📚 INDEX
- Why Retirement Location Matters More Than Ever 📍
- Key Factors When Choosing a State to Retire 🧾
- Top States With No Income Tax for Retirees 💰
- States With Low Cost of Living and Great Amenities 🏠
- Best States for Healthcare Access and Quality ❤️
- Retirement-Friendly Weather and Outdoor Living ☀️
- State-by-State Breakdown: Top Picks for 2025 ✅
What Are the Best States to Retire in the US (and Why?)
Where you choose to retire can impact not only your lifestyle, but also your tax burden, healthcare access, safety, and financial well-being. Retirement is more than just an age—it’s a decision about where and how you want to live the rest of your life. Choosing the best state to retire in the US isn’t just about sunshine or beach views. It’s about balancing quality of life with long-term financial peace of mind.
In this guide, we break down the top states to retire in, and explain exactly why they stand out in 2025.
📍 Why Retirement Location Matters More Than Ever
With inflation, rising healthcare costs, and uncertain tax policies, the state you retire in has become a major financial factor. Unlike when you’re working, your income in retirement is often fixed. Where you live can affect:
- How much of your income goes to taxes
- How far your Social Security benefits go
- The availability and cost of healthcare
- Access to nature, community, and lifestyle activities
- Housing affordability and property taxes
In short: where you retire affects how well you retire.
Many retirees are now moving states to find better conditions. This trend is especially strong among Baby Boomers and Gen Xers seeking low taxes and warmer climates. But taxes alone aren’t enough. Weather, cost of living, and healthcare quality also play a big role.
🧾 Key Factors When Choosing a State to Retire
Everyone’s ideal retirement looks different—but there are several universal factors that influence which states rise to the top for retirees.
1. State Income Tax
Does the state tax Social Security? How about pensions or retirement account withdrawals? Some states are tax-free for retirees, while others hit hard.
2. Cost of Living
A lower cost of housing, groceries, and utilities can stretch your retirement dollars much further.
3. Healthcare Access
Are there good hospitals nearby? How affordable is Medicare supplemental insurance in that state?
4. Climate and Environment
Do you prefer warm, sunny days or four distinct seasons? Is outdoor recreation important to you?
5. Safety and Crime Rates
Living in a secure and peaceful community adds to emotional well-being during retirement.
6. Senior Programs and Lifestyle
Some states offer better access to senior centers, public transportation, and age-friendly communities.
Here’s a quick snapshot of what retirees often prioritize:
| Factor | Why It Matters |
|---|---|
| Taxes | Impacts take-home income and savings drawdown |
| Healthcare | Frequent visits and affordable coverage are key |
| Cost of Living | Helps make savings last longer |
| Weather | Improves day-to-day enjoyment and physical health |
| Community Support | Prevents isolation and boosts happiness |
💰 Top States With No Income Tax for Retirees
One of the most appealing financial features for retirees is a state with no income tax. This means you won’t pay state tax on your Social Security, pension, or 401(k)/IRA withdrawals.
Here are the nine states with no personal income tax as of 2025:
- Florida
- Texas
- Nevada
- South Dakota
- Washington
- Tennessee
- Wyoming
- Alaska
- New Hampshire (only taxes interest/dividends)
Let’s explore three of the most retirement-friendly from this list:
Florida 🏖️
- No income tax, including retirement income
- Warm, sunny climate year-round
- Abundant healthcare facilities and retirement communities
- Popular among retirees for decades
Tennessee 🎶
- No income tax and low cost of living
- Mild climate with scenic mountain views
- Vibrant culture and southern hospitality
- Cities like Chattanooga and Knoxville rank high for retirees
South Dakota 🦬
- No income tax and low property taxes
- High-quality, affordable healthcare system
- Small-town feel with access to natural beauty
- Among the highest-rated states for fiscal stability
While zero income tax is attractive, it’s important to check sales and property taxes, which can offset those savings in some states.
🏠 States With Low Cost of Living and Great Amenities
A state can be great for retirement even if it has some income taxes—if the overall cost of living is low and the lifestyle is rich.
Arkansas, Mississippi, and Alabama consistently rank among the most affordable states in the country, with:
- Median home prices far below the national average
- Low utility costs and inexpensive groceries
- High friendliness and community involvement
- Moderate to warm climates
Missouri is another surprising gem. It offers:
- Low housing costs
- Some exemptions on Social Security income
- A strong healthcare network in cities like St. Louis and Kansas City
- Access to lakes, forests, and national parks
New Mexico is an increasingly popular retirement spot thanks to:
- Affordable real estate and cost of living
- Stunning desert landscapes
- A blend of Native American, Hispanic, and Western cultures
- Mild winters and 300+ sunny days a year
🧠 Pro Tip:
Look beyond state taxes alone. A state with some income tax but low housing and living costs might save you more overall than a tax-free but expensive state.
