The Best And Worst States To Retire In
Retirement is much more than a life milestone; it’s your chance to create the lifestyle you’ve always dreamed of for your post-career years. If you’ve found yourself here, you’re likely already planning for this chapter and looking for more insight into one key pillar of retirement: location.
In the United States, choosing the state where you’ll settle is a decision that can shape the trajectory of your golden years. It affects critical aspects like the quality of healthcare, access to social security benefits, taxes on your income and property, housing costs—whether you plan to buy a single-family home, downsize, or rent an apartment—and, of course, the lifestyle and quality of life that will define this new phase.
Index
The Best And Worst States To Retire In
How Can I Find the Best State to Retire In?
Best and Worst States for Retirement: What the Rankings Say
Bankrate Report: The Best and Worst States to Retire in 2024
SmartAsset: Best States to Retire for Taxes
WalletHub: Best and Worst States to Retire in 2024
U.S. News & World Report: 2025 Best Places to Retire
Key Factors to Evaluate Retirement States
Availability of Cultural, Recreational, and Social Activities
Family Proximity and Support Networks
Continuing Care Retirement Communities (CCRCs)
States People Are Moving To and From
States With Net Migration Gains and Losses
How to Determine Your Best and Worst States
Tip 2: Create a Checklist of Must-Haves
Tip 4: Trial Run Living in Your Preferred State
How Can I Find the Best State to Retire In?
First, level your expectations and define your goals: Do you see yourself in a cosmopolitan setting full of things to do, a little retreat by the ocean, or a peaceful countryside spot? Do you care more about stretching your retirement savings/income or living waterfront in a place with warm weather that also offers quality of health care? Every state has its blend of perks and challenges for retirees, so knowing what you care for the most is vital when choosing the right state to retire to.
This guide will explore the best states to retire in, which ones may not meet your requirements, and the key factors to discriminate against them. These include state tax systems, cost of living and overall affordability, recreational opportunities for those 65 and older, and interstate migration trends. Our goal isn’t to tell you where to move but to provide the tools to determine which state best fits your unique needs for this exciting chapter of your life.
Best and Worst States for Retirement: What the Rankings Say
Rankings provide a valuable starting point for exploring potential retirement destinations and shaping your perspective, so here are some of them:
Bankrate Report: The Best and Worst States to Retire in 2024
This comprehensive ranking names the most and least favorable states for seniors to move to every year, considering data points like living costs, cost of healthcare, and overall quality of life. Here are their picks for 2024:
| Best States To Retire | Worst States to Retire |
| Delaware | Alaska |
| West Virginia | New York |
| Georgia | Washington |
| South Carolina | California |
| Missouri | North Dakota |
Bankrate Report 2024
SmartAsset: Best States to Retire for Taxes
The consumer-focused financial information site ranks states according to their tax friendliness for seniors every year. These are the results for 2024:
| Tax-Friendly States For Retirees | Not Tax Friendly For Retirees |
| Alaska | California |
| Florida | Connecticut |
| Georgia | Maine |
| Mississippi | Minnesota |
| Nevada | Nebraska |
SmartAsset: Best States to Retire for Taxes
WalletHub: Best and Worst States to Retire in 2024
WalletHub analyzed all 50 states using 46 key indicators of retirement-friendliness, covering everything from financial factors like tax rates and cost of living to access to quality healthcare and recreational activities. Here are the main findings:
| Best States To Retire | Worst States To Retire |
| Florida | Kentucky |
| Colorado | New Jersey |
| Virginia | Mississippi |
| Delaware | Rhode Island |
| Wyoming | Oklahoma |
Best and Worst States to Retire (2024)
U.S. News & World Report: 2025 Best Places to Retire
U.S. News ranked 150 U.S. cities based on factors important to retirees, such as happiness, affordable housing, taxes, and healthcare quality. Here are the best and worst states on the list:
| Best Places to Retire | Worst Places to Retire |
| Florida (Naples) | Puerto Rico (San Juan) |
| Virginia (Virginia Beach) | Connecticut (Hartford) |
| New York (New York City) | Michigan (Detroit) |
| Idaho (Boise) | Louisiana (New Orleans) |
| North Carolina (Raleigh) | Missouri (St. Louis) |
U.S. News & World Report: 2025 Best Places to Retire
Remember, these rankings are general and might not match your personal needs or situation. Up next, we’ll break down the key things to consider when choosing the right place to call home in retirement.
