Best States for Retirement Ranked 2025

Published

November 23, 2025

Finding the best states for retirement depends entirely on your own priorities, since the term “best” can be defined by many different factors. Some lists prioritize tax-friendliness and affordability, while others emphasize healthcare quality, safety, or climate preferences. Below you’ll find the states that lead for retirement living right now, how those results compare across different methodologies, and the common factors that make retirement destinations successful for different priorities and lifestyles.

Key Points (2025)

Top overall retirement states: New Hampshire ranks first in Bankrate’s comprehensive study, followed by Maine, Wyoming, Vermont, and Idaho, emphasizing safety, healthcare quality, and balanced affordability over warm weather alone.
Traditional favorites reassessed: Florida leads WalletHub’s ranking but dropped to 41st in Bankrate’s study due to affordability challenges with a score of 48th, weather concerns at 45th, and healthcare ranking 43rd, though it excels for retirees seeking warm climates and no state income tax.
Tax-friendly leaders: Nine states impose zero income tax on all retirement income including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, while nine others still tax Social Security benefits including Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
Cost reality: Hawaii requires $117,724 annually for comfortable retirement, the highest in the nation, while Mississippi, West Virginia, Oklahoma, Arkansas, and Missouri offer the lowest retirement costs under $67,000 annually, creating a $50,000 gap between most and least expensive retirement destinations.

Best States for Retirement (Overall Rankings)

Comprehensive retirement rankings evaluate multiple dimensions including healthcare quality, affordability, safety, taxes, climate, and quality of life amenities that matter to retirees beyond any single factor. Different methodologies produce varying results, but patterns emerge showing which states consistently perform well across the factors retirees prioritize when choosing where to spend their golden years.

Rank	State	Key Strengths	Why It Ranks High
1	New Hampshire	Safety, Healthcare, Taxes	New Hampshire tops Bankrate’s 2025 study with first place for neighborhood safety, fifth for healthcare quality, sixth for taxes, and seventh for concentration of people of similar age. The state charges only a 3 percent tax on interest and dividends while exempting Social Security and pension income, allowing retirement dollars to stretch further. The combination of strong healthcare infrastructure, exceptionally low crime rates, and fiscal advantages creates an environment where retirees can focus on enjoying life rather than worrying about security or medical access.
2	Maine	Safety, Quality of Life	Maine ranks second in Bankrate’s study with the lowest violent crime rate in America at just 102.5 per 100,000 residents, pristine air quality, natural beauty from coastline to mountains, and a genuine sense of community in small towns. The state shows 23.5 percent of its population over 65, creating built-in peer communities and age-appropriate services. Monthly retirement costs for a single person run $3,460 after Social Security, making Maine moderately affordable despite higher housing costs in coastal areas.
3	Wyoming	Taxes, Affordability	Wyoming ranks third in Bankrate and first in some affordability-focused rankings, offering no state income tax on any retirement income including Social Security, pensions, and IRA distributions. Low population density creates a peaceful lifestyle with stunning natural beauty including Yellowstone and Grand Teton national parks. Housing costs remain moderate outside Jackson Hole, and property taxes stay reasonable. The state struggles only with harsh winters and limited healthcare access in rural areas.
4	Vermont	Safety, Community	Vermont ranks fourth with exceptional safety showing 173.4 violent crimes per 100,000 residents, strong community engagement with the seventh-most neighborhood watch groups per capita, and picturesque small-town living. The state shows 22.9 percent of residents over 65, indicating established senior communities. However, Vermont does tax Social Security for higher earners, and monthly costs run $3,474 for single retirees after Social Security, placing it among more expensive retirement destinations.
5	Idaho	Affordability, Recreation	Idaho ranks fifth with abundant outdoor recreation from skiing to hiking, lower crime rates than national averages, and strong community values. However, recent migration from California and Washington drove home prices up over 56 percent since 2020, eroding affordability advantages that previously made Idaho attractive. The state does not tax Social Security benefits, and property taxes remain moderate, though housing costs now present challenges for new retirees on fixed incomes.
6	Utah	Healthcare, Community	Utah ranks sixth in Bankrate’s study with excellent healthcare systems, strong community bonds, abundant outdoor recreation, and low crime rates. The state offers a Social Security tax credit for low-income retirees, though it does tax retirement income. Utah’s family-oriented culture creates supportive environments, and the concentration of national parks provides endless recreation opportunities for active retirees.
7	Rhode Island	Healthcare, Cultural Access	Rhode Island ranks seventh with strong healthcare systems, low violent crime relative to density, coastal beauty, and proximity to Boston for cultural amenities and medical specialists. The small state offers ocean access throughout, creating resort-like living year-round. However, Rhode Island does tax Social Security for higher earners, and housing costs run elevated in desirable coastal communities.
8	Virginia	Healthcare, Mild Climate	Virginia balances four distinct seasons without extreme cold or heat, strong healthcare access particularly in Northern Virginia and Richmond areas, low violent crime rates, and diverse geography from mountains to beaches. The state does not tax Social Security benefits and offers a subtraction for certain retirement income. However, Northern Virginia housing costs run very high, while southern and western areas remain more affordable.
9	Minnesota	Healthcare Excellence	Minnesota ranks second in WalletHub’s study due to one of the nation’s top healthcare systems including the Mayo Clinic, low crime rates, and strong quality of life despite harsh winters. The state offers excellent healthcare access with the seventh-best ratio of primary care physicians per capita. Minnesota does tax Social Security for higher earners above $108,320 for couples, and cold winters deter some retirees despite the state’s many strengths.
10	Florida	Taxes, Climate	Florida leads WalletHub’s ranking with no state income tax on any retirement income, warm weather year-round, abundant retirement communities designed specifically for seniors, and Medicare-approved facilities concentrated due to large retiree population. However, Bankrate ranks Florida 41st overall due to affordability challenges at 48th, weather concerns including extreme heat and hurricanes at 45th, and healthcare ranking 43rd despite facility concentration. Rising insurance costs and housing prices have eroded Florida’s affordability advantage significantly.

