022
State tax on Social Security benefits: Yes
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State sales tax: 6.35%
Median property tax rate: 1.79%
Estimated property tax: $7,510
Average Social Security benefits: $2,171
State tax on Social Security benefits: Yes
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State sales tax: 4.50%
Median property tax rate: 0.32%
Estimated property tax: $3,180
Average Social Security benefits: $1,942
State tax on Social Security benefits: No
DenisTangneyJr / Getty Images/iStockphoto
State sales tax: 6.25%
Median property tax rate: 1.14%
Estimated property tax: $7,227
Average Social Security benefits: $2,080
State tax on Social Security benefits: No
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State sales tax: 6.60%
Median property tax rate: 2.23%
Estimated property tax: $11,806
Average Social Security benefits: $2,139
State tax on Social Security benefits: No
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State sales tax: 7.62%
Median property tax rate: 0.67%
Estimated property tax: $2,016
Average Social Security benefits: $1,789
State tax on Social Security benefits: Yes
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State sales tax: 8.53%
Median property tax rate: 1.40%
Estimated property tax: $6,108
Average Social Security benefits: $1,931
State tax on Social Security benefits: No
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State sales tax: 7.00%
Median property tax rate: 1.40%
Estimated property tax: $6,470
Average Social Security benefits: $2,018
State tax on Social Security benefits: Yes
DenisTangneyJr / iStock.com
State sales tax: 6.36%
Median property tax rate: 1.83%
Estimated property tax: $7,035
Average Social Security benefits: $2,045
State tax on Social Security benefits: Yes
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
Tax data was sourced from The Tax Foundation and is accurate as of May 7, 2024.
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This article originally appeared on GOBankingRates.com: Trump Wants To Eliminate Social Security Taxes: 10 States Where Retirees Would Save the Least
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