Key Factors to Evaluate Retirement States
To assess the best and worst states to retire in, you need to know where to look. Several factors impact the overall quality of life in retirement, but not all have the same significance. Below, we have gathered those most retirement advisors recommend to retirees to give you direction. Use them wisely to start building a clearer picture of what you’re looking for in a place to enjoy your life after work fully.
The State Tax Policies
Taxes are the backbone of retirement finances, so they should be high on your relocation checklist. The taxation aspects you should consider as a retiree are:
- No state income tax: Retaining the most possible income is neuralgic for most people in retirement. States like Florida, Texas, and Nevada do not impose a state income tax on residents.
- Exemption of Social Security benefits: Search for states that do not tax your Social Security benefits. Florida and Nevada are two of the states that offer this tax provision.
- Exemption or low tax on retirement income: States like Mississippi and Pennsylvania give tax breaks on retirement income, like pensions and money taken from retirement accounts.
- Low property taxes: Low property taxes will reduce your overall cost of homeownership if you are entering retirement. States with relatively low property taxes include Hawaii, Alabama, and South Carolina.
- Low sales taxes: Deciding to move to Delaware and Oregon will mean skipping state sales tax altogether, which means more purchase power for seniors.
- No estate or inheritance taxes: States like Florida and Arizona don’t have estate or inheritance taxes, which is great news for retirees who plan to pass their assets on to loved ones.
- Tax credits or deductions for seniors: Several states are known for offering senior-designed tax credits or deductions, including homestead exemptions (Texas), property tax exemptions (Florida), and school tax relieves (New York).
Remember, as crucial as taxes are, they’re not the only piece of the retirement puzzle. So, if you find yourself liking a state with tax provisions that are not as advantageous as you may like, you may want to consider other criteria, such as access to healthcare, climate, proximity to family, and overall quality of life, before ruling it out entirely outright.
Research Tip: State tax department websites are your go-to resources for official and up-to-date information. Many states have sections specifically for senior tax benefits, such as exemptions or credits. Search for “[Your preferred state] Department of Revenue” to find the official site. Search keywords like “senior tax relief” or “retirement tax benefits.” For personalized advice, consult a CPA or financial planner specializing in retirement.
The Cost of Living
Retirement can bring financial challenges. According to the National Council on Aging (NCOA), over 17 million Americans aged 65 and older live at or near 200% of the federal poverty line. This makes the cost of living a crucial factor when choosing where to retire.
The cost of living is the total amount required to meet basic expenses in a particular area.
The cost of daily necessities, from housing and healthcare to groceries and transportation, varies greatly from place to place. For example, Alabama, West Virginia, and Mississippi often rank among the top states for budget-conscious retirees.
High-net-worth retirees moving to Hawaii and California will enjoy a high quality of life with plenty of perks. Hawaii is stunning with its landscapes, beaches, and laid-back vibes, but it comes with the highest price tag in the country. On the other hand, California offers endless amenities, rich culture and entertainment, and mild weather, making it another spot to consider—if you can afford its cost of living.
| State | Cost of Living Index | % Lower /Higher Than US |
| Alabama | 84.1 | 15.9% lower |
| West Virginia | 79.4 | 20.6% lower |
| Mississippi | 78.7 | 21.3% lower |
| Hawaii | 165.7 | 65.7% higher |
| California | 149.9 | 49.9% higher |
Data: bestplaces.net
Research Tip: Use cost of living calculators to get a side-by-side comparison of essential expenses like housing, healthcare, and taxes in different cities and/or states.
