Kiplinger Magazine Ranks RI Low for Retirees
Saturday, November 13, 2010
Kiplingers magazine scores RI down towards the bottom of their ranking for states to retire. According to Kiplinger, "The Ocean State is particularly tough on retirees. Not only does it tax Social Security benefits, similar to the way the federal government taxes up to 85% of benefits, it taxes virtually all other sources of retirement income."
Rhode Island
State Income Tax: 3.75% – 9.9%
State Sales Tax: 7%
Inheritance Tax: No
The analysis is that, "Retirees face plenty of tax shoals in the Ocean State. Social Security benefits are taxed just like they are by the federal government. Rhode Island nicks virtually all other sources of retirement income, too. Starting this year, capital gains are taxed as ordinary income, eliminating the lower capital-gains rate in effect before 2010. The nation’s smallest state also has one of the biggest statewide sales-tax rates — 7% — although it excludes food, medicine, some clothing and precious metal bullion. The Tax Foundation says Rhode Island’s median real estate taxes are the fifth-highest in the U.S."
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