❤️ Best States for Healthcare Access and Quality
As we age, access to affordable, high-quality healthcare becomes one of the top priorities in retirement. The best states to retire aren’t just tax-friendly—they also offer excellent hospitals, Medicare support, and elder-focused medical services.
Here are a few of the top-ranked states for healthcare based on Medicare performance, hospital quality, and availability of providers:
Minnesota 🏥
- Consistently ranks #1 for healthcare outcomes and access
- Offers a strong mix of urban hospitals and rural clinics
- Robust Medicare Advantage plans with high satisfaction rates
- Also known for clean air, low crime, and community life
Massachusetts 🩺
- Home to some of the best hospitals in the world (e.g., Mass General, Brigham and Women’s)
- Nearly universal health insurance coverage
- Excellent elder services and walkable cities like Boston and Cambridge
- High cost of living, but exceptional care and access
Vermont 🌳
- High healthcare quality and senior safety
- Strong social services, including transportation for seniors
- Beautiful natural scenery and peaceful living
- Great choice for retirees who value wellness and outdoor peace
Connecticut 🏡
- Low crime and great healthcare access
- Many retirement communities are located close to quality hospitals
- Offers some tax exemptions for retirement income (especially military and pensions)
- Coastal towns offer scenic retirement options for nature lovers
📌 Healthcare Tip for Retirees:
Even in high-tax states, excellent healthcare and strong Medicare options can justify the cost—especially for those with chronic conditions or family history of illness.
☀️ Retirement-Friendly Weather and Outdoor Living
One of the main reasons retirees move is the climate. Sunshine, mild winters, and outdoor access can dramatically improve quality of life. But everyone has different preferences.
Here’s how top states break down by climate:
Arizona ☀️
- 300+ sunny days per year
- Low humidity and little rainfall
- Popular retirement cities: Scottsdale, Tucson, Prescott
- Active outdoor lifestyle: golf, hiking, wellness spas
- Affordable housing options with growing retirement communities
North Carolina 🌄
- Mild climate with four seasons (but not harsh winters)
- Retirement hotspots like Asheville and Wilmington offer low cost and natural beauty
- Diverse terrain: beaches, forests, mountains
- Growing retiree population and tax benefits for military pensions
South Carolina 🏖️
- Warm weather and coastal charm
- Tax-friendly to retirees: no tax on Social Security, some exemptions on retirement income
- Cities like Charleston and Hilton Head are full of culture, dining, and medical care
- Housing and utilities still relatively affordable
Georgia 🍑
- Lower cost of living than Florida, with similar weather in southern areas
- Retirement-focused towns like Athens and Savannah
- No Social Security tax and partial exemption for other retirement income
- A strong network of parks and public spaces
✅ Weather + Taxes + Healthcare = Ideal Combo
Many of the best retirement states offer more than just warm temperatures. Look for a place where you can stay active and healthy—not just warm.
🏆 State-by-State Breakdown: Top Picks for 2025
Let’s summarize a selection of top retirement states for 2025 based on taxes, healthcare, cost of living, climate, and livability.
| State | Pros | Watch Out For |
|---|---|---|
| Florida | No income tax, warm weather, excellent services for seniors | Crowded in coastal cities |
| Arizona | Dry, sunny, low cost of living, strong outdoor culture | Hot summers, limited water supply |
| North Carolina | Four seasons, low taxes, healthcare access | Some areas prone to hurricanes |
| Tennessee | No income tax, low property taxes, great scenery | Rising home prices in urban areas |
| South Dakota | No income tax, low property tax, quiet living | Cold winters |
| New Hampshire | Low crime, high health scores, no income tax | High property taxes |
| Colorado | Healthy lifestyle, stunning views, Medicare-friendly cities | Higher housing costs in Denver area |
| Delaware | No sales tax, low property tax, senior-focused communities | Weather is cooler, especially winter |
| Idaho | Beautiful landscapes, growing retiree hubs | Rural areas can lack services |
| Texas | No income tax, warm weather, variety of cities | Property taxes can be high |
Each of these states offers unique pros and cons, but all rank highly for retirees based on data from U.S. News & World Report, WalletHub, Kiplinger, and AARP.
👥 Community and Social Life Matter Too
Taxes, healthcare, and climate matter—but social connection is just as important to a fulfilling retirement.
Look for places with:
- Senior centers and lifelong learning programs
- Volunteering and civic engagement opportunities
- Religious or cultural communities
- Public libraries, walking groups, and rec centers
- Intergenerational neighborhoods
Places That Excel at This:
- Asheville, NC: Progressive, artsy, and welcoming
- Boulder, CO: Health-conscious, highly educated, social
- Sarasota, FL: Rich in events, arts, and senior living
- Madison, WI: College-town vibe, safe, walkable
- Boise, ID: Tight-knit, affordable, growing senior population
🧠 Pro Tip: Visit the city before you move. Attend local events, walk the neighborhoods, and talk to residents. Real community isn’t measured in data—it’s felt on the ground.
