Updated June 2026Reviewed for Tax Year 2026
Worst States for Retirees (Tax-Wise) 2026
All 50 states ranked from least retirement-friendly to most — Social Security taxation, pension treatment, property tax, and sales tax. Sortable table, chart, and CSV download.
Top 10 Least Retirement-Friendly States
Retirement score 0–100. Lower scores rank worse for retirees.
Distance from 100 (higher = worse)
Full Interactive Ranking
Click any column header to sort. Click a state name to open its full tax guide.
| 51 | WyomingWY | 0.00% | 0.61% | 5.44% | 0.00% | 68/100 | 2.85% |
| 49 | AlaskaAK | 0.00% | 1.19% | 1.80% | 0.00% | 66/100 | 2.92% |
| 50 | NevadaNV | 0.00% | 0.55% | 8.24% | 0.00% | 66/100 | 3.57% |
| 44 | New HampshireNH | 0.00% | 1.93% | 0.00% | 0.00% | 61/100 | 3.86% |
| 48 | FloridaFL | 0.00% | 0.89% | 7.00% | 0.00% | 64/100 | 3.88% |
| 47 | TennesseeTN | 0.00% | 0.71% | 9.56% | 0.00% | 63/100 | 4.29% |
| 45 | South DakotaSD | 0.00% | 1.24% | 6.44% | 0.00% | 61/100 | 4.41% |
| 46 | WashingtonWA | 0.00% | 0.98% | 9.38% | 7.00% | 61/100 | 4.77% |
| 42 | TexasTX | 0.00% | 1.80% | 8.25% | 0.00% | 54/100 | 6.08% |
| 38 | North DakotaND | 2.04% | 0.98% | 7.04% | 2.04% | 48/100 | 6.11% |
| 40 | ArizonaAZ | 2.50% | 0.62% | 8.40% | 2.50% | 50/100 | 6.26% |
| 5 | IndianaIN | 3.05% | 0.84% | 7.00% | 3.05% | 20/100 | 6.83% |
| 29 | MontanaMT | 5.90% | 0.74% | 0.00% | 4.10% | 42/100 | 7.38% |
| 25 | KentuckyKY | 4.00% | 0.83% | 6.00% | 4.00% | 38/100 | 7.46% |
| 28 | DelawareDE | 6.60% | 0.61% | 0.00% | 6.60% | 42/100 | 7.82% |
| 24 | ColoradoCO | 4.40% | 0.55% | 7.80% | 4.40% | 38/100 | 7.84% |
| 41 | PennsylvaniaPA | 3.07% | 1.49% | 6.34% | 3.07% | 54/100 | 7.95% |
| 4 | North CarolinaNC | 4.50% | 0.73% | 6.99% | 4.50% | 19/100 | 8.06% |
| 36 | AlabamaAL | 4.50% | 0.40% | 9.25% | 5.00% | 48/100 | 8.08% |
| 22 | UtahUT | 4.65% | 0.63% | 7.47% | 4.65% | 37/100 | 8.15% |
| 35 | LouisianaLA | 4.25% | 0.55% | 9.55% | 4.25% | 47/100 | 8.21% |
| 39 | West VirginiaWV | 5.12% | 0.58% | 6.57% | 5.12% | 48/100 | 8.25% |
| 43 | MississippiMS | 4.70% | 0.79% | 7.07% | 4.70% | 58/100 | 8.40% |
| 17 | ArkansasAR | 4.40% | 0.64% | 9.40% | 4.40% | 36/100 | 8.50% |
| 19 | New MexicoNM | 4.90% | 0.67% | 7.63% | 4.90% | 36/100 | 8.53% |
| 27 | OhioOH | 3.50% | 1.52% | 7.25% | 3.50% | 40/100 | 8.71% |
| 12 | MichiganMI | 4.25% | 1.38% | 6.00% | 4.25% | 32/100 | 8.81% |
| 32 | IdahoID | 5.80% | 0.67% | 6.20% | 5.80% | 46/100 | 9.00% |
| 34 | VirginiaVA | 5.75% | 0.81% | 5.77% | 5.75% | 46/100 | 9.10% |
| 30 | MassachusettsMA | 5.00% | 1.14% | 6.25% | 5.00% | 43/100 | 9.16% |
| 16 | OklahomaOK | 4.75% | 0.89% | 8.99% | 4.75% | 33/100 | 9.23% |
| 15 | MissouriMO | 4.80% | 0.97% | 8.39% | 4.80% | 33/100 | 9.26% |
| 13 | GeorgiaGA | 5.39% | 0.92% | 7.40% | 5.39% | 33/100 | 9.45% |
| 26 | IowaIA | 4.38% | 1.57% | 6.94% | 4.38% | 39/100 | 9.60% |
| 14 | MarylandMD | 5.75% | 1.06% | 6.00% | 5.75% | 33/100 | 9.67% |
| 20 | District of ColumbiaDC | 6.75% | 0.56% | 6.00% | 6.75% | 36/100 | 9.67% |
| 31 | South CarolinaSC | 6.40% | 0.57% | 7.50% | 6.40% | 45/100 | 9.79% |
| 37 | HawaiiHI | 8.20% | 0.31% | 4.50% | 7.25% | 48/100 | 10.17% |
| 11 | WisconsinWI | 5.30% | 1.68% | 5.44% | 5.30% | 28/100 | 10.29% |
| 33 | OregonOR | 8.75% | 0.93% | 0.00% | 9.90% | 46/100 | 10.61% |
| 21 | KansasKS | 5.70% | 1.41% | 8.70% | 5.70% | 37/100 | 11.13% |
| 9 | Rhode IslandRI | 5.99% | 1.53% | 7.00% | 5.99% | 27/100 | 11.15% |
| 18 | NebraskaNE | 5.84% | 1.63% | 6.96% | 5.84% | 36/100 | 11.19% |
