You’ve worked enough to achieve a comfortable retirement, which is great news. However, while retirement is the perfect time to relax, certain things still need to be considered, such as living costs. This is why some retirees choose to move to other states.
If you’re curious about which are the best states for retirement in the U.S., you’re in luck. In no particular order, let’s take a look at our 21 favorites.
Best States for Retirement
Tennessee
Tennessee has a very low tax burden, which is especially attractive to retirees. Living costs also drop with lower tax costs, allowing its residents to survive on less. So in terms of affordability, Tennessee may well be in first place.
People who love country music, blues, and rock and roll will love Tennessee. Many decades ago in Memphis, Elvis Presley laid the foundations for rockabilly – one of the earliest forms of rock and roll. Today, his mansion, Graceland, stands as a museum devoted to all things Elvis.
Overall, Tennessee has more than just low living costs; it is home to a rich cultural inheritance of music, literature, and more.
Wyoming
Wyoming doesn’t tax retirement income, which will allow anyone to retire here comfortably. In addition, the state is relatively isolated, and neighbors are often farther away. This makes it an excellent choice for those who want a quiet, peaceful life after their working years.
Wyoming is an excellent retirement state with a low crime rate, 60% lower than the national average rate. Compared to many locations with higher ratings, Wyoming is much safer.
Compared to other states, the trains in Wyoming are highly effective and maintained well. What’s more, the lower traffic tends to result in higher speed limits – perfect for getting around.
New Hampshire
Many people cite New Hampshire as an excellent state for retirement. This comes as little surprise, as the state is incredibly safe from crime. In addition, the state’s healthcare rating is above average, with a longer life expectancy and medical standards suitable for senior citizens.
Living in New Hampshire is very affordable because it has no sales tax. The low poverty rate in the state is a testament to this.
The only main disadvantage to living in New Hampshire is the weather and location, but residents highly regard most other aspects.
Idaho
Idaho is famous for potatoes, but many people don’t realize how many people find it a wonderful place to settle down. Like New Hampshire, Idaho’s crime rates are lower than the national average, even in the larger cities. Boise also employs large numbers of police personnel to keep civilians safe.
However, retirees may elect to spend time traveling, and Idaho has many unique tourist attractions all over the state. The world’s largest potato chip, a giant potato sculpture, and ghost towns are only the tip of the iceberg.
North Dakota
North Dakota residents enjoy the luxury of paying no state income taxes on Social Security retirement benefits if their federal AGI goes beyond specific limits. The sales and property tax rates are also close to the national average.
North Dakota is also a very isolated state, but the economy is strong, and unemployment numbers are low. The living cost in the state is the 28th lowest in the U.S., and homes aren’t costly compared to other states.
The climate in North Dakota is semi-arid, and people here are accustomed to tornadoes, blizzards, and flooding. Even so, the air is very clean, especially in Fargo.
Maine
The major pros of retiring in Maine are the low living costs, affordable housing prices, and incredible healthcare. In addition, everything from transportation to utilities is cheaper than the national average, and both buying and renting are viable options.
As the state with the 14th best healthcare in the U.S., the cost of these services is surprisingly only 0.1% higher than the U.S. average.
If you enjoy beautiful scenery, feel free to visit the forests and national parks.
Montana
Even though Montana isn’t the best in the affordability department, retiring and settling down here has other benefits. Many people believe that Montana is always cold, but that isn’t the case. The state has a diverse climate that varies from region to region.
Taxes in Montana are decent for retirees. Single filers who earn less than $25,000 can apply for all Social Security retirement income deducted.
Those who enjoy a tasty steak may find retiring in Montana the best decision they make. The state is famous for its magnificent steaks, found in Sir Scott’s Oasis in Manhattan.
Nebraska
This state isn’t the first that comes to mind for retirement, as residents know retirees don’t get any exemptions or deductions. However, military retirement income is the odd one out, being eligible for both. So if you’re a retired member of the military, you can consider settling down in Nebraska.
While property taxes in Nebraska are high, the median home cost is incredibly low, below $200,000.
Nebraska is also an archaeological haven, home to the largest mammoth fossil ever found. Sports are also popular in the state, and there are always events fans can attend.
Iowa
Retirees who depend on Social Security for income will be overjoyed to hear that Iowa doesn’t tax any of it, just as other retirement income sources are also exempt. The cost of living is already low, but Iowa is particularly famous for its low housing costs. It’s around 40% lower than the national average.
The crime rate in Iowa is also relatively low, and many residents don’t feel the need to invest in security systems.
Iowa experiences all four seasons throughout the year, and it’s best to stay prepared for extreme cold. Unfortunately, the state also gets a few tornadoes every year.
Missouri
Missouri has it all for retirees. Low living and housing costs are good perks, but the state is also full of things to do. For some, the quiet life isn’t for them, and they’d prefer to have fun activities around the corner.
