Illinois is a bad choice for retirement due to its lack of affordability. It ranks 40th out of the 50 states. Not only that, but a WalletHub study showed that Illinois is the worst state to be a taxpayer.
The average household pays almost 40% more in state and local taxes than the national average. Property tax on an average home is close to $5,000. Sales tax and gas tax are high as well. Additionally, estates worth over $4 million are subject to tax.
What’s more, is that tolls on the eastern half of the state can get quite expensive. Thankfully, getting an I-PASS can make traveling on the Illinois Tollway less costly.
1. New Mexico
Coming in at #1 on the list is New Mexico. There are several reasons why you shouldn’t consider moving to New Mexico during your retirement years:
- You will have to pay taxes on your Social Security benefits, retirement account distributions and pension payouts.
- Sales taxes are above average.
- You’ll find it difficult to access quality health care.
- Nursing homes and memory care services are costly.
- There’s a lot of property crime.
- The poverty rate tops 18%.
- The quality of education consistently ranks low.
- The altitude and dry air can be tough for people with breathing difficulties.