Rhode Island
Top State Income Tax Rate: 5.99 percent
Sales tax: 7 percent
Property tax per capita: $2,083
The Ocean State lands close to the bottom of the list because it ranks poorly on corporate taxes and property taxes. Rhode Island was named least tax-friendly state in the country for retirees by Kiplinger Magazine, thanks to its practice of taxing Social Security benefits, pension income, and almost all other sources of retirement income.