Sources: Bankrate America’s Best States To Retire In 2025; WalletHub Best States to Retire 2025; House Beautiful retirement analysis; AWJ Law retirement study 2025.

Most Tax-Friendly States for Retirees

Taxes significantly impact retirement budgets by determining how much of your fixed income you actually keep after state governments take their share. Nine states impose zero income tax on all retirement income, creating substantial savings that compound over decades of retirement. Understanding which states offer tax advantages helps retirees maximize their purchasing power and preserve nest eggs.

State	Tax Treatment	Additional Tax Considerations
Alaska	No state income tax	Alaska doesn’t tax Social Security, pensions, IRA distributions, or any retirement income at the state level. The state even pays residents annual Permanent Fund dividends from oil revenue, though high cost of living and extreme isolation offset these tax advantages for many retirees who find the climate and distance from family challenging.
Florida	No state income tax	Florida ranks 4th in tax competitiveness according to Tax Foundation’s 2025 State Competitiveness Index. Sales taxes run lower than many southern states, and owner-occupied homes carry a property tax rate of just 0.71 percent, well below national averages. However, rising homeowners insurance costs driven by hurricane exposure and sales taxes on purchases still impact retirement budgets in ways that pure income tax numbers don’t capture.
Nevada	No state income tax	Nevada doesn’t tax retirement income of any kind at the state level, creating genuine savings for retirees with substantial nest eggs. Property taxes run moderate compared to other western states, though sales taxes reach 8.38 percent in Las Vegas when you include local rates. Healthcare access varies significantly between urban Las Vegas and Reno areas with full services versus rural areas with limited specialists.
New Hampshire	No state income tax (limited)	New Hampshire charges a 3 percent tax only on interest and dividends, while exempting Social Security, pensions, and retirement account distributions entirely from state taxation. Property taxes run high at 2.09 percent, representing the trade-off the state makes for not collecting income tax. Despite this property tax burden, New Hampshire still ranks 6th overall for taxes in Bankrate’s retirement study because most retirees’ income comes from sources the state doesn’t tax.
South Dakota	No state income tax	South Dakota imposes no tax on any retirement income, keeps property taxes low compared to many states, and charges no state estate or inheritance taxes that can burden heirs. The state ranks 5th in WalletHub’s retirement study due to this favorable tax treatment. However, harsh winters and limited cultural amenities in much of the state deter some retirees despite the excellent tax treatment.
Tennessee	No state income tax	Tennessee doesn’t tax Social Security, pensions, or retirement distributions at the state level, making it attractive for retirees seeking to preserve nest eggs. Property taxes stay moderate compared to other states, though sales taxes reach high levels to compensate for the lack of income tax revenue. Strong healthcare systems and growing retirement communities in Nashville, Memphis, and Knoxville areas provide good infrastructure for aging populations.
Texas	No state income tax	Texas ranks 7th for local taxes in Bankrate’s study, reflecting favorable overall tax treatment despite some challenges. However, property taxes run high at 1.90 percent annually, offsetting some of the income tax advantages when you calculate total tax burden over years of retirement. Sales taxes also run elevated to help fund government services without income tax. Excellent medical centers exist in major cities like Houston, Dallas, and San Antonio, though healthcare ranks 50th overall due to significant access challenges in rural areas.
Washington	No state income tax	Washington doesn’t tax retirement income at the state level, though it recently imposed a capital gains tax on high earners that affects some wealthier retirees. Property taxes remain moderate for the western region, while sales taxes run elevated compared to national averages. However, the high overall cost of living and rising housing costs in desirable areas erode the tax advantages. Seattle area property crime challenges also concern some retirees evaluating overall security.
Wyoming	No state income tax	Wyoming doesn’t tax Social Security, pensions, IRA distributions, or any retirement income at the state level, while also keeping property taxes and sales taxes moderate compared to other states. This combination ranks Wyoming 3rd in Bankrate’s comprehensive study because the tax advantages are genuine rather than being offset by elevated costs elsewhere. Harsh winters and limited healthcare access in rural areas represent the main drawbacks rather than financial concerns.

