What is the best state to retire in?

The best state depends on your priorities. For low taxes, consider Florida, Nevada, or Wyoming (no state income tax). For affordable living, consider Alabama, Mississippi, or Arkansas. For healthcare, consider Minnesota, Massachusetts, or Hawaii. For overall balance, Florida, North Carolina, and Arizona consistently rank highest.

Where is the cheapest place to retire in the US?

The cheapest states for retirement are Mississippi (cost of living 15% below national average), Arkansas, Alabama, Oklahoma, and West Virginia. Within these states, smaller cities and rural areas are the most affordable, with median home prices under $150,000.

What is a good retirement income?

Most retirees need 70-80% of their pre-retirement income to maintain their lifestyle. The median retirement income in the US is about $55,000 for households 65+. In low-cost areas, $40,000-$50,000 can be comfortable. In high-cost metros, $80,000-$100,000+ may be needed.

Best Places to Retire in 2026: Top States and Cities Ranked

Where you retire can affect your finances as much as how much you’ve saved. Choosing a state with lower taxes, affordable housing, and good healthcare can make your retirement savings last years longer.

Best States for Retirement (Overall)

Rank	State	Tax Friendliness	Cost of Living Index	Healthcare Ranking	Climate Score
1	Florida	No income tax	98 (near average)	Average	Warm/hot
2	North Carolina	Flat 4.5% income tax	93	Above average	Moderate
3	Arizona	2.5% flat tax	97	Average	Hot/dry
4	Virginia	2-5.75% income tax	98	Above average	Moderate
5	Tennessee	No income tax	90	Below average	Moderate
6	South Carolina	0-6.4% income tax	90	Below average	Warm
7	Colorado	4.4% flat tax	102	Above average	Dry/moderate
8	Delaware	0-6.6% income tax	102	Above average	Moderate
9	Georgia	1-5.49% income tax	91	Average	Warm
10	Nevada	No income tax	98	Below average	Hot/dry

Tax-Friendliest States for Retirement

States With No Income Tax

State	Sales Tax	Property Tax Rate	Social Security Taxed?	Cost of Living
Florida	6%	0.86%	No	98
Nevada	6.85%	0.55%	No	98
Texas	6.25%	1.68%	No	92
Tennessee	7%	0.64%	No	90
Wyoming	4%	0.56%	No	97
Washington	6.5%	0.87%	No	110
Alaska	0%	1.17%	No	125
South Dakota	4.5%	1.14%	No	93
New Hampshire	0%	1.86%	No	108

States That Don’t Tax Retirement Income

State	Income Tax	Exempts SS?	Exempts 401(k)/IRA?	Exempts Pensions?
Illinois	4.95%	Yes	Yes	Yes
Mississippi	0-5%	Yes	Yes	Yes
Pennsylvania	3.07%	Yes	Yes	Yes
Alabama	2-5%	Yes	Partially	Yes (state pensions)
Iowa	4.4-5.7%	Yes	Partially	Partially

Cost of Living Comparison

Monthly Retirement Budget by Location Type

Expense	Low-Cost Area	Average Area	High-Cost Area	Premium Area
Housing	$800	$1,500	$2,500	$4,000+
Healthcare (Medicare + supplemental)	$350	$400	$450	$500
Food/groceries	$400	$500	$650	$800
Transportation	$250	$350	$400	$500
Utilities	$150	$200	$275	$350
Entertainment/dining	$150	$250	$400	$600
Insurance (home, auto)	$200	$250	$350	$450
Miscellaneous	$200	$300	$400	$500
Monthly total	$2,500	$3,750	$5,425	$7,700
Annual total	$30,000	$45,000	$65,100	$92,400

Location Type	Monthly Spend	Social Security ($2,000/mo)	Draw From Savings	Years Savings Last*
Low-cost area	$2,500	$2,000	$500/month	40+ years
Average area	$3,750	$2,000	$1,750/month	18 years
High-cost area	$5,425	$2,000	$3,425/month	10 years
Premium area	$7,700	$2,000	$5,700/month	6 years

*Simplified, assuming 4% withdrawal rate with some growth.

Best Cities for Retirement

Affordable Cities (Under $250,000 Median Home Price)

City	State	Median Home Price	Cost of Living Index	Healthcare Rating	Climate
Asheville, NC	NC	$230,000	90	Good	4 seasons, mild winters
San Antonio, TX	TX	$220,000	87	Good	Hot, no income tax
Pittsburgh, PA	PA	$195,000	89	Excellent (UPMC)	4 seasons
Huntsville, AL	AL	$245,000	85	Good	Mild winters
Greenville, SC	SC	$235,000	88	Good	Mild climate
Tucson, AZ	AZ	$225,000	92	Good	Hot/dry, sunny
Knoxville, TN	TN	$210,000	84	Good	No income tax, mild
Fort Wayne, IN	IN	$165,000	82	Good	4 seasons

Mid-Range Cities ($250,000-$400,000 Median Home)

City	State	Median Home Price	Cost of Living Index	Highlights
Raleigh, NC	NC	$370,000	95	Research Triangle healthcare
Tampa, FL	FL	$340,000	96	No income tax, warm
Nashville, TN	TN	$385,000	96	No income tax, culture
Scottsdale, AZ	AZ	$390,000	107	Golf, outdoors
Charleston, SC	SC	$370,000	102	Mild climate, culture
Sarasota, FL	FL	$395,000	100	Beach, no income tax

Healthcare Considerations

Factor	What to Evaluate
Medicare Advantage plan availability	More options = more competition = better coverage
Hospital proximity	Within 30 minutes of a major hospital
Specialist access	Availability of oncologists, cardiologists, orthopedists
Medicare supplemental costs	Medigap premiums vary significantly by state

Best States for Healthcare

State	Medicare Advantage Plan Availability	Top Hospital Systems	Medigap Affordability
Minnesota	High	Mayo Clinic	Moderate
Massachusetts	High	Mass General, Dana-Farber	Higher
Pennsylvania	High	UPMC, Penn Medicine	Moderate
North Carolina	High	Duke, UNC	Affordable
Florida	Very high	Many options	Moderate

Climate and Quality of Life

Retirement Climate Preferences

Climate Type	Best States	Pros	Cons
Warm year-round	FL, AZ, TX, HI	Outdoor activities year-round	Heat extremes, hurricanes (FL)
Mild 4 seasons	NC, VA, TN, SC	Moderate weather, fall colors	Some cold in winter
Dry/sunny	AZ, NV, CO, NM	Low humidity, sunshine	Extreme heat, water scarcity
Coastal	FL, SC, NC, OR	Beach lifestyle, views	Higher costs, hurricanes
Mountain	CO, NC (western), TN	Scenic, outdoor recreation	Isolated, winter driving

Retirement Relocation Checklist

Category	Questions to Answer
Taxes	State income tax? Social Security taxed? Property tax rate?
Housing	Can I afford median home? Rent or buy?
Healthcare	Near good hospital? Medicare Advantage options?
Climate	Can I handle summer heat or winter cold?
Social	Friends or family nearby? Active community?
Safety	Crime rate? Natural disaster risk?
Activities	Hobbies, volunteer opportunities, outdoor recreation?
Airport access	How far to a major airport?
Trial run	Can I rent for 3-6 months before committing?