Best States to Retire In: A State-by-State Guide to Your Next Great Adventure

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Imagine working hard your whole life, building a nest egg carefully, then watching it drain faster than expected. Not because of a bad investment decision, but simply because of where you live.

A retiree in California may need more than $100,000 per year to live comfortably. But that same lifestyle in Oklahoma or South Dakota may cost about half that amount.

The amount of money you need to live can drastically change how retirement feels.

But the best states to retire in aren’t chosen for money alone. Healthcare quality, neighborhood safety, climate, culture, and proximity to family all figure into the level of happiness you achieve after retirement.

Daily quality of life is about more than “the number of sunny days and taxes.”⁸
—Stephen Kates, Bankrate

America offers an extraordinary range of options. Moving to a new state may not only help stabilize your finances; it may also mean exciting new landscapes, communities, and regional cultures that enrich your post-work life.

So, let’s find your state.

Why Choosing the Right State Matters

Finances often come first in retirement because they have to.

Only about 65% of Americans approaching retirement say their retirement savings are on track for retirement.¹ For the other 35%, every retirement dollar counts. Dollars lost to state income taxes, property taxes, housing, insurance, or everyday expenses can make or break the entire retirement experience.

Annual estimated retirement costs vary enormously by state (based on 2025 average). Here are some highlights:² 

• The least expensive state is West Virginia: about $48,000
• Connecticut: about $79,000
• New York: $85,000
• California : $101,000

Ultimately, retirement income can mean the difference between comfort and financial anxiety – or not being able to retire at all.

When savings run thin, the stress may land on children and grandchildren, too. Optimizing where you live isn’t just good for you. It also may be a gift to the people who love you.

Six Factors That Determine the Best States to Retire In

Choosing a retirement state is usually a six-layer decision.

1   Taxes. Nine states have no state income tax, which makes them appealing to retirees: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.⁶ In those states, Social Security, pension income, and IRA withdrawals face no state-level income tax.

2  Cost of living. Housing is often the biggest line item in a retirement budget. However, other routine costs such as groceries, utilities, transportation, insurance, and healthcare vary by location, too. Living where these costs are lower may help savings last longer.

3  Healthcare quality and access. Retirees need nearby hospitals, specialists, and strong Medicare plan networks. Minnesota ranked first in the nation for healthcare access and quality for seniors in 2026 — that’s a useful benchmark to compare other states.⁷ 

4   Safety. A safe neighborhood where you can walk freely and enjoy daily life is a genuine quality-of-life factor. Check crime statistics in any city and state you consider.

5   Climate. Some people want sunshine year-round. Others want four distinct seasons. This is important because climate affects mood, mobility and activity, health, and even insurance risk (e.g., if the area where you live is more likely to flood).

6   Quality of life. This includes a host of everyday-life details: walkability, arts and culture, recreation, air quality, the size of the local retiree community. As Bankrate financial analyst Stephen Kates noted, daily quality of life is about more than “the number of sunny days and taxes.”⁸

If you are married, the two of you will need to compare and compromise to ensure you are both happy with where you live.

Best States to Retire In: A Closer Look

Different studies use different methods, so rankings shift depending on which factors are weighted most. Still, a few states consistently rise to the top.

Wyoming — Best for Affordability and Health 

Wyoming leads or places in the top three across WalletHub, Empower, and Retirement Living rankings.⁶ The state has no personal income tax and the nation’s lowest rate of multiple chronic conditions among Medicare beneficiaries: just 44%.⁹ 

Best for: Retirees who prioritize low taxes, clean air, and wide-open space.

Trade-off: Cold winters and fewer big-city amenities.

New Hampshire — Best for Safety and Healthcare 

New Hampshire topped Bankrate’s comprehensive 2025 rankings. It ranked first for neighborhood safety, fifth for healthcare, sixth for taxes, and seventh for having a community of similarly aged residents.⁸ It also repealed its interest and dividends tax in 2025, making it more favorable for retirees living on investment income.

Best for: Retirees who prioritize safety, healthcare quality, and a strong retiree community.

Trade-off: It ranks 40th for weather—expect real winters.