| 10 | MaineME | 7.15% | 1.36% | 5.50% | 7.15% | 28/100 | 11.52% |
| 1 | IllinoisIL | 4.95% | 2.27% | 8.88% | 4.95% | 1/100 | 12.15% |
| 6 | ConnecticutCT | 6.00% | 2.14% | 6.35% | 6.90% | 21/100 | 12.19% |
| 8 | New YorkNY | 6.85% | 1.40% | 8.53% | 6.85% | 25/100 | 12.21% |
| 7 | VermontVT | 6.60% | 1.90% | 6.35% | 6.60% | 23/100 | 12.31% |
| 2 | MinnesotaMN | 7.85% | 1.11% | 8.05% | 9.85% | 9/100 | 12.48% |
| 3 | New JerseyNJ | 6.37% | 2.46% | 6.63% | 6.37% | 17/100 | 13.28% |
| 23 | CaliforniaCA | 9.30% | 0.75% | 8.82% | 9.30% | 38/100 | 13.45% |
Methodology
All TaxEase rankings use the same per-state data lake refreshed for tax year 2026.
- Income tax — average effective rate paid by middle-quintile households, cross-checked against Tax Foundation State Individual Income Tax Rates.
- Property tax — property tax paid divided by median market home value (Census ACS 5-year + state DOR aggregates).
- Sales tax — state statutory rate + population-weighted local average (Tax Foundation 2025 mid-year).
- Capital gains — state long-term capital gains rate (often the same as ordinary income).
- Retirement-friendliness score (0–100) —
50 + retirement_bonus − property×1000 − sales×100 − income×150, clamped 0–100. - Overall burden —
income + property×2 + sales×0.30, assuming home value ≈ 2× income and 30% of income spent on taxable goods.
On this page, lower retirement-score values rank higher (worse for retirees).
Cite This Research
Journalists, bloggers, and researchers — please credit TaxEase.money with a link to this page.
- Plain text
Source: TaxEase.money 2026 State Tax Research — "Worst States for Retirees 2026 — Highest Tax Burden" (https://taxease.money/worst-states-for-retirees-tax-wise)- APA
TaxEase Research Team. (2026). Worst States for Retirees 2026 — Highest Tax Burden. TaxEase.money. https://taxease.money/worst-states-for-retirees-tax-wise- MLA
"TaxEase Research Team." Worst States for Retirees 2026 — Highest Tax Burden, TaxEase.money, 2026, https://taxease.money/worst-states-for-retirees-tax-wise.
Press inquiries: research@taxease.money
Data Sources
Every figure is sourced from an official tax authority or non-partisan policy institute.
- Internal Revenue Service (IRS) ↗Federal 2026 brackets (Rev. Proc. 2025-32).
- Tax Foundation — State Tax Rates ↗Cross-state income, property, sales, corporate data.
- U.S. Census Bureau — ACS 5-Year ↗Median home value and effective property tax.
- State Departments of Revenue ↗Authoritative 2026 schedules, forms, and instructions for each state.
- Congressional Research Service (CRS) ↗Non-partisan federal tax analysis.
- Bureau of Labor Statistics — CES ↗Household taxable-spend share used in burden composite.
Related Calculators, Guides & Comparisons
Frequently Asked Questions
- Which state is worst for retirees on taxes?
- Illinois, New Jersey, Connecticut, and Nebraska rank lowest in 2026 — combinations of high property taxes, full pension taxation, or top-bracket income tax on retirement withdrawals.
- Do any states still tax Social Security benefits?
- Yes — Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia still tax some SS benefits, usually with income-based phase-outs.
- Should I move out of a 'worst' state?
- Not necessarily. Healthcare access, family proximity, and housing equity matter. Run our state-vs-state comparisons before deciding.
- Can journalists cite this list?
- Yes — please use the citation block above and link back to this page.
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