📊 Comparing Tax-Friendly vs. Lifestyle-Friendly States
Choosing where to retire isn’t about picking a state with the lowest taxes or the nicest weather—it’s about finding the right balance for your personal needs.
Let’s compare a few common retirement goals and which states excel in each:
| Retirement Goal | Best State(s) | Why |
|---|---|---|
| Maximize tax savings | Florida, South Dakota, Tennessee | No income tax, low property taxes |
| Affordable housing | Mississippi, Arkansas, Missouri | Below-average home prices |
| Best healthcare access | Minnesota, Massachusetts, Connecticut | Top-rated hospitals, Medicare plans |
| Warm weather year-round | Arizona, Florida, South Carolina | Mild winters and sun-filled days |
| Cultural & social life | North Carolina, Colorado, Wisconsin | Art, music, social programs |
| Access to outdoor living | Oregon, Idaho, Utah | Mountains, rivers, trails |
| Safe and quiet lifestyle | Vermont, New Hampshire, Iowa | Low crime, peaceful communities |
🧠 Key Takeaway:
You don’t need to check every box. Choose the three or four criteria that matter most to you—then look for a state that fits those priorities well.
For example:
- Want low taxes and warm weather? → Florida
- Want top healthcare and vibrant community? → Minnesota
- Want quiet, nature, and affordability? → Arkansas or Idaho
- Want a mix of everything? → North Carolina
🏡 Renting vs. Buying in Retirement
Where you live also depends on how you choose to live—especially when deciding between renting or buying.
Benefits of Renting:
- Flexibility to relocate
- No home maintenance costs
- Can avoid property taxes
- Easier access to senior communities or assisted living
Benefits of Buying:
- Builds equity (even in retirement)
- Property tax exemptions for seniors in some states
- Stability and familiarity
- Legacy value for heirs
📝 Tip: In high-cost states like California or New York, renting may be more affordable and less stressful than owning. In low-cost states like Alabama or Indiana, buying may be the better long-term financial decision.
You may also consider 55+ communities, which combine ownership with built-in social, recreational, and healthcare amenities.
✈️ Moving in Retirement: Tips and Considerations
Thinking of relocating to a new state after you retire? You’re not alone—more than 300,000 Americans move states every year after age 60.
Here’s how to do it smartly:
1. Test Drive the State First
Spend 2–3 weeks there during different seasons. Talk to locals, explore services, and see how it feels.
2. Research Taxes Thoroughly
Check property, sales, and retirement income tax. Some states tax pensions, others exempt military or Social Security.
3. Understand Residency Rules
To change your residency officially (and for tax purposes), you may need to:
- Register to vote
- Get a local driver’s license
- Change address on tax filings
- Spend more than 6 months there annually
4. Factor in Healthcare Access
Make sure your new state offers in-network Medicare Advantage or Medigap plans that fit your needs.
5. Consider Travel Needs
Are you close to an airport? How easy is it to visit family, or for them to visit you?
📌 If you plan carefully, moving in retirement can be one of the most freeing and financially beneficial decisions you make.
🧠 Conclusion: The Best State to Retire Is the One That Fits You
There’s no single “best state” to retire in—because retirement is deeply personal. The best place for you depends on your values, budget, lifestyle, and vision for your future.
Maybe you dream of a quiet home near the mountains. Or sunny days by the coast. Or lively mornings at a farmer’s market followed by community art classes. Whether your focus is on saving money, staying healthy, or being close to loved ones, the right state for retirement does exist.
Here’s the truth:
A good retirement isn’t just about money. It’s about peace of mind.
About waking up each day in a place that makes you feel safe, connected, and alive.
So take the time to explore, research, and imagine your future clearly. The decision you make today will shape your quality of life for decades to come.
❓ FAQ: Best States to Retire in the US
🟢 Which US states don’t tax retirement income?
States like Florida, South Dakota, and Tennessee don’t tax any earned or retirement income. Others like Illinois and Mississippi don’t tax Social Security or pensions, even if they have income tax. Always check specific rules—some states only exempt certain types of retirement income.
🟠 What is the cheapest state to retire in with good healthcare?
Mississippi and Arkansas are two of the most affordable states to retire in. While healthcare access can vary, mid-sized cities like Little Rock and Jackson offer solid medical facilities with low costs. For better healthcare + affordability, Missouri and New Mexico are strong alternatives.
🔵 What states are best for retirees with health conditions?
If healthcare is your top priority, consider Minnesota, Massachusetts, and Connecticut. These states consistently rank highest for hospital access, preventive care, and senior-focused Medicare plans. They may have higher taxes, but the medical care often offsets the cost.
🔴 Is it better to retire in Florida or North Carolina?
Florida is better for tax savings and warm winters, while North Carolina offers more climate variety, scenic mountains, and lower real estate prices. If you’re seeking culture and nature together, North Carolina may offer a more balanced lifestyle. If avoiding taxes is key, Florida wins.
This content is for informational and educational purposes only. It does not constitute investment advice or a recommendation of any kind.
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