States That Do Not Tax Social Security But May Tax Other Income: Several additional states exempt Social Security benefits from taxation while still taxing other retirement income like pensions and IRA distributions at varying rates. Iowa recently made retirement income tax-exempt for residents 55 and older starting in 2025, moving to a flat 3.8 percent income tax rate while completely eliminating taxes on retirement income for this age group. The state also eliminated its inheritance tax for 2025 and beyond, creating significant new advantages for retirees and their heirs. Mississippi does not tax Social Security and offers generous exemptions on other retirement income for residents over 59 and a half, making it financially attractive despite challenges in other areas like healthcare access. Pennsylvania does not tax Social Security or retirement distributions from 401k and IRA accounts, though it does tax some pension income depending on the source and type.

Sources: Greenback Tax Services States That Don’t Tax Retirement Income 2025; Kiplinger Retirement Taxes 2025; STW Serve Best States for Federal Retirees 2025; Money.com Social Security state taxes 2025.

States That Still Tax Social Security Benefits

While most states have eliminated taxes on Social Security benefits recognizing that retirees on fixed incomes need every dollar, nine states still tax these benefits in 2025, though several offer exemptions based on income levels. Understanding which states tax Social Security helps retirees avoid unexpected tax bills that reduce their purchasing power when budgets are already tight.

The nine states taxing Social Security in 2025 are Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. However, most of these states offer exemptions or reduced rates for lower-income retirees, meaning the tax primarily affects higher earners rather than those fully dependent on Social Security for their living expenses.

Colorado charges a 4.4 percent state income tax rate, but the state allows individuals 65 and older to deduct Social Security benefits for state tax purposes entirely. As of 2025, taxpayers between 55 and 64 whose income falls under certain thresholds can also deduct their Social Security benefits, while some younger disability beneficiaries must still pay taxes on these benefits depending on their total income.

Connecticut taxes Social Security benefits only when adjusted gross income exceeds $75,000 for individuals or $100,000 for couples filing jointly. Even when income crosses these thresholds, 75 percent of Social Security benefits remain exempt from state taxes, limiting the actual tax burden to just a quarter of benefits and only for higher-income retirees who can better afford the tax.

Minnesota exempts married couples filing jointly if their adjusted gross income falls below $108,320, with the cutoff at $84,490 for single filers. Higher-income Minnesotans face taxes on their Social Security benefits, though state lawmakers are actively considering bills to end all taxation of Social Security benefits following the trend in other states.

Montana taxes Social Security benefits for higher earners, though the state offers various retirement income deductions that can offset this burden depending on your total income and filing status. The exact impact varies significantly based on individual circumstances rather than following a simple formula.

New Mexico taxes Social Security as regular income under the state’s income tax structure, though lower-income retirees may qualify for exemptions through other provisions in the tax code. The state ranks 50th for safety with the nation’s highest violent crime rate, which compounds retirement challenges beyond just tax treatment.

Rhode Island taxes Social Security benefits for higher earners, though the state offers strong healthcare systems and beautiful coastal living that attract retirees despite this tax disadvantage. Most lower-income retirees avoid the tax entirely through generous exemptions that protect those most dependent on Social Security.

Utah taxes retirement income including Social Security under its regular income tax system, though it offers a tax credit specifically for Social Security benefits that reduces or eliminates the tax for many lower-income retirees. The credit phases out as income rises, meaning wealthier retirees bear more of the tax burden.

Vermont taxes Social Security benefits for higher earners while exempting lower-income retirees through income-based thresholds that are relatively generous compared to some other states. Combined with Vermont’s already high cost of living due to expensive housing and property taxes, the Social Security tax makes Vermont one of the more expensive retirement destinations despite exceptional safety and quality of life.

West Virginia taxes Social Security benefits currently, though the state offers some of the nation’s lowest retirement costs at just $2,264 monthly for single retirees after accounting for Social Security income. The state recently passed legislation to phase out the Social Security tax over time, which will improve its retirement friendliness significantly going forward as this tax gradually disappears.

Kansas and West Virginia both passed laws in recent years to eliminate or phase out Social Security taxes, reflecting a broader national trend toward exempting these benefits from state taxation as competition for retirees intensifies and states recognize the economic value of attracting and retaining senior residents.

Annual Retirement Costs by State (2025)

Understanding what retirement actually costs in different states helps retirees set realistic budgets and choose destinations where their nest eggs will last throughout their retirement years without forcing painful cutbacks. The gap between most and least expensive states exceeds $50,000 annually, creating dramatically different standards of living depending on where you choose to spend your retirement.

Most Expensive Retirement States

Hawaii requires $117,724 annually for comfortable retirement without relying on Social Security income, by far the highest cost in the nation driven primarily by extreme housing expenses with median home prices of $973,555, elevated costs for food and consumer goods that must be shipped thousands of miles to the islands, and generally high prices across virtually all categories of spending. The District of Columbia follows at $100,879 annually, representing the only other location where comfortable retirement exceeds $100,000 in annual spending. California, New York, and Massachusetts round out the most expensive retirement destinations, where annual costs exceed $75,000 even with careful budgeting and conscious efforts to control discretionary spending.

Monthly costs after Social Security benefits tell a similar story about regional expense differences. Maine requires $3,460 monthly for single retirees and $2,505 for couples after Social Security income covers part of their expenses. Vermont follows closely at $3,474 monthly for singles and $2,520 for couples after Social Security. These northeastern states combine elevated housing costs with higher expenses for heating homes through cold winters, property taxes that fund quality services, and daily living costs that run above national averages despite offering exceptional quality of life and safety.