Healthcare Access and Quality
With 20% of the U.S. population projected to be over 65 by 2050, citing data from the U.S. Census Bureau, educating oneself about quality healthcare before retirement is a must. Before choosing the home base for your freedom years, take into account the following criteria:
- The healthcare providers available
- Access to senior-specific services
- The local Medicare and Medicaid policies
- How healthcare ranks in quality
- Availability of emergency services
- Research local hospitals’ ratings and rankings
- The best possible public health rankings
- Long-term care facilities
- Prescription drug coverage and costs
- Healthcare options and coverage for chronic conditions
- Veterans’ healthcare services
- Availability of Mental health services
Several online sources cite Massachusetts and Minnesota as two of the country’s best states for medical services. According to U.S. News & World Report, Massachusetts is home to several top-ranked hospitals, including Massachusetts General Hospital and Brigham and Women’s Hospital, both located in Boston.
Minnesota also stands out in healthcare, combining top-tier medical institutions like the Mayo Clinic Rochester and a strong focus on public health. States that rank lower in healthcare quality and access include Mississippi and West Virginia.
Research Tip: Focus on states with highly ranked hospitals and senior-friendly healthcare programs. Use tools like U.S. News Best Hospitals to find states with top medical facilities and Commonwealth Fund Rankings for overall healthcare performance. Prioritize areas near renowned teaching hospitals or specialized care centers.
Weather and Climate
The weather in your chosen state will be more than just a backdrop—it shapes how you live, feel, and thrive. As we age, our relationship with the climate shifts. That winter wonderland you once loved might now feel too icy –even compromising your mental health. Or maybe the heat that never bothered you now feels stifling and exhausting. Choosing a place with weather that fits your evolving needs is like finding a perfect balance—it can make all the difference in crafting a retirement that feels just right.
Some retirees dream of warm, sunny weather year-round, while others prefer the charm of changing seasons. Florida and Arizona are top destinations among sunseekers and snowbirds. Florida’s golden beaches and warm, breezy weather invite you to hit the outdoors, while Arizona’s dry heat and striking desert landscapes make every day feel like a warm escape, allowing you to leave joint pain in the past.
Conversely, Vermont and Colorado bring the charm of changing seasons to the table. Vermont enchants with its fiery fall foliage and postcard-perfect winters, while Colorado’s mix of mild summers and snowy peaks offers endless adventures all year long. Seasonal living brings variety, but winters might mean extra layers—and heating bills.
Weather-wise, another consideration is the risk of extreme weather—sunny states like Florida, Texas, or California that seem ideal at first sight might experience hurricanes, earthquakes, or wildfires.
Research Tip: Check out online climate comparison tools for a clear picture of year-round weather in the states you are interested in. Look at average temperatures, humidity, and how the seasons change to make sure the climate matches your lifestyle and supports your health. Tools to Use: BestPlaces.net, National Weather Service Climate Data, Climate.gov.
Lifestyle and Amenities
Picking the perfect state for retirement is like being a kid in a candy store—so many exciting options to create the life you’ve always imagined. It’s your time to live exactly how you want, so focus on places that match your vibe and offer everything you need to make your golden years truly golden. Consider states where you can:
- Stay Engaged and Active: Imagine starting your day with a morning walk through scenic parks, followed by a swim or a round of golf with friends. Access to recreational centers, cultural venues, and fitness facilities will help you stay healthy and energized—both physically and mentally.
- Build Meaningful Connections: Retirement is even better when shared with others. Communities with amenities like senior clubs, local events, and art or music festivals will facilitate you meeting new people and staying socially active.
- Have Convenience at Your Fingertips: Living near shopping, dining, and entertainment adds ease to everyday life. Go on a quick coffee run or catch a play at the nearby theater. Having nearby amenities makes errands smoother and more enjoyable for leisure, letting you focus on what truly matters.
Retirement isn’t just about money and concerns—it’s about enjoying life. Here’s what you should consider:
Urban vs. Rural Living
If you’re a perennial urbanite, cities like New York buzz with energy and have a never-ending supply of world-class arts, entertainment, and dining opportunities. If you flourish on social connections and cultural experiences, urban living provides unmatched variety and convenience. However, city life often comes with a faster pace and a higher price tag, so it’s important to weigh the trade-offs.
