2) Washington, D.C.
While not a state, the US capital is a US location that must be mentioned when advising places to avoid if you want to stretch those retirement dollars. The nation’s seat of power comes a close second to New York City when it comes to high cost of living.
They also have the second-highest median home value of $424,400 after Hawaii. The D.C. area, while having the highest average income for people 65 years and older, also has a high poverty rate among seniors at 14%. The Tax Foundation also reported that D.C. has one of the highest income tax rates in the United States at 8.9%. Even the sales tax is high at 5.75%. Moreover, estates valued at $1 million and above are subject to estate tax, which can go over 16%. Nevertheless, social security benefits and pensions, up to $3,000 of military, federal, and pensions, are exempted from taxes. Peace of mind is also something elusive in the state capital, as violent crimes occur at 3.5 times the national rate. Property crime rate is higher than average in D.C., too.