Most Affordable Retirement States

Mississippi offers the lowest retirement costs in America with annual spending for comfortable retirement coming in under $60,000 and monthly costs of just $2,917 for singles and $1,962 for couples after Social Security income. West Virginia follows with $2,264 monthly for singles and $1,309 for couples, making it one of the five most affordable states for retirement despite taxing Social Security benefits that other affordable states exempt.

Oklahoma, Arkansas, and Missouri round out the most affordable states where couples can retire comfortably for under $5,000 annually in out-of-pocket costs after Social Security income covers the majority of basic expenses. Virginia shows just $4,032 annually for couples after Social Security, Mississippi requires $4,917, Kansas needs $4,264, Alabama $4,626, and Oklahoma $4,976, all creating opportunities for retirees on modest fixed incomes to maintain decent living standards without constant financial stress.

The affordability advantage in these states comes primarily from low housing costs where median home prices run under $230,000 in most areas. However, the least expensive states often come with trade-offs: lower healthcare quality rankings in some cases, higher crime rates in certain areas (e.g., Louisiana is the nation’s most unsafe state), fewer cultural amenities, and potentially less desirable climates depending on individual preferences. Balancing cost savings against quality of life factors requires careful consideration of individual priorities and what matters most for your particular retirement vision.

Worst States for Retirement (Challenges to Avoid)

While every state has areas that work well for certain retirees with specific priorities, some states consistently rank at the bottom of retirement studies due to combinations of high costs, poor healthcare access, safety concerns, or unfavorable tax treatment. Understanding which states present the most challenges helps retirees avoid destinations that may compromise their financial security or quality of life during years when fixing mistakes becomes increasingly difficult.

Louisiana (Ranked 50th): Ranks dead last due to consistently low scores: 48th for neighborhood safety (highest murder rate at 14.4 per 100,000), 43rd for affordability, and 42nd for similar-aged communities. Severe safety challenges and limited healthcare access outweigh cost advantages.
Texas (Ranked 49th): Ranks 50th for healthcare costs and 47th for weather (extreme heat/cold). Property taxes of 1.90 percent offset the lack of state income tax.
Oklahoma (Ranked 48th): Challenges including affordability ranking just 32nd despite low housing costs, healthcare ranking only 8th (access issues), and safety concerns. Faces substantial tornado exposure.
Arkansas (Ranked 47th): Affordability challenges at 43rd, healthcare ranks only 7th (access issues), and safety concerns ranking 2nd with above-average crime rates.
Hawaii (Cost Worst): Requires $117,724 annually (highest expense). Median home price: $973,555. Extreme cost makes retirement financially unsustainable for most, despite good weather.
New York: Ranks second-worst in cost-focused studies due to extreme housing costs, high state/local taxes, and elevated cost of living across all categories.
California: High cost analyses due to median home price of $809,227 and the nation’s highest state income tax at 12.3 percent. Costs across all categories exceed national averages.
New Jersey: Challenged by the nation’s highest property tax rate at 2.46 percent, which adds over $10,000 annually to housing costs.

The pattern across worst-ranked retirement states involves either extreme costs that overwhelm even substantial retirement budgets over time, serious safety concerns that compromise quality of life, poor healthcare access that risks negative health outcomes, or combinations of these factors.

Healthcare Quality by State for Retirees

Healthcare access and quality become increasingly critical as retirees age and face more frequent medical needs, chronic conditions that require ongoing management, and the reality that minor health issues can quickly become serious without proper care. The quality of a state’s healthcare system directly influences retirees’ longevity, ability to maintain independence, and daily quality of life, making it a primary consideration when choosing retirement destinations that will serve you well through your seventies, eighties, and potentially into your nineties.

Top Healthcare States:

Rhode Island and Hawaii lead comprehensive healthcare rankings with strong systems. Massachusetts offers the best healthcare among top-ranked retirement states, showing the nation’s lowest premature death rate, 97.4 percent health insurance coverage, and world-class medical institutions. Minnesota ranks second for overall retirement quality partly due to hosting the Mayo Clinic and ranking seventh nationally in primary care physicians per capita. New Hampshire ranks 5th specifically for healthcare quality in Bankrate’s retirement study.

States with Healthcare Challenges:

Mississippi and Alabama fall short with limited access to medical professionals and lower overall health outcomes for seniors. Texas ranks 50th specifically for healthcare costs in Bankrate’s retirement study because access varies dramatically between major metros and rural areas. New Mexico faces healthcare challenges that compound its severe safety issues as the state with the nation’s highest violent crime rate.

Medicare Considerations:

Medicare works in all 50 states, but Medicare Advantage plans may have network limitations that vary significantly. Florida leads the nation in Medicare-approved facilities due to its enormous senior population. Texas offers excellent medical centers in major cities, and Tennessee provides quality healthcare at costs running lower than national averages.

Rural areas even in otherwise strong healthcare states may show limited specialist access, requiring drives of an hour or more. Retirees with chronic conditions should verify that appropriate specialists and facilities exist within reasonable driving distance before committing to retirement locations.

