Choosing where to retire is one of the most important financial decisions you’ll make. In 2026, rising healthcare costs, housing expenses, and inflation continue to make some states more retirement-friendly than others. Retirees are no longer just looking for sunshine and golf courses—they’re focusing on affordability, tax advantages, healthcare quality, and access to services.
This guide compares the best states to retire in 2026 based on a combination of factors that matter most: taxes, healthcare access, cost of living, housing affordability, and general quality of life for older adults.
Table of Contents
Top Factors to Consider
Before choosing a retirement destination, here are key metrics to evaluate:
- State Income Tax on Retirement Income: Does the state tax Social Security, pensions, or 401(k) withdrawals?
- Sales and Property Taxes: High property and sales taxes can erode fixed retirement income.
- Cost of Living: Includes housing, groceries, transportation, and utility expenses.
- Healthcare Access: Proximity to hospitals, specialists, and Medicare-friendly providers.
- Climate and Safety: Moderate weather, low crime, and senior services enhance retirement life.
Best States to Retire in 2026
1. Florida
- No state income tax
- No tax on Social Security, pensions, or IRA withdrawals
- Abundant 55+ communities and healthcare access
- Mild winters and strong infrastructure for retirees
- Downside: High insurance premiums (home, flood) in coastal areas
2. Tennessee
- No income tax on wages or retirement income
- Low cost of living and affordable housing
- Top-notch medical centers in cities like Nashville and Memphis
- Senior-friendly local tax policies
- Downside: Limited public transportation outside major cities
3. Wyoming
- No state income tax
- Low property taxes and minimal sales tax
- Very low crime rate and scenic natural beauty
- Medicare-friendly health systems in urban pockets
- Downside: Cold winters and limited cultural amenities
4. Pennsylvania
- No tax on Social Security, pensions, or retirement savings
- Excellent hospitals and specialty clinics (especially in Philadelphia and Pittsburgh)
- Moderate housing costs in small towns and rural areas
- Strong senior-focused programs and property tax relief for retirees
- Downside: Cold winters and older housing stock
5. South Dakota
- No income tax
- Low property taxes and healthcare costs
- High marks for overall well-being and quality of life
- Very tax-friendly for retirees
- Downside: Harsh winters and rural isolation in some areas
6. North Carolina
- Mild climate and moderate tax environment
- Low property taxes and growing retirement communities
- Quality hospitals (Duke, UNC) and Medicare accessibility
- Affordable living in cities like Asheville and Wilmington
- Downside: State taxes some retirement income (e.g., IRA withdrawals)
7. Texas
- No income tax
- Warm weather and strong housing market
- Growing healthcare options and senior living communities
- Large retiree population
- Downside: High property taxes and growing urban congestion
Honorable Mentions
- Arizona – Warm climate, excellent healthcare, but higher housing prices.
- Georgia – Tax breaks for retirees, low property taxes, strong healthcare.
- Nevada – No income tax and good weather, but rising housing and water issues.
States Retirees Often Avoid (in 2026)
- California – High taxes, expensive housing, and overall high cost of living.
- New York – Heavy state and local taxes; costly real estate; good healthcare access.
- Illinois – High property taxes and budget concerns despite tax breaks for retirees.
- Connecticut – High cost of living, high taxes on pensions and income.
Frequently Asked Questions (FAQs)
1. Do all states tax Social Security benefits?
No. As of 2026, most states do not tax Social Security income. A few (like Colorado, Montana, and Utah) apply limited taxation based on income level.
2. Which states have the best healthcare access for seniors?
States like Massachusetts, Minnesota, Pennsylvania, and Florida offer top-tier healthcare systems and Medicare-friendly hospitals. Rankings often reflect access to specialists and low readmission rates.
3. What states offer property tax relief for seniors?
States like Pennsylvania, Georgia, and South Carolina offer senior exemptions or homestead programs that reduce property taxes for older residents.
4. How can I estimate my retirement tax burden by state?
Use online tax calculators or consult with a tax advisor who understands state-specific retirement tax rules. Consider income tax, property tax, and sales tax together.
5. What states are best for retirees with a low fixed income?
Tennessee, Mississippi, West Virginia, and Arkansas have a low cost of living and do not tax Social Security benefits, making them ideal for retirees on smaller budgets.
6. Can I move to another state and still receive Social Security?
Yes. Social Security is a federal benefit and follows you across all 50 states. Just make sure the SSA has your updated address and banking information.