What is the best city in the US to retire in 2026?

There is no single best city — the right choice depends on your budget, health needs, climate preference, and proximity to family. However, consistently top-ranked cities for retirees include Asheville, NC (mountains, arts, mild climate); Sarasota, FL (beaches, no state income tax, strong healthcare); Chattanooga, TN (low cost, no income tax on retirement income); Scottsdale, AZ (warm climate, healthcare access); and Boise, ID (outdoor recreation, relatively affordable compared to the Pacific Northwest).

Which cities have the lowest cost of living for retirees?

Cities with the lowest cost of living suitable for retirees include: Knoxville, TN; Greenville, SC; Tupelo, MS; Albuquerque, NM; Wichita, KS; Huntsville, AL; and Fayetteville, AR. These cities offer median home prices under $250,000, low property taxes, and states that exempt most retirement income from state taxes. Retirees can live comfortably on $35,000–$50,000/year in many of these cities.

What should I look for when choosing a city to retire?

Key factors include: (1) Cost of living — housing, groceries, utilities; (2) State income tax treatment of retirement income — some states exempt Social Security, pensions, and IRA withdrawals; (3) Healthcare access — proximity to major hospitals and specialists; (4) Climate — consider temperature, humidity, and natural disaster risk; (5) Social and cultural life — arts, restaurants, recreation; (6) Walkability or transportation options if you stop driving; (7) Proximity to family and airports.

Which cities are best for retirees who want no state income tax?

States with no state income tax include Florida, Texas, Nevada, Washington, Wyoming, South Dakota, and Alaska. Among these, popular retirement cities are: Sarasota and Tampa, FL; Austin and San Antonio, TX; Henderson and Reno, NV; and Spokane, WA. Tennessee and New Hampshire have no broad income taxes but do tax some investment income. Many other states exempt Social Security and/or pension income even with a general income tax.

Best Cities to Retire in the US in 2026

The best city to retire is the one that fits your budget, lifestyle, health needs, and proximity to the people you care about. These cities consistently rank among the best because they balance affordability, healthcare, climate, and quality of life.

How We Evaluate Retirement Cities

Factor	Why It Matters
Cost of living	Monthly expenses determine how far your savings stretch
State tax treatment	Social Security and IRA tax exemptions save thousands annually
Healthcare quality	Access to major hospital systems and specialists
Climate	Comfort and health impacts of extreme heat, cold, or humidity
Recreation and culture	Quality of life determines long-term satisfaction

Best Mid-Size Cities to Retire in 2026

Asheville, NC

Median home price: ~$380,000
State tax on retirement income: North Carolina fully exempts Social Security from state income tax; a flat 4.5% rate applies to pension, IRA, and 401(k) withdrawals (government pensions vested before 8/12/1989 are also fully exempt)
Why retirees love it: Stunning Blue Ridge mountain setting, vibrant arts and music scene, moderate climate, growing healthcare system (Mission Hospital / HCA)
Best for: Active retirees who value outdoors, arts, and a walkable downtown

Sarasota, FL

Median home price: ~$430,000
State tax on retirement income: Florida has no state income tax
Why retirees love it: Gulf Coast beaches, strong arts scene, excellent healthcare (Sarasota Memorial Hospital), no state income tax
Best for: Retirees seeking warm weather, beaches, and full state income tax exemption

Chattanooga, TN

Median home price: ~$295,000
State tax on retirement income: Tennessee has no broad income tax (no tax on wages or retirement income)
Why retirees love it: Tennessee River waterfront, outdoor recreation, low cost of living, no state income tax, proximity to Asheville and Atlanta
Best for: Value-conscious retirees who want outdoor access without paying coastal prices

Scottsdale, AZ

Median home price: ~$690,000
State tax on retirement income: Arizona fully exempts Social Security; a flat 2.5% rate applies to pension, IRA, and 401(k) income
Why retirees love it: 300+ days of sunshine, world-class healthcare (Mayo Clinic), golf, arts, strong snowbird infrastructure
Best for: Active, higher-income retirees seeking warm weather and premium amenities

Knoxville, TN

Median home price: ~$270,000
State tax on retirement income: No state income tax
Why retirees love it: Low property taxes, proximity to Great Smoky Mountains, University of Tennessee cultural amenities, affordable healthcare
Best for: Budget-focused retirees who want outdoor access and low taxes

Greenville, SC

Median home price: ~$310,000
State tax on retirement income: South Carolina fully exempts Social Security; residents 65+ can deduct $15,000 per person ($30,000 per couple) of other retirement income; the top income tax rate is 6.0% as of 2026 (reduced from 7% in 2022)
Why retirees love it: Mild four-season climate, revitalized downtown, growing healthcare presence, proximity to mountains and coast
Best for: Retirees seeking a mid-South climate, small city feel, and relative affordability

Fastest-Growing Retirement Cities to Watch

City	State Income Tax Note	Median Home Price	Key Draw
Boise, ID	Idaho exempts Social Security; taxes other income at a flat rate	~$440,000	Outdoor recreation, clean air
Huntsville, AL	Alabama exempts Social Security and most pensions; taxes IRA/401(k) withdrawals	~$280,000	Low cost, growing healthcare
Bentonville, AR	Arkansas exempts Social Security; taxes other retirement income at graduated rates	~$320,000	Outdoor trails, arts (Crystal Bridges)
Las Vegas, NV	No state income tax	~$390,000	Entertainment, affordability vs. California

Home price figures are approximate market estimates and change regularly — confirm current values with a local listing service.

How State Taxes Affect Your Retirement Budget

Example: $75,000 annual retirement income (Social Security + IRA withdrawals) in several states:

State	SS Taxed?	IRA Taxed?	Estimated State Income Tax
Florida	No (no income tax)	No	$0
Tennessee	No (no income tax)	No	$0
Arizona	No	Yes (2.5% flat)	~$1,000–$1,500
North Carolina	No — fully exempt	Yes (4.5% flat)	~$1,600–$2,000

North Carolina’s Social Security exemption is full, not partial — only non-Social Security retirement income (e.g., IRA and 401(k) withdrawals) is subject to the state’s flat 4.5% rate. Estimates assume a typical split between Social Security and IRA income and will vary with your actual income mix.

Tax treatment of retirement income can mean a $1,000–$3,500+ annual difference between states — a meaningful sum over a multi-decade retirement.

For a broader comparison, see best states to retire in 2026 and cheapest places to retire. Return to the Best Places to Retire hub.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy