At Least We Have Nice Weather.... Minnesota The Worst Tax State For Retirees

ThinkAdvisor highlights the five best and five worst states from a Kiplinger study on the tax environment for retirees.  And guess what...we are number 2 on the worst list.   Although this is probably not a surprise for most Minnesotan's it is still not fun to see.  

Low-Lights On Why Are We The Worst: 

Sales Tax: 6.87% 

Income Tax: 5.35% to 9.85%

Social Security: Taxed at Federal Level

Property Tax Breaks for Seniors: People 65 or older with less than $60,000 in household income can defer part of their property taxes to the state. Interest will be charged and a lien will be attached to the property.

Tax on Inheritances and Estates: No inheritance tax, but estate taxes have an exclusion of $1 million. The maximum estate tax rate is 16%.

Sales Tax: None (Some Municipal Tax)

Income Tax: None

Social Security Tax: None

Property Tax Breaks for Seniors: Homeowners over 65 and surviving spouses over 60 don’t have to pay municipal taxes on the first $150,000 of value on their property.

Tax on Inheritances and Estates: None

Special Treatment for Other Retirement Income: Retirement income is not taxed.