10 States Where Retirees May Save Less

What would a retirement income picture look like without Social Security taxes? Mr. Donald Trump, the Republican candidate in the presidential election, has proposed an economic plan to eliminate the Social Security income tax and reduce the corporate tax rate.

While this program would provide some seniors with immediate relief, this type of federal tax would not benefit all retirees at all. This is especially true for retirees who live in high-tax areas. Because Trump’s proposed federal tax cuts would not affect state taxes, these retirees would save less.

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Using GOBankingRates data to rank all 50 states based on the best and worst for wealthy retirees, we pulled the 10 states with the highest tax and federal taxes that still make it difficult for retirees to save more money if Social Security taxes are eliminated.

• State sales tax: 8.85%

• Average tax rate: 0.75%

• Estimated property tax: $6,017

• Average Social Security benefits: $1,883

• Federal tax on Social Security benefits: No

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• State sales tax: 7.81%

• Average tax rate: 0.55%

• Estimated property tax: $3,087

• Average Social Security benefits: $2,022

• Federal tax on Social Security benefits: Yes

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• State sales tax: 6.35%

• Average tax rate: 1.79%

• Estimated property tax: $7,510

• Average Social Security benefits: $2,171

• Federal tax on Social Security benefits: Yes

• State sales tax: 4.50%

• Average tax rate: 0.32%

• Estimated property tax: $3,180

• Average Social Security benefits: $1,942

• Federal tax on Social Security benefits: No

• State sales tax: 6.25%

• Average tax rate: 1.14%

• Estimated property tax: $7,227

• Average Social Security benefits: $2,080

• Federal tax on Social Security benefits: No

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• State sales tax: 6.60%

• Average tax rate: 2.23%

• Estimated property tax: $11,806

• Average Social Security benefits: $2,139

• Federal tax on Social Security benefits: No

• State sales tax: 7.62%

• Average tax rate: 0.67%

• Estimated property tax: $2,016

• Average Social Security benefits: $1,789

• Federal tax on Social Security benefits: Yes

The Story Continues

• State sales tax: 8.53%

• Average tax rate: 1.40%

• Estimated property tax: $6,108

• Average Social Security benefits: $1,931

• Federal tax on Social Security benefits: No

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• State sales tax: 7.00%

• Average tax rate: 1.40%

• Estimated property tax: $6,470

• Average Social Security benefits: $2,018

• Federal tax on Social Security benefits: Yes

• State sales tax: 6.36%

• Average tax rate: 1.83%

• Estimated property tax: $7,035

• Average Social Security benefits: $2,045

• Federal tax on Social Security benefits: Yes

Editor’s note about the poll: GOBankingRates is non-political and aims to report on all economic conditions in an unbiased and balanced manner on political and financial issues. You can find coverage of this story at GOBankingRates.com.

Tax data is taken from The Tax Foundation and is correct as of May 7, 2024.

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This article originally appeared on GOBankingRates.com: Trump Wants to Cut Social Security Taxes: 10 States Where Retirees Will Save Less