SACRAMENTO - If you are anywhere near retirement, you probably have given some though as to which state you would like to spend your golden years.
As beautiful and popular as California may be for people wanting to live here, it's not getting such high marks for those who want to retire here. Kiplinger.com posted a list assembled by financial advisors ranking the most and least tax-friendly states for retirees.
California was listed as the least tax-friendly state of all with a State income tax anywhere from one percent to 13.3 percent, and a state sales tax of 7.5 percent. It described our state as levying one of the nation's highest personal income tax rates. The article said "(California's) tax exemption for Social Security benefits is little comfort, given that most other retirement income gets taxed in full."
Connecticut is right behind California with a state income tax between three and 6.7 percent, a state sales tax of 6.3 percent, and an estate tax anywhere from 7.2 to 12 percent. In that state, they also tax pension benefits and is one of only 14 states to tax social security income.
The most friendly state is Alabama. State income tax is two to five percent. State sales tax is at four percent. Senior homeowners pay nothing in property taxes and retirement income from Social Security and pensions is also exempt.
Right behind Alabama is Alaska. No state income tax and no state sales tax but many municipalities impose a local sales tax of two to five percent.
Also in Alaska, residents are handed money by the government to live there. The state issues an annual dividend check to each resident based on oil revenues. The amount can be anywhere from $875 to more than $2,000.
Delaware was also listed as good for retirees. There is no sales, no inheritance, and no estate taxes. And up to $12,500 of retirement income is exempt for those 60 and older.
View the 10 most tax-friendly states for retirees
View the 10 least tax-friendly states for retirees