Never Retire In These 15 US States If You Want To Keep Your Money

The best states to retire in the US are often talked about, but have you ever wondered which states are the worst for retirement? Based on taxes, living expenses, and median home value, these 15 states should be avoided if you want to make the most of your retirement money.

1. South California

Cons: living expenses ranked third in the country; highest state income tax and sales tax at 7.5%; a high median home value of $368,600 (over double the national median); steep rental fees

Pros: warm sunshine and beautiful beach

2. Michigan

Cons: property taxes ranked seventh highest in the country; taxable retirement income and pension

Pros: no inheritance or estate tax; a below-average living cost

3. New York

Cons: highest living cost and income taxes in the US; fourth-highest property taxes; expensive housing and health care; heavy traffic; cold winter

Pros: a relatively safe state; three of the top ten hospitals in the US for geriatrics

4. Hawaii

Cons: extremely high living cost; median home rent at $2,975 per month (triple the national average); income tax at 11%, the second-highest in the country

Pros: beautiful ocean and beach; warm tropical climate

5. Washington, D.C.

Cons: second-highest cost of living in the US; second-highest median home value at $424,400; high-income tax at 8.9%; sales tax at 5.75%; estate tax at more than 16%; high violent crime rate (3.5 times of the national rate); higher property crime rate than the national average.

Pros: the country's seat of power

6. New Jersey

Cons: the average rent is $1,527 per month that is 67% higher than the national average; the median home value is double the national average; the real estate tax is sky-high; healthcare costs 8% higher than average; some retirement income tax can reach a whopping 8.97%; thunderstorm; blizzards

Pros: New Jersey is a relatively safe place.

7. North Carolina

Cons: above average cost of living; 17.5% of North Carolina live below the poverty line; average income is $64,490 (14% less than the national average); income of older residents is 18.3% below average; a flat income tax of 5.75%;

Pros: mild winters;  Silicon Valley

8. Minnesota

Cons: least tax-friendly for retirees; taxable retirement income(social security benefits, private pensions, etc); the average income for individuals 65 and older is 13.7% below the U.S. average; high cost of living; above-average median home value and health care cost; cold winters and hot summers(blizzards, hail, tornadoes)

Pros: a land of 10,000 lakes; 72 state parks and recreation areas

9. Illinois

Cons: high state and local taxes(above a combined 10% in some areas ); high cost of health care(a healthy couple will need $416,500 throughout retirement, $21,500 more than the national average)

Pros: retirement income sources are exempt from taxes(401K plan and individual retirement accounts included)

10. Oregon

Cons: high cost of living and high tax rate; rental fee at $2,196 per month (more than double of the national average); gasoline costs 11.7% more than the national average; consultation fee for doctors is 27.7% higher than average; income tax at 9.9% for those who earn more than $125,000 annually (retirement income included); active volcanoes

Pros: beach, places to hike, delicious craft beer

11. Wisconsin

Cons: the fourth-highest property taxes in the US; taxable retirement income; a relatively high marginal income tax rate of 7.75% in the highest bracket (over $225,000).

Pros: no tax on Social Security benefits; no estate state tax.

12. Nebraska

Cons: the sixth-highest property taxes; taxable Social Security and pension income; high marginal tax rate of 6.84%, which starts at a very low $29,000; an inheritance tax.

Pros: the second-lowest cost of living in the US.

13. Vermont

Cons: high property taxes; taxable Social Security and pension income; high marginal tax rate of 8.95% (on incomes over $405,100); high cost of living (NO. 41).

Pros: a beautiful state with nice people; outstanding recreation with mountains and forests.

14. Ohio

Cons: some pension and retirement income is taxed; high marginal tax rate of 5.95%.

Pros: no estate state tax; no tax on Social Security benefits; a below-average cost of living (NO.15).

15. Connecticut

Cons: the tenth-highest property taxes (houses are expensive here which means people pay a lot of tax); the fourth-highest gas tax; the fourth-highest estate taxes (16% on anything over a $2 million estate); top marginal tax rate of 6.7%; taxable Social Security and retirement income; high cost of living (48th of 51).

Pros: the highest personal exemptions in the US ($24,000 for a couple); some Social Security benefit exemptions.