The 5 Best and 5 Worst States for Retirement
By SalaryFor.com – real salaries for all professions
Retirement planning has become more complex than ever. Costs vary dramatically by state, healthcare access is uneven, and lifestyle quality can shift from excellent to difficult depending on where you live. Some states offer low taxes, affordable housing, and strong medical networks. Others quietly drain retirees through high costs, extreme weather, or limited healthcare capacity.
This ranking reflects current conditions across five core factors:
- Cost of living
- Healthcare access and quality
- Taxes on retirement income
- Housing affordability
- Lifestyle, climate, and safety
Below are the five best and five worst states for retirement in 2026 — plus runner‑up sections for states that didn’t make the top or bottom lists but still deserve attention.
The 5 Best States for Retirement
These states offer a strong combination of affordability, healthcare access, tax advantages, and quality of life.
1. Florida
Florida remains the gold standard for retirement.
Why it ranks #1:
- No state income tax
- Strong medical infrastructure
- Warm weather year‑round
- Large retiree‑friendly communities
- Lower cost of living than many coastal states
Florida’s scale makes it uniquely supportive of retirees.
2. Tennessee
Tennessee has quietly become one of the fastest‑growing retirement destinations.
Why it ranks #2:
- No tax on retirement income
- Affordable housing
- Mild climate
- Strong hospital systems in Knoxville, Nashville, and Chattanooga
A top choice for retirees seeking affordability without sacrificing quality.
3. North Carolina
North Carolina offers mild seasons and access to both mountains and beaches.
Why it ranks #3:
- Moderate taxes
- Excellent healthcare systems
- Reasonable home prices
- High quality of life in Asheville, Raleigh, and Wilmington
A balanced, comfortable retirement environment.
4. Arizona
Arizona continues to attract retirees seeking warm weather and predictable costs.
Why it ranks #4:
- Low property taxes
- Dry climate ideal for many older adults
- Strong medical networks
- Large retirement communities
Summer heat is the main drawback, but affordability keeps Arizona high on the list.
5. Georgia
Georgia is one of the most underrated retirement states.
Why it ranks #5:
- Very generous tax exemptions for retirees
- Affordable housing
- Mild climate
- Strong healthcare access in Atlanta, Savannah, and Augusta
A strong mix of affordability and comfort.
Runner‑Up: Additional Best States for Retirement
These states didn’t make the top five but still offer strong advantages for retirees.
South Carolina
South Carolina is increasingly popular among retirees seeking coastal living without Florida‑level growth.
Why it’s a runner‑up best state:
- Low property taxes
- Mild climate
- Affordable coastal towns
- Generous retirement tax exemptions
Alabama
Alabama offers some of the lowest costs in the country.
Strengths:
- Very low housing costs
- Low taxes
- Warm weather
- Quiet, slower‑paced lifestyle
Virginia
Virginia is ideal for retirees who want access to top‑tier healthcare.
Strengths:
- Excellent medical systems
- Moderate taxes
- Mild climate in central and coastal regions
- Strong safety and infrastructure
Texas
Texas offers affordability and variety.
Strengths:
- No state income tax
- Large medical networks
- Affordable housing in many regions
- Warm climate
New Mexico
New Mexico is a hidden gem for retirees seeking beauty and affordability.
Strengths:
- Low cost of living
- Mild climate
- Scenic landscapes
- Strong cultural and recreational opportunities
The 5 Worst States for Retirement
These states struggle with high costs, tax burdens, weather risks, or limited healthcare access.
1. New York
New York is the most challenging state for retirees.
Why it ranks #1 worst:
- Extremely high taxes
- High cost of living
- Expensive housing
- Harsh winters
- Limited affordability outside select upstate areas
Healthcare is strong, but costs overwhelm the benefits.
2. California
California offers beauty — but at a steep price.
Why it ranks #2 worst:
- Very high housing costs
- High taxes
- Rising insurance premiums
- Wildfire and weather risks
- Increasing cost of everyday living
Retirees often leave California for more affordable states.
3. Illinois
Illinois struggles with affordability and tax pressure.
Why it ranks #3 worst:
- High property taxes
- State budget instability
- Rising insurance and utility costs
- Limited affordability in major metro areas
Healthcare is strong, but costs overshadow the benefits.
4. New Jersey
New Jersey is one of the most expensive states in the country.
Why it ranks #4 worst:
- Extremely high property taxes
- High cost of living
- Expensive healthcare
- Dense population and congestion
Retirees often move to Pennsylvania or Delaware for relief.
5. Massachusetts
Massachusetts offers excellent healthcare — but at a price.
Why it ranks #5 worst:
- Very high housing costs
- High taxes
- Harsh winters
- Expensive long‑term care options
Retirees who stay do so for family or medical access, not affordability.
Runner‑Up: Additional Worst States for Retirement
These states didn’t make the bottom five but still pose significant challenges for retirees.
Oregon
Oregon is beautiful — but expensive and increasingly difficult for retirees.
Why Oregon is a runner‑up worst state:
- High housing costs
- Rising property taxes
- Increasing insurance premiums
- Expensive everyday living
- Limited affordability outside select metro areas
- Weather patterns that can be challenging for older adults
Connecticut
Strong healthcare but steep costs.
Challenges:
- Very high property taxes
- High cost of living
- Expensive long‑term care
- Cold winters
Maryland
Maryland is a mixed bag for retirees.
Challenges:
- High taxes
- Expensive housing
- Congestion and cost pressure near major metro areas
Washington
Washington is increasingly expensive for retirees.
Challenges:
- High housing costs
- Rising insurance premiums
- No state income tax, but high sales and property taxes
- Expensive healthcare in major cities
Rhode Island
Small state, big costs.
Challenges:
- High taxes
- Expensive housing
- Limited affordability outside a few towns
Related Reading
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In: Retirement · Tagged with: best states retirement
