![\"Jersey-City-New-Jersey\"](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/10\/4-Jersey-City-New-Jersey-31352077252_7018987089_o.jpg\")
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\n Patrick Copley \/ Flickr.com <\/p>\n
Commitment to Our Readers<\/p>\n
GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years Trusted by When planning for\u00a0retirement<\/a>, you typically budget for expected expenses such as housing, utilities, fuel, food, and\u00a0entertainment. However, many retirees don\u2019t realize how much they\u2019ll pay in unexpected costs, like taxes.\u00a0<\/p>\n Property, sales, and state taxes, among others, can quietly erode your savings. This doesn\u2019t even include the extra money <\/a>you\u2019ll pay in fees to maintain your property, which can creep into the thousands each year.\u00a0<\/p>\n And before you know it, you\u2019re running out of money and looking for a part-time job you really don\u2019t want.\u00a0<\/p>\n<\/p>\n To help you avoid that eventuality, we\u2019ve researched the five states where retirees are paying the highest hidden taxes without even realizing it.\u00a0<\/a><\/p>\n What Are Those \u2018Hidden\u2019 Taxes for Retirees?\u00a0<\/p>\n Before we get into which states have the most hidden taxes, let\u2019s determine what we mean by \u201chidden.\u201d\u00a0<\/p>\n Hidden taxes and fees are the ones you don\u2019t expect. They include:\u00a0<\/p>\n Maintenance, repair, and upkeep of parts of your property and home. This could be fixing your roof, dealing with plumbing, or updating your landscaping.\u00a0 Why This Matters<\/p>\n As a retiree, you\u2019re counting on a fixed income<\/a> with a budget for obvious line items. But when any of your bills spike or your maintenance costs accelerate, your discretionary spending suddenly goes out the window. Now, you\u2019re forced to cut back on your self-care or travel. It may even affect your housing stability.\u00a0<\/p>\n 5 States Where Retirees Are Secretly Paying Hidden Taxes and Fees Hawaii has the highest annual hidden homeownership cost in the U.S. This comes to about $34,573 per year for maintenance, utilities, insurance, property taxes, internet and cable.\u00a0<\/p>\n Because many retirees in Hawaii<\/a> live in remote or island areas, utility costs, shipping or transport of materials, and insurance are also often higher. This is usually because of weather risk.\u00a0<\/p>\n<\/p>\n California<\/p>\n California homeowners face about $32,262 per year in hidden homeownership costs (maintenance, taxes, utilities, etc.)<\/p>\n To put this into perspective, this is almost 300% more than the average cost of a comfortable retirement <\/a>in countries like Colombia or Greece, where you can retire for $1,000-$1,200 a month.<\/p>\n New Jersey<\/p>\n New Jersey also ranks among the top five states. This state sees hidden housing\u2010related costs of roughly $29,751 per year. Much of this is driven by high property taxes (around $10,485 a year), plus energy and utility costs.<\/p>\n These exorbitant prices are usually overlooked by retirees because they want to stay on the East Coast near family.<\/p>\n Massachusetts<\/p>\n Massachusetts is among the top five, with around $29,277 a year in hidden homeownership costs. Property taxes, utilities, and maintenance are major factors.\u00a0<\/p>\n It\u2019s a balance issue in this state because retirees love the state for its amazing healthcare, but expensive housing<\/a> is a burden for many.\u00a0<\/p>\n Washington<\/p>\n Washington is one of the top five states in hidden homeownership costs,<\/a> with about $27,444 per year. Maintenance is particularly high in Washington.\u00a0<\/p>\n Axios coverage may focus more on California, but Washington is consistently included in the Business Insider study as a state with heavy hidden cost burdens. The addition of high-income taxes only adds to these high hidden taxes and fees.\u00a0<\/p>\n Planning Tips To Avoid or Mediate Those Costs<\/p>\n If you\u2019re currently in retirement or planning to retire soon, here are some tips to mitigate your potential rising costs:\u00a0<\/p>\n<\/p>\n Estimate Your Total Home Costs Carefully<\/p>\n Use this data to see what homeowners in your prospective or current state actually pay in hidden costs.<\/p>\n Then, apply the \u201cmaintenance = ~2% of home value per year\u201d rule for expected upkeep. That way, you\u2019ll know what to expect and whether you\u2019re willing to pay.\u00a0<\/p>\n Don\u2019t Forget Inflation, Aging Infrastructure, and Climate Risk<\/p>\n It\u2019s important to realize that older homes often need repairs more frequently. Severe weather risk, like fires and floods, can raise your insurance premiums and your maintenance and repair costs.<\/p>\n Also, recognize that your rates tend to creep upward. These include your water, energy, and waste bills.\u00a0<\/p>\n Consider Relocating or Downsizing<\/p>\n If you do come to see that your living costs are too high, move to a different state or country, even, where costs can be lower.\u00a0<\/p>\n You can even simply move into a smaller home or one with lower maintenance demands. These shifts can result in large savings.<\/p>\n Take Advantage of Exemptions, Reliefs, and Credits<\/p>\n There are many great programs available to help keep costs affordable for seniors<\/a>. These include:\u00a0<\/p>\n State and local property tax relief for seniors or disabled persons.![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
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Millions of Readers<\/p>\n
\nUtilities hikes, like power bill increases.\u00a0
\nProperty taxes and home insurance. These are major recurring costs that can vary widely depending on your state or county.\u00a0
\nSales or excise taxes. You may pay general sales taxes, special levies on gas or utilities. And these can creep up on you fast.\u00a0
\nHomeowners Association (HOA) or other community maintenance or regulatory fees can become as high as a mortgage in some areas.\u00a0<\/p>\n
\nHawaii<\/p>\n
\nUtility or energy assistance programs.<\/p>\n