These are the worst places to live based on living costs, taxes and other factors important to retirees. By Andrea Browne Taylor, Online Editor December 9, 2016 Nearing retirement? Think twice about where you plan to live. Some states are more welcoming than others.See Also: 10 Worst States for Taxes on Retirees We ranked all 50 states on cost of living, taxes, health care and other factors important to retirees. Here are the three states that fared the worst. Finishing dead last is New York. Living expenses in the Empire State are 29% above the national average. More worrisome: The percentage of residents 65 and up living in poverty is above average, too. The runner-up is New Jersey. The Garden State’s tax policies can be tough on retirees. There’s a 7% state sales tax and steep local property taxes. The combined state and local tax burden is the second highest in the nation. Advertisement Rounding out the three worst states for retirement is California. Housing is expensive, and taxes can take a big chunk out of your nest egg. Most retirement income is subject to tax, and California imposes the highest income tax rates in the nation. See 12 more of the worst states for retirement.