Methodology & Definitions for Retirement Rankings

Different retirement rankings measure fundamentally different aspects of what makes a state suitable for retirees, which explains why Florida can lead one ranking while placing 41st in another seemingly contradictory result. Understanding what each methodology emphasizes helps retirees choose rankings that align with their specific priorities:

Comprehensive rankings: Bankrate evaluates states across eight distinct categories (safety, healthcare, affordability, weather, tax, peers, arts, wellbeing). This balanced approach reveals states excelling across multiple dimensions.
Tax-focused rankings: Emphasizes income tax treatment of Social Security, pension, IRA/401k distributions, plus property and sales taxes. The nine states with zero income tax naturally rank highest.
Affordability rankings: Measures annual spending required, monthly costs remaining after Social Security, housing prices, and cost of living indices. Mississippi, West Virginia, and Oklahoma rank highest.
Healthcare quality rankings: Evaluates access to physicians/specialists per capita, hospital quality ratings, health outcomes (premature death rates, life expectancy), and Medicare Advantage plan availability. Massachusetts, Minnesota, and Rhode Island lead.
Quality of life rankings: Blends safety from crime/disasters, cultural amenities, outdoor recreation, climate preferences, and community engagement to capture daily satisfaction. New England states excel here.

A 90-Second Retirement State Comparison

Understanding how to efficiently compare retirement destinations helps you focus research time on factors that actually matter for your situation rather than getting overwhelmed by conflicting information. Start by identifying your top three non-negotiable priorities from options like affordability that keeps expenses manageable on fixed income, tax treatment that preserves your nest egg, healthcare quality that ensures good care as you age, safety that provides peace of mind, climate preferences for daily comfort, proximity to family for support and connection, or cultural amenities that enrich daily life. Once you know your priorities, choose retirement rankings that emphasize those specific factors rather than trying to reconcile conflicting methodologies that weight factors differently based on what their creators consider most important.

The next step involves thoroughly checking tax treatment for your specific retirement income sources rather than relying on general descriptions. You need to know whether your target states tax Social Security benefits that may represent a large portion of your income, how they treat pension payments if you have one, whether they tax 401k and IRA distributions you’ll need to take, and what property tax rates will actually cost you annually on homes in your realistic price range. These tax differences compound over potentially 20 or 30 years of retirement, turning seemingly small percentage differences into tens of thousands of dollars over time.

Healthcare access deserves careful research within the specific communities you’re actually considering rather than relying on state-level healthcare rankings, since access varies dramatically between urban medical centers with full specialist availability and rural areas with limited services even within top-ranked healthcare states. You need to identify what hospitals and medical centers exist within 60 minutes of your target community, verify they have the specialists relevant to any chronic conditions you manage, and confirm Medicare Advantage plans you might want to use actually have networks including these facilities.

Calculating actual retirement costs for your specific lifestyle provides much more useful information than published state-level averages. Use detailed cost-of-living calculators that let you input your expected housing costs whether mortgage payments or rent, property taxes based on your actual target home price, homeowners insurance rates in that specific area, utilities adjusted for local climate and rates, healthcare premiums for your insurance choices, out-of-pocket medical costs based on your health status, groceries for your household size, transportation whether car ownership or other options, and discretionary spending for the activities and travel that make retirement enjoyable rather than just existing.

The final step that many retirees skip involves visiting target communities during different seasons if at all possible, rather than just seeing them during the most pleasant weather that doesn’t represent year-round reality. These visits let you actually experience weather extremes rather than just reading about them, observe how active other retirees remain year-round in that climate, check traffic patterns and infrastructure quality that affect daily life, and most importantly verify whether you genuinely enjoy the community’s character and pace beyond what statistics and descriptions suggest.

Regional Retirement Patterns

Retirement destinations cluster geographically in ways that reveal regional strengths and challenges across the different factors retirees prioritize when choosing where to spend their golden years. Here’s how retirement-readiness typically looks across different regions of the country:

Northeast

The Northeast dominates quality of life and safety rankings with four of Bankrate’s top 10 retirement states concentrated in this relatively small region, including New Hampshire ranking first overall, Maine second, Vermont fourth, and Rhode Island seventh. These states offer exceptional healthcare access with world-class hospitals and high ratios of doctors to patients, nation-leading safety with violent crime rates consistently below 200 per 100,000 residents, strong community bonds rooted in small-town traditions, and picturesque living that attracts people seeking natural beauty. However, cold winters that can last five months deter some retirees who struggle with ice, snow, and limited outdoor activity, and costs run elevated with Maine requiring $3,460 monthly after Social Security and Vermont $3,474 for single retirees. Property taxes in New Hampshire at 2.09 percent offset its income tax advantages when you calculate total tax burden. Massachusetts offers world-class healthcare centered in Boston but presents extreme housing costs that make retirement challenging for all but the wealthiest despite not taxing Social Security benefits.

South

The South attracts the most retirees in absolute numbers, driven largely by Florida’s combination of no state income tax and warm weather year-round that appeals to cold-weather refugees, though Bankrate ranks Florida just 41st when balancing all factors due to affordability challenges at 48th and healthcare quality at 43rd despite abundant facilities. Tennessee, South Carolina, and North Carolina offer better overall value with Tennessee charging no income tax on retirement income, all three providing milder climates than the Northeast without Florida’s extreme summer heat, lower housing costs that stretch retirement budgets further, and steadily growing healthcare infrastructure as these states attract more retirees. However, Louisiana ranks dead last nationally for retirement due to severe safety concerns with the nation’s highest murder rate creating genuine danger, while Arkansas and Oklahoma both rank in the bottom five facing affordability and healthcare challenges despite having low housing costs that initially appear attractive. The southern region shows such dramatic variation between best and worst retirement destinations that you cannot make assumptions based purely on geographic location, requiring careful community-level research rather than regional generalizations.

