Choosing the perfect state for retirement is a major decision that depends on many factors—affordability, climate, healthcare access, and overall quality of life. With more Americans reaching retirement age, identifying the best places to settle down is more important than ever. Based on recent studies and expert evaluations, here are the ten best U.S. states to retire in—and why they stand out.
1. Delaware: A Tax-Friendly Gem
Delaware consistently ranks high for retirees, thanks to its favorable tax policies. There is no state or local sales tax, and residents enjoy exemptions on Social Security and retirement income up to $12,500.
Additionally, Delaware has a strong sense of community with a high percentage of older adults. Its moderate climate and rare extreme weather events make it a low-risk retirement option.
For tax information, visit Delaware Division of Revenue.
2. Florida: Sunshine and Savings
Florida has long been a top retirement destination. With no state income tax and no tax on pension income, it offers a financially friendly environment for retirees.
Florida’s warm climate and access to beaches, golf courses, and senior-friendly activities make it a haven for active retirees. Popular spots include Sarasota, Naples, and The Villages.
Learn more about Florida’s tax benefits at the Florida Department of Revenue.
3. Georgia: Southern Charm with Low Costs
Georgia combines a low cost of living with retirement income exclusions up to $65,000 per person for those over 65. The state’s mild winters and southern hospitality also add to its appeal.
Healthcare options in urban areas like Atlanta are abundant, and smaller cities such as Athens offer a relaxed pace of life without sacrificing amenities.
Tax details can be found at the Georgia Department of Revenue.
4. South Carolina: Coastal Comforts
South Carolina offers a compelling mix of affordability and natural beauty. The state exempts Social Security income from taxation and offers additional deductions for other retirement income.
Myrtle Beach and Charleston attract many retirees with their warm climate, scenic coastlines, and thriving senior communities.
Visit the South Carolina Department of Revenue for more details.
5. Virginia: Healthcare and Heritage
Virginia balances affordability and access to top-tier healthcare. Social Security income is not taxed, and retirees can deduct up to $12,000 of other retirement income.
With the Blue Ridge Mountains to the west and the Atlantic Coast to the east, Virginia also provides scenic variety and a rich historical backdrop.
Tax and retirement resources are available at the Virginia Tax Department.
6. Wyoming: No Income Tax and Big Skies
Wyoming is one of the few states with no state income tax. It also has a low cost of living and is ideal for retirees who enjoy outdoor recreation.
Yellowstone and Grand Teton National Parks are within reach, and the dry climate is often preferred by those with respiratory concerns.
Visit the Wyoming Department of Revenue for tax information.
7. Pennsylvania: Budget-Friendly and Historic
Pennsylvania offers no tax on retirement income, including pensions and Social Security. It also has one of the lowest overall tax burdens for retirees.
Cities like Pittsburgh and Harrisburg are popular among seniors for their cultural offerings and top-rated medical facilities.
For more on retirement taxation, visit the PA Department of Revenue.
8. Alabama: Affordable Living in the South
Alabama is highly affordable, with low property taxes and no tax on Social Security benefits. Retirees can also enjoy varied geography—from mountain towns to Gulf Coast beaches.
The climate is warm and relatively mild, especially in cities like Birmingham and Mobile.
Tax guidance is available via the Alabama Department of Revenue.
9. Colorado: Outdoor Living and Wellness
Colorado may have a slightly higher cost of living, but it’s a favorite for active retirees who value health and outdoor recreation. The state allows deductions on retirement income and has high healthcare ratings.
With over 300 days of sunshine a year and excellent hiking and skiing, Colorado is ideal for seniors who want to stay active.
See the Colorado Department of Revenue for more.
10. North Carolina: Scenic and Affordable
North Carolina blends affordability with natural beauty, from the Smoky Mountains to the Outer Banks. While retirement income is taxed, the state’s cost of living remains lower than the national average.
Cities like Asheville and Raleigh offer high-quality healthcare and vibrant senior communities.
Visit the NC Department of Revenue for retirement tax information.
Final Thoughts
While no one state is perfect for everyone, these ten states consistently rank high for retirees based on key factors like cost of living, taxes, healthcare, and quality of life. Whether you prefer coastal views, mountain air, or tax relief, there’s a retirement destination for every lifestyle.
Before making a decision, retirees are encouraged to evaluate personal priorities and visit the official state government sites for updated tax and healthcare information.
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