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Retiring? Why You Might Want To Move From Maryland

Retirement planners say Maryland taxes – including the estate tax and pension tax – make leaving more attractive for some retirees.

Maryland residents love to complain about high taxes, and a new ranking of best states to retire to hammers the Free State for its hefty tax bill. File|Patch
Maryland residents love to complain about high taxes, and a new ranking of best states to retire to hammers the Free State for its hefty tax bill. File|Patch

Maryland residents love to complain about high taxes, and a new ranking of best states to retire to hammers the Free State for its hefty tax bill. 

Maryland is listed among the worst states to retire by BankRate.com, while South Dakota was ranked as the best place to stretch retirement dollars.

Mary Bare, who is recently retired, and her husband are selling their Westminster area home — heading to North Carolina to retire rather than staying in the state where they raised their six children.

“It’s a lot cheaper down there. We can sell our house here and get a 10-acre farm or 15-acre for what we’d sell a quarter acre for,” Bare tells WJZ TV.

The Bankrate.com study ranks Maryland the ninth worst state to retire. It’s blamed in part on the high cost of living here – the 11th highest of any state in the country.

Also to blame is Maryland’s higher tax burden–the seventh highest in the country–where state and local taxes combined can eat up as much as 10.6 percent of a person’s income.

Retirement planners like Diane Morley, The New Wealth LLC, say for some clients, Maryland taxes – including the estate tax and pension tax – make leaving more attractive.

“Up and down the East Coast, other states do not have the retirement pensions tax, so that makes a big difference,” Morley told the TV station.

The No. 1 worst state to retire in is New York with its high taxes.

Michael May 14, 2014 at 04:25 PM
I was born and raised in North Carolina and planned to retire there. For various reasons, that didn't work out and five years into retirement I'm still in Maryland. Meanwhile, my closest friends have retired and moved to the beaches of North Carolina, South Carolina and Florida, the mountain lakes of Arkansas, and the high desert country of Arizona. I'm stuck doing the tax march to O'Malley's piper.
You May 15, 2014 at 07:32 AM
My parents retired a few years back here in Maryland and were drilled by even higher taxes via O'Malley and his "handout to those who don't" clowns. They sold there house and moved to Coastal Carolina where they got bonus retirement tax CUTS because of being a retired police officer. They bought a huge house on 1 acre of land for 30% less than their smaller house and 1/4 acre in Baltimore County. The cost of living is way cheaper, taxes are way lower, and people are much more kinder and responsible in NC.
Bill Hahn May 15, 2014 at 09:03 AM
South Dakota? Must be some sort of a joke. Taxes are much less important to me than being close to my family and friends. Of course, if I didn't care about my family and had no friends, then I could move anywhere. But South Dakota as the "best" place to retire? Shows the limitations of the report's criteria.
Piotr Gajewski May 15, 2014 at 01:06 PM
Note: the estate tax is being fazed out in Maryland.
Veronica Pond May 15, 2014 at 01:38 PM
If I hadn't bought a house in Westminster (the single worst place to retire and/or live in) that is worth less than what I owe on it, I would be out of Maryland in a New York minute! I do not want to live in a state that falsely accuses you of a crime you did not commit (I got someone else red light camera ticket), and a city where the brute force police break the glass in your screen door, and kick in the front door of your house (doing $1,658.50 worth of damage), all because you would not open your door to them. No warrant! To this day, I do not know why I was traumatized and now have PTSD because of it. If only I wasn't stuck!

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