Midwest

Midwestern states offer balanced retirement value combining affordability with quality services that create good living conditions without extreme costs. Minnesota ranks 2nd in WalletHub’s methodology due to exceptional healthcare centered around the Mayo Clinic despite harsh winters that confine people indoors for months and Social Security taxes that reduce income for higher earners. Iowa made retirement income completely tax-exempt for residents 55 and older starting in 2025 while moving to a flat 3.8 percent income tax rate, creating significant new advantages alongside already affordable housing throughout the state. Wisconsin, Nebraska, and South Dakota all appear in top rankings across different methodologies, offering moderate costs that don’t strain retirement budgets, low crime rates in most communities that provide peace of mind, and strong community values rooted in midwestern traditions. However, cold winters lasting from November through March and limited cultural amenities compared to coastal metropolitan areas deter some retirees whose priorities emphasize year-round outdoor activity and urban sophistication. Illinois presents challenges for retirees despite Chicago’s world-class cultural amenities, excellent restaurants, and major medical centers due to high taxes that drive persistent outmigration as residents flee for lower-tax alternatives.

West

Western states show extreme variation from excellent to genuinely challenging retirement destinations depending on specific location choices. Wyoming ranks 3rd in Bankrate’s comprehensive study with no income tax on any retirement income, low property taxes that keep ongoing costs manageable, and stunning natural beauty including Yellowstone and Grand Teton national parks providing endless recreation, though harsh winters with heavy snow and limited healthcare access in rural areas challenge retirees with significant medical needs. Idaho ranks 5th but faces the problem that rapid home price appreciation exceeding 56 percent since 2020 has eroded the affordability advantages that previously made it attractive to retirees fleeing expensive California and Washington markets. Utah ranks 6th with excellent healthcare systems including strong hospitals, abundant outdoor recreation across national parks and public lands, and strong community bonds, despite taxing retirement income unlike some neighboring states. However, Alaska leads the entire nation with 57 percent outbound moves showing more people leaving than arriving, driven by extreme isolation from the lower 48 states, harsh climate with long dark winters, and limited economic and cultural opportunities despite financial advantages like no income tax and Permanent Fund dividends. New Mexico struggles with the nation’s highest violent crime rate at 780 per 100,000 residents making safety a serious concern despite relatively low costs. California and Washington both face extreme housing costs that make retirement unaffordable for most people despite beautiful climates in coastal areas and excellent healthcare systems concentrated in urban regions where costs run highest.

Data Glossary

Annual spending for comfortable retirement:
estimated total annual expenses needed to maintain a comfortable lifestyle in retirement without relying on Social Security income to cover basic costs, capturing housing, healthcare, food, utilities, transportation, insurance, and discretionary spending for activities that make retirement enjoyable. Hawaii leads the nation at $117,724 while Mississippi shows the lowest at under $60,000, creating a massive gap in what retirement actually costs.
Monthly retirement cost after Social Security:
estimated monthly expenses remaining after subtracting average Social Security benefits from total costs, revealing the actual out-of-pocket money retirees need from savings and other income sources. Maine shows $3,460 for singles while West Virginia shows just $2,264, demonstrating regional cost variations.
Tax-friendly state:
states that do not tax Social Security benefits, pension income, IRA distributions, or other retirement income sources, or alternatively offer substantial exemptions that significantly reduce tax burden on the fixed incomes seniors live on during retirement. Nine states charge absolutely zero income tax on all retirement income.
Healthcare access:
measured through ratios of primary care physicians and specialists per capita showing availability, average distance to hospitals and medical centers that determines emergency response times, Medicare Advantage plan availability that affects treatment options, and health outcomes including life expectancy and premature death rates that reflect system quality.
Retirement income sources:
includes Social Security benefits that most retirees receive, traditional pension payments for those with employer pensions, 401k and IRA distributions from retirement savings, investment income including dividends and interest from portfolios, part-time work earnings for those continuing employment, and annuity payments that some retirees purchase for guaranteed income streams.
Property tax rate:
annual tax expressed as a percentage of home value, representing a critical ongoing cost for retirees because it must be paid annually even after paying off mortgages that no longer exist. Rates range dramatically from just 0.29 percent in Hawaii to 2.46 percent in New Jersey, creating vastly different ongoing burdens.