Is peace and quiet more up your alley? Life in Tennessee comes with all the appeal of country living: slower pace, lower living costs, and a welcoming, close-knit community. Rural life is perfect for those seeking serenity and connection with nature, though it may mean fewer amenities or longer drives to healthcare and other commodities.
Availability of Cultural, Recreational, and Social Activities
Cultural Activities
Culturally speaking, every state vibes at its rhythm, so let your preferences guide you here. Whether it’s Louisiana’s jazz festivals, New Mexico’s Indian markets, or Massachusetts’s walk through history on the Freedom Trail, every state has a color of its own; you just have to jump in and turn your life into a work of art.
Recreational Options
Are you a mountain, water, or open-field adventurer? No matter your preference –or age, Colorado is a haven for outdoor enthusiasts inviting you to hike, ski, or take in the views. In contrast, Florida’s sunny shores are perfect for kayaking or paddleboarding. If fishing is your happy place? Minnesota’s thousands of lakes wait with peaceful retreats and plenty of catches.
Social Opportunities
Social butterflies will always find their ‘garden.’ Each state has its way of bringing people together. In California, it’s probably sipping wine at a vineyard event or joining a yoga class by the sea. Texas turns up the charm with line-dancing nights and barbecue cook-offs with neighbors or friends. Communities also host book clubs, craft workshops, and volunteer programs for retirees to connect.
Research Tip: Consider what truly brings you joy. List your must-haves and use online tools to compare amenities in different areas. More personalized insights will come from visiting the top states on your list and experiencing the community firsthand.
Family Proximity and Support Networks
When deciding where to relocate in retirement, distance from your immediate support networks is a crucial factor to weigh. If you are on your own, with no family, dependents, or close friends, you have more freedom to pick your new home sweet home, but if you value being near children, grandchildren, your church community, or lifelong friends, then moving cross-country is most likely not the right path for your retirement relocation.
Your tribe provides emotional connection, practical help, a sense of purpose, and some practical advantages. From assistance with home maintenance to transportation to medical appointments, having trusted people nearby will give you (and them!) peace of mind, especially as mobility or health concerns arise.
If you move to a state far from family, making new friends and connections will keep you away from isolation, a common issue among older adults who lack regular social interaction or assistance.
Research Tip: Have you decided to stay near your loved ones? Keep searching for homes in areas within a reasonable distance from them. On the flip side, if you’re relocating far from familiar faces, research senior-friendly communities, clubs, or volunteer opportunities in your new area to build a strong social bond.
Housing Offerings
By 2035, the U.S. will hit a historic milestone: for the first time, there will be more people over 65 than under 18. Yet, despite this demographic shift, the country faces a major challenge—recent census data shows that only 40% of homes are equipped to meet the basic needs of older adults, leaving many without the accessible housing they’ll need to age comfortably.
As you age, a large single-family home wouldn’t fit your needs anymore, and you may want something with lower maintenance, like a condo, a townhouse, or even a tiny house or a modular home. If that’s your case, look for places offering benefits for homebuyers transitioning into retirement.
Consider working alongside a specialized real estate agent to make intelligent purchase decisions. But if you’re thinking long-term, you may want to consider moving to a state with an expanded scope of senior living options.
That being said, while you do your research on the best and worst states to retire in, see if any of the following housing options are to be found in the local real estate market:
Age-Restricted Communities
Commonly known as 55+ communities, these living alternatives are designed exclusively for active adults. Real estate options in over-55 neighborhoods include single-family homes, townhomes, or condos. Amenities like clubhouses, pools, fitness centers, and social events are often included in the price tag seniors pay to live here. Age-restricted communities are commonly found in Florida, Arizona, and North Carolina.
Assisted Living Facilities
This senior living option refers to housing with built-in care services for seniors who need help with day-to-day tasks. It comes in the form of private or semi-private rooms or apartments, as well as amenities like dining services and on-site medical staff. Assisted living is praised in states like Minnesota and Washington.
Continuing Care Retirement Communities (CCRCs)
CCRCs are communities providing varied housing options, from independent living to skilled nursing care, all within one location. This option is for adults looking to “age in place” without needing to move as their care needs evolve. Some of the country’s best CCRCs are in California, Texas, and Pennsylvania.