Other than the six national parks, Missouri has almost 100 state parks. As a result, the state makes hunting and fishing more accessible than many other Midwest locations.
Florida
The Sunshine State is a prime retiree haven. Florida’s number of outdoor activities is incredible, with surfing, camping, boating, and more available to enthusiasts.
Living in Florida is also entirely affordable, and its residents find it possible to save on bills while still enjoying its arts and culture.
While Florida has big cities, it also has country towns. So there’s always a place for everyone in Florida.
Florida’s tax rates are also very low, especially with zero income taxes.
South Dakota
South Dakota is a happy state, with most residents reporting they enjoy living in their home state. Aside from the lower living cost, there’s also no state income tax in South Dakota. There are even other tax benefits you can try to take advantage of.
Even though South Dakota has large cities, they don’t suffer from congestion, as the state has excellent transportation methods. Owning a car here is also very affordable.
As a state with a low population density, it’s natural that people who want some peace choose to retire to South Dakota.
Alaska
The beautiful state of Alaska may have a lower population, but that doesn’t stop people from retiring and settling down here. In fact, there are no state income or sales taxes at all. While cities can charge the latter, many don’t.
The Permanent Fund Dividend also gives residents a small amount of money annually. It comes from oil revenues, and every person can receive it.
Thanks to its abundant fish and wild game supplies, Alaska is also very healthy. During the summer, you can even pick fresh berries.
Georgia
Georgia is often referred to as the Peach State, but many people know it for friendly neighborhoods, fantastic food, and prominent sports culture. In addition, the living costs are meager, as Georgia is consistently among the top 10 most affordable states.
Fans of Coca-Cola will love Atlanta, Georgia, which is the beverage’s birthplace. The World of Coke is the best place to taste unique flavors found in few other places.
Property taxes in Georgia are also very fair, slightly below the national average.
Massachusetts
Massachusetts has a rich history, as Plymouth was one of the first settlements of America. The Pilgrims chose a superb location, as the state has many beautiful places that anyone will fall in love with.
There are many healthcare options in Massachusetts, thanks to its robust economy. While the living cost is higher, it’s worth noting that quality healthcare benefits offset the disadvantages.
The outdoors in Massachusetts are highly accessible all year round. You can enjoy activities such as fishing, boating, and sunbathing. The weather tends to be pleasant, even in the winter.
Arizona
Retirees find Arizona an excellent state to settle down in, especially since it doesn’t tax Social Security checks. In addition, some places in the state are incredibly affordable to live in, especially if you live closer to California.
Near Phoenix, there are more than 200 golf courses – heaven for the golf enthusiast. There are also others throughout the state. Two of them are world-class, allowing fans to watch the latest competitions at home.
Arizonans also enjoy other sports such as baseball, football, and more. So there’s always a sport for everyone to enjoy throughout the year.
Ohio
Ohio has some very high-quality cities, but their living costs aren’t too high either, as the state consistently boasts low living costs. Staying in the countryside is also a viable option, and there’s the additional benefit of natural beauty in doing so. Ohio is rife with outdoor recreation opportunities.
There are many reputable companies in Ohio that retirees may be interested in investing in as an additional form of income.
Even the houses in Ohio are pretty affordable, with the median value being 40% lower than the U.S. average.
Kentucky
Many retirees discover that Kentucky is a relatively affordable place to stay. They enjoy reasonable tax rates, allowing them to keep more of their money. There are also lots of amazing natural scenes to visit.
The median house cost is about 40% lower than the national average, making it an exceptionally viable option for retirees. Even renting an apartment is a great alternative.
Food is a big thing in Kentucky. Of course, being the birthplace of KFC, fried chicken is its most famous offering, but cornbread and other dishes are not far behind.
Utah
Utah has a rich history, making it an excellent choice for the history buff. In addition, Utah’s cost of living is very affordable, especially in some rural or country areas.
The Utahan outdoors is breathtaking, so you’re sure to find many beautiful places to visit here.
The crime rate is also very low, making it a perfect retirement spot.
New Jersey
New Jersey’s taxes are relatively friendly to retirees due to exempt Social Security checks. In addition, any retirement accounts that earn below $65,000 will also enjoy lower tax rates.
The state is also safe, as its crime rates are far below the national average.
New Jersey has many museums because arts and culture are deeply entrenched here. In addition, you can visit the State Museum and Planetarium in Trenton. All of these locations are excellent for day trips.
Indiana
Indiana has everything you’d want in a state. Pleasant weather, friendly neighbors, and a low cost of living are music to retirees’ ears. But, thanks to its lower crime rates, the state is also great in terms of safety.
Owning property in Indiana is also viable for retirees, as the housing costs are low. The average property tax is ranked among the top 10 most affordable in the country.
Consider These States
Our list of best places to retire in the U.S. isn’t exhaustive. However, as every state is unique and has its own attractions, it’s best to sit down and give it some thought before picking one. Investing a little extra time in deliberation is always beneficial.