Planning Checklist for Retirement Location Research

Financial Analysis (1 hour)

Understanding your complete financial picture helps you evaluate whether target retirement states truly fit your budget or just appear affordable before you examine the details. Begin by calculating your total retirement income from all sources including Social Security benefits you expect to receive, traditional pension payments if you have one, required minimum distributions from retirement accounts starting at age 73, investment income from dividends and interest, and any part-time work earnings you plan to continue. Next, research the specific tax treatment in your candidate states for each of these income sources separately rather than relying on general descriptions, calculating your actual tax burden based on your real income levels. This means looking up whether the state taxes Social Security at your income level, how it treats pension income from your specific source, what rate applies to IRA distributions, and whether interest and dividends face taxation. Finally, estimate your total annual expenses in each target state including realistic housing costs whether mortgage payments or rent, property taxes calculated on homes in your actual price range, homeowners insurance rates for that specific area, utilities adjusted for local climate and provider rates, healthcare premiums for your insurance choices, out-of-pocket medical costs based on your health status, groceries reflecting your household size, transportation costs whether car ownership or alternatives, and discretionary spending for travel and the activities that will make your retirement enjoyable rather than just affordable.

Healthcare Research (45 minutes)

Healthcare access directly affects both your longevity and your daily quality of life, making it worth substantial research time before committing to a retirement location. Start by identifying the hospitals and medical centers located within 60 minutes driving time of your target communities, then check their ratings through CMS Hospital Compare or other rating systems, and verify they have the specialists relevant to any chronic conditions you currently manage or anticipate needing. Next, research Medicare Advantage plan availability and network coverage in your target areas if you plan to use these plans rather than traditional Medicare plus supplemental insurance, verifying that your preferred doctors and facilities actually participate in available networks so you can access them affordably. Also check prescription drug costs and pharmacy access in your target communities, since medication expenses can significantly impact retirement budgets for those managing chronic conditions like diabetes, heart disease, or other issues requiring ongoing prescriptions.

Community Evaluation (2-3 days visiting)

Statistics and descriptions only tell you so much about whether you’ll actually enjoy living somewhere, making personal visits essential before committing to retirement locations. Try to visit your target communities during different seasons if your timeline allows, experiencing climate extremes rather than just the most pleasant weather, observing how active current retirees remain year-round in that climate, and verifying whether you genuinely enjoy the location beyond how it looks in marketing materials or online descriptions. Spend time talking with current retirees living in your target communities about their actual experiences with healthcare access and quality, cost of living reality versus what they expected when they moved, social opportunities they’ve found or struggled to create, and any challenges they faced adjusting to the area that you should consider. Take time to explore the cultural amenities like museums and performing arts, recreational facilities from gyms to golf courses, volunteer opportunities if you plan to stay active through service, and social organizations to verify that the community actually offers the activities and engagement opportunities matching your retirement vision rather than just assuming availability based on population size.

Why Retirement Rankings Disagree Between Sources

Different retirement rankings produce dramatically varying results because they measure fundamentally different aspects of what makes a location suitable for retirees and weight factors according to different value judgments about what matters most. Understanding why Florida can lead one ranking while placing 41st in another helps retirees interpret what each source actually reveals about retirement readiness.

Bankrate’s Comprehensive Approach

Bankrate emphasizes balance across eight distinct categories including neighborhood safety, healthcare quality and access, affordability of daily living, weather and climate, tax treatment of retirement income, concentration of similar-aged residents, arts and entertainment options, and overall wellbeing measures. This comprehensive approach explains why New Hampshire ranks first overall despite cold winters that some retirees can’t tolerate and elevated property taxes at 2.09 percent, because the state excels in safety ranking 1st nationally, healthcare ranking 5th showing excellent access, taxes ranking 6th due to exempting most retirement income, and similar-age population ranking 7th creating established senior communities. Florida drops all the way to 41st in Bankrate’s balanced methodology because poor scores for affordability at 48th reflecting rising costs, weather at 45th due to hurricanes and extreme summer heat, and healthcare quality at 43rd despite abundant facilities outweigh the advantages of no income tax and warm winters that attract many retirees.

WalletHub’s Affordability and Quality Focus

WalletHub focuses more heavily on affordability and quality of life factors, which explains why Florida leads its ranking with top scores for completely exempting all retirement income from state taxation, having the highest concentration of Medicare-approved facilities due to its enormous senior population, and offering year-round warm weather that appeals strongly to retirees fleeing cold northern winters. Minnesota ranks 2nd in WalletHub’s methodology due to healthcare excellence centered around the Mayo Clinic and strong quality of life despite cold climate and Social Security taxes, while Colorado ranks 3rd emphasizing healthcare quality and abundant outdoor recreation access despite elevated housing costs in the most desirable areas.

AWJ Law’s Cost-Weighted Study

AWJ Law’s study weights cost factors more heavily than other considerations, explaining why Florida, Nebraska, and Maryland lead while New Mexico, California, and New York rank worst in their analysis. This methodology captures annual spending required for comfortable retirement and cost of living indices that determine whether retirement budgets prove adequate to maintain desired lifestyles, but doesn’t capture quality of life factors or healthcare quality that might justify higher costs for retirees who can afford them.

Kiplinger’s Pure Financial Perspective

Kiplinger and other worst-state rankings often measure purely from financial perspective focused on stretching limited retirement budgets, which explains why Hawaii consistently ranks worst for retirement despite offering beautiful weather year-round and excellent healthcare systems, simply because it requires $117,724 annually for comfortable retirement that very few retirees can actually afford on typical Social Security and savings. These rankings reveal hard financial reality but deliberately don’t capture quality of life factors that might justify costs for the small minority of retirees with substantial wealth.

