Washington State has been ranked as the third-worst state for retirees in 2024, according to a Bankrate survey. The survey evaluated states based on cost of living, health care costs, weather, crime statistics, and overall well-being, with affordability weighing heavily at 40%. Washington’s adoption of a 7% capital gains tax on larger gains, combined with the highest estate tax rate in the nation, has made the state less attractive to wealthier retirees.
Additionally, the state’s business and occupation tax on gross receipts indirectly increases the cost of goods, further affecting affordability. Last year, Washington ranked fourth-worst, indicating a decline in its desirability as a retirement destination. Bankrate’s report highlights Delaware as the best state for retirees in 2024, while Washington voters will have the opportunity to repeal the capital gains tax in November through Initiative 2109.