Senior Co-Housing
Senior co-housing is a unique way of living that blends private living areas with shared community spaces. It has a strong focus on community living, prioritizes affordability, and creates strong ties among residents. Oregon and California lead in innovative co-housing models for the elderly.
States People Are Moving To and From
When planning your move, having data about what states people are flocking to and which are they leaving can be helpful. States gaining new residents often have thriving communities, more stable housing markets, and an influx of resources, making settling in and feeling at home a no-brainer. On the other hand, states with high out-migration may be indicating the presence of challenges like rising living costs or reduced availability of services, which could impact your quality of life as a person 65+ or older.
Without further ado, see below a table with the ten states attracting new residents and the ten experiencing population declines:
States With Net Migration Gains and Losses
| States with Highest Net Migration Gains | Net Migration | States with Highest Net Migration Losses | Net Migration |
| Florida | +170,000 | New York | -200,000 |
| Texas | +97,518 | California | -185,000 |
| Arizona | +94,000 | Illinois | -114,000 |
| North Carolina | +79,000 | New Jersey | -49,000 |
| South Carolina | +59,000 | Massachusetts | -48,000 |
| Tennessee | +57,000 | Louisiana | -30,000 |
| Georgia | +50,000 | Maryland | -29,000 |
| Idaho | +48,000 | Pennsylvania | -28,000 |
| Nevada | +47,000 | Michigan | -27,000 |
| Colorado | +44,000 | Ohio | -26,000 |
Source: Texas A&M University System – State-to-State Migration Trends
How to Determine Best and Worst States For You
Every year, new listicles are published about the best and worst states to retire in, but the truth is that choosing a home requires a personalized approach and tons of research and dedication. Your priorities look like nobody else’s, so take your time and use these tips for your due diligence:
Tip 1: Use Online Calculators
Find reliable online tools like calculators to compare cost-of-living and tax implications nationwide. Online calculators evaluate and compare housing costs, healthcare expenses, and tax savings to understand how far your retirement income will stretch in different locations.
Tip 2: Create a Checklist of Must-Haves
Identify what matters most to you. Is it quality healthcare? Or maybe proximity to family and friends? Or is it cultural or recreational amenities? Perhaps a specific climate trait? Having your non-negotiables and deal breakers clear will help narrow your options.
Tip 3: Have a Retirement Plan
Before committing to a new state and then to a new city or town, ensure your financial and lifestyle plans align with your desired destination. Your retirement plan should account for long-term goals, like aging in place or transitioning to assisted living if necessary.
Tip 4: Trial Run Living in Your Preferred State
Before permanently moving, consider giving it a try first. Some retirement communities and senior living facilities nationwide roll out the welcome mat with trial stays or short-term rentals, allowing potential residents to immerse themselves in the lifestyle before making a big move. To take advantage of this, you should first:
- Contact the local community directly: Contact the senior living communities on your list directly or check their websites for trial stay programs.
- Use senior living directories: Several senior-focus websites like A Place for Mom, SeniorHousingNet, and RetirementLiving.com often detail communities offering short-term or trial stays.
- Work with a real estate agent: Specialized agents can connect you with age-restricted or senior living communities offering these options.
Tip 5: Seek Expert Advice
Professional guidance makes all the difference when evaluating the best and worst states in which to retire. Look for the help of:
- Financial Planners: Specialists in retirement planning can help you analyze tax implications, budget for your lifestyle, and optimize your retirement savings for a specific state.
- Real Estate Agents: Agents with experience in retirement relocations can identify housing options tailored to your needs, whether you’re after 55+ communities, assisted living facilities, or downsizing in retirement.
Conclusion
Retirement isn’t a one-size-fits-all journey, and there’s no universal “best” or “worst” state to settle in. The ideal spot for your golden years depends on your unique priorities—be it affordability, climate preferences, or proximity to your loved ones. Use the tools and insights we shared in this post to guide your decision, list a trusted real estate professional to help you, and remember: this is your time to craft the life you’ve always desired. Good luck!
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