The variance between all these rankings means retirees should carefully examine the methodology behind each ranking system rather than assuming agreement across sources indicates universal truth. A retiree whose top priority is healthcare quality and safety should emphasize Bankrate’s comprehensive ranking that weighs these heavily, while someone focused primarily on stretching a modest fixed income as far as possible should prioritize cost-focused rankings like AWJ Law’s study. A retiree absolutely determined to escape cold winters entirely should weight warm-weather states higher despite challenges those locations face in dimensions like affordability or healthcare access that other retirees might consider more important.

How to Use Retirement Rankings for Your Decision

The smartest approach to using retirement rankings starts with understanding that they describe average experiences and priorities, not necessarily what will work for your specific situation, health status, financial reality, or lifestyle preferences. High rankings don’t guarantee satisfaction while low rankings don’t preclude finding perfect retirement communities if you know what you actually need.

First, identify your top three non-negotiable priorities from healthcare access for specific conditions, tax minimization to preserve nest egg, proximity to family, climate preferences, cultural amenities, outdoor recreation, or affordability on your fixed income. Then consult rankings emphasizing those factors rather than trying to find a state ranking first across all methodologies, since no location excels at everything and trade-offs are inevitable.

Second, verify that states ranking high on your priorities actually deliver in the specific communities you would consider, since state-level rankings mask enormous within-state variation. Florida’s overall ranking tells you nothing about whether Jacksonville versus Naples versus Panama City offers what you need. Texas’s healthcare ranking combines Houston’s world-class medical center with rural areas lacking specialists, requiring you to check your actual target location rather than relying on state averages.

Third, calculate your actual costs in target states using your specific income sources, expenses, and lifestyle rather than assuming published retirement cost estimates apply to your situation. A couple downsizing from a paid-off home with pension income plus Social Security faces very different math than a single retiree with only Social Security relying on rental income from investment properties. Run the numbers for your situation before assuming affordability.

Fourth, consider family proximity and established communities even if those locations rank lower overall, since isolation from family support systems and familiar communities creates challenges that good statistics cannot solve. Many retirees discover that staying near children and grandchildren outweighs cost savings or better weather in distant states where they know no one.

Finally, recognize that retirement location isn’t permanent despite the psychological weight of the decision. Many retirees successfully relocate multiple times as priorities shift with age and health changes. You might spend active retirement years in a recreation-focused destination, then relocate closer to family or to better healthcare as you age. Viewing retirement location as flexible rather than final reduces pressure to find perfection immediately.

If you are interested, we also prepared articles for States Ranked by Safety in 2025, States Ranked by Housing Affordability 2025, and States Ranked by Highest Number of People Leaving 2025

FAQ

What is the number one best state to retire in 2025?

New Hampshire ranks first in Bankrate’s comprehensive 2025 study, leading in neighborhood safety, ranking 5th for healthcare, 6th for taxes, and 7th for concentration of similar-aged residents. Florida leads WalletHub’s ranking emphasizing warm weather and tax advantages. The answer depends on whether you prioritize balanced quality of life or specific factors like climate or taxes.

Which states have no income tax on retirement income?

Nine states impose zero income tax on all retirement income: Alaska, Florida, Nevada, New Hampshire which only taxes interest and dividends at 3 percent, South Dakota, Tennessee, Texas, Washington, and Wyoming. These states allow Social Security, pension, and retirement account distributions to pass through entirely tax-free at the state level.

What states still tax Social Security benefits in 2025?

Nine states tax Social Security benefits: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. However, most offer exemptions or reduced rates for lower-income retirees, meaning the tax primarily affects higher earners. Kansas and West Virginia recently passed laws to phase out these taxes.

What is the cheapest state to retire in 2025?

Mississippi requires the lowest annual spending for comfortable retirement at under $60,000, with monthly costs of just $2,917 for singles and $1,962 for couples after Social Security. West Virginia follows at $2,264 monthly for singles and $1,309 for couples. Oklahoma, Arkansas, and Missouri also offer retirement costs under $67,000 annually.

What is the most expensive state to retire in?

Hawaii requires $117,724 annually for comfortable retirement, by far the highest in the nation, with median home prices of $973,555 and elevated costs across all categories. Washington DC follows at $100,879 annually, the only other location exceeding $100,000. California, New York, and Massachusetts round out the most expensive retirement destinations.

Why does Florida rank so differently in various retirement studies?

Florida leads WalletHub’s ranking emphasizing no state income tax and warm weather but ranks 41st in Bankrate’s comprehensive study due to affordability challenges at 48th, weather concerns including hurricanes at 45th, and healthcare ranking 43rd. The state excels for retirees prioritizing taxes and climate but struggles with rising costs and healthcare access relative to other factors Bankrate measures.

What happened to traditional retirement havens like Arizona and Texas?

Texas ranks 49th in Bankrate’s 2025 study due to healthcare costs ranking 50th and weather at 47th despite favorable tax treatment at 7th. Arizona shows similar patterns where extreme summer heat, rising costs, and healthcare access challenges offset no-income-tax advantages. These traditional destinations remain popular but face increasing competition from states offering better balanced retirement advantages.

References

John

A seasoned moving professional, he ensures hassle-free relocations. He's also the go-to person for valuable moving advice, curating and writing all the articles on Coastal Moving Services.

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