South Dakota — Best for Value 

South Dakota has an estimated annual retirement cost of about $65,000.² And it has no state income tax, one of the most appealing reasons to move there. It is also ranked high for affordable housing, strong healthcare access, safe communities, natural beauty and an outdoor lifestyle with distinct seasons.³ 

Best for: Budget-conscious retirees who still want community and culture.

Trade-off: Cold winters and limited warm-weather options.

Georgia — Best for Warm-Climate Affordability 

Georgia offers affordability in a warm climate. Annual cost of living is just $63,000.² Social Security is fully exempt from state taxes, and retirees age 65 and older can exclude up to $65,000 per person — $130,000 per couple — of retirement income from state taxes.⁴ 

Best for: Retirees who want a mild winter climate, lower costs, and generous tax exemptions.

Trade-off: Summers are hot and humid.

Delaware — Best for Tax Efficiency 

Delaware has no sales tax, no inheritance tax, no estate tax, low property taxes, and exemptions on both Social Security benefits and pension income. Coastal towns such as Rehoboth Beach and Lewes offer seaside living. Major cities including Philadelphia, Baltimore, and Washington, D.C., are within driving distance.¹⁰

Best for: Retirees who want to keep more of their income from multiple income sources.

Trade-off: It is a small state with limited rural or mountain landscapes.

Florida — Best for Sunshine and Lifestyle 

Florida remains the most popular retirement destination in America. It is considered one of the most tax friendly states, beautiful beaches and outdoor activities year-round, and the most golf courses of any state.¹⁰ But retirees should go in with realistic expectations. Bankrate’s 2025 study ranked Florida 41st overall, citing rising healthcare costs, expensive home insurance, and natural disaster exposure.⁸ 

Best for: Retirees who value warm weather, water activities, and a large retirement community.

Trade-off: Rising insurance costs, hurricane and flood risk, and higher healthcare costs in some areas.

About Florida, Though: The Sun Belt Surprise

Warm weather alone is no longer enough to determine an ideal retirement location.

Traditional retirement hotspots such as Florida and Arizona have been slipping in some rankings because of rising costs and healthcare pressures. In Bankrate’s 2025 study, eight of the ten worst states for retirees are in the Sun Belt (Florida, New Mexico, California, Alabama, Arkansas, Oklahoma, Texas, Louisiana.⁸

That doesn’t mean those states are wrong for everyone. But retirees may need to look past the postcard image and ask harder questions about insurance, taxes, healthcare, and long-term affordability.

How to Choose the Best State for You

No ranking will perfectly match your life. The right state is the one that supports the retirement you’ve actually been building toward.

Start by ranking what matters most to YOU. Is it staying close to your children? Lower taxes? Warm weather? Access to a top-rated hospital? There is no wrong answer, but you need to know your answer before comparing states.

Then know your annual numbers. Compare expected annual income — Social Security, pension income, investment withdrawals, or other sources — against the annual cost of living in each target state.

Run the full tax calculation. A state with no income tax may still have high property taxes, insurance costs, or sales taxes. New Jersey and Illinois, for example, have the highest property tax rates in the country.⁵ Look at the full picture, not just one headline number.

Finally, think about how your savings are positioned. Persistent inflation can erode the purchasing power of dollars in a fixed income. Many retirees consider adding a layer of stability with assets that have long been viewed as reliable stores of value.

One example is a gold IRA, which holds physical precious metals inside a tax-advantaged account. Gold has historically maintained or increased real value during inflationary cycles and often acts conversely to traditional paper-based assets to offset losses. Talk to a financial advisor to see if a gold IRA makes sense for you.

Before you move to another state, do a test drive. Rent for three to six months. Nothing reveals a place’s advantages and trade-offs faster than living there.

Begin Your Search Today

Retirement is the beginning of your next chapter, and where you live can deeply affect the level of happiness you find.

The best state to retire in is the one that fits your own finances, supports your health, helps you feel safe, and aligns with the life you want. For some people, that means sunshine and water. For others, it means lower taxes, stronger healthcare, or being close enough to see the grandkids without booking a flight.

The goal is not to find the state everyone else says is best. The goal is to find the place where your money, health, family, and sense of home can work together.

That is one of retirement’s great gifts: the chance to choose your next chapter on your own terms.

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