11 Best States for Retirees To Retire in 2025

Cost of living, taxes, and healthcare are probably at the top of your mind if you’re thinking of retirement. 

A robust retirement financial plan isn’t enough on its own. You must find the most suitable environment to thrive in and maximize your savings long after you stop working. 

With 50 states in the US, choosing the best place to live after retirement can be challenging. It’s even harder to leave your home state and adapt to a new community a thousand miles away.

However, the important question is, which state offers the best conditions, and which should you settle in?

This article dives into the best states for retirees. Whether you’re concerned about healthcare, climate, or social security benefits, we’ve got you covered. We’ll also talk about the worst states to retire to and the factors to consider when choosing a state.

The Best States for Retirees To Retire

We’ve narrowed the search from 50 to 11 states to help you in your quest to find the best place to live after retirement. 

Many retirees opt to go abroad, where the dollar has a higher purchasing power, but these 11 states allow you to maximize your money while living near your family and friends. 

1. Florida 

Florida is one of the most popular destinations for retirees in the US for several reasons. 

Firstly, Florida doesn’t impose a state income tax, so you can significantly save money over time compared to other states. 

Another factor that makes Florida attractive is the year-round warm climate. Say no to harsh winters, which may affect your mental and physical health.

The large population of seniors in Florida has improved the state’s affordability and healthcare quality.

Whether you require round-the-clock care or simply need to monitor a few symptoms, the Sunshine State has qualified professionals at your beck and call. 

2. Delaware 

If you search for the best states for retirees in the US, chances are you’ll come across many sites singing Delaware’s praises. 

Delaware is a popular choice, especially if you want to save money on taxes. Delaware doesn’t have inheritance and estate taxes, and it also doesn’t have Social Security income taxes. 

While tax exemptions are attractive, Delaware’s cost of living is relatively lower than that of other states in the US. You’ll likely find affordable housing whether you choose to settle in urban or smaller towns. 

Plus, you can enjoy proximity to major cities like Washington without experiencing the high costs of living associated with them.  

Another advantage of Delaware over other states is its warm climate. It is an excellent place to enjoy all four seasons without experiencing harsh weather. 

3. Texas 

Are you into the vibrant cowboy lifestyle? If so, consider Lone Star State.

Texas, known for its rich Western culture, is an excellent place to spend your golden years without quickly draining your finances. 

The state doesn’t charge a state income tax, allowing you to hold on to your finances, especially if you live on a fixed income after retirement.

Texas also offers relatively affordable housing options compared to other states. You don’t necessarily have to settle in the rural areas to enjoy low living costs. Life in larger cities like Dallas is also relatively affordable. 

Texas also offers state-of-the-art healthcare, with Texas Medical Center being among the most prominent medical complexes in the world. 

4. Tennessee 

Tennessee is worth considering if you want to enjoy low living costs without compromising cultural inclinations.

The state offers a rich cultural history, diverse cuisine, and distinct music, making it an excellent place to thrive if you want to focus on these things.

In addition, Tennessee boasts a favorable climate, a robust healthcare system, and several tax exemptions for seniors.    

5. North Carolina 

Are you looking for a state with senior communities you can fit right into? Look no further than North Carolina. 

Edenton, Carteret County, and Tarboro are just a few areas where you can appreciate a deep sense of community with friendly neighbors and senior community programs while savoring the diverse scenery.

North Carolina offers lower costs of living, mainly because housing is a tard lower than the national average. 

You’ll also have access to robust healthcare in state-of-the-art facilities like the UNC hospitals and the Duke University Medical Center. 

Another reason to consider moving to North Carolina is the mild climate. There are mild winters, which translate to lower heating bills, easier travel, and opportunities for outdoor activities like hiking and gardening.

If you’re all about life-long learning, you’ll love retiring to North Carolina. The state offers tuition waivers for seniors above 64 within community colleges and universities.  

6. Arizona 

Arizona started the first active retirement community in the US in 1954, and since then, the state has become a popular destination for retirees. 

It’s now home to over 150 retirement communities, the most popular one being Sun City. Therefore, if you’re primarily concerned about community and activities catered to seniors, Arizona is an excellent place to relocate.

Arizona’s major disadvantage over other states is that it imposes a state income tax. However, the state makes up for this by allowing social security benefits and inheritance tax exemptions. 

You can enjoy relatively low living costs, excellent healthcare, and exposure to diverse art, culture, and cuisine. 

7. South Carolina 

South Carolina is the ideal destination if you’re seeking a slow haven after retirement. It’s generally smaller and less congested than other go-to states for retirees like Florida.

The state charges state income tax between 0% and 7%. However, it doesn’t tax Social Security retirement benefits. 

While the state income tax may be disadvantageous, retirees in South Carolina, especially homeowners, pay relatively lower property taxes than other states. 

South Carolina’s long coastline, temperate climate, and diverse landscape offer numerous recreational activities. If you enjoy activities like kayaking, sailing, or fishing, this is one of the best places to live after retirement. 

South Carolina is also famous worldwide for golf and has over 350 golf courses. It is also home to a vibrant culture and historical sites like museums.

8. Nevada 

The vibrant nightlife, entertainment, and casinos in Las Vegas probably come to mind when you think about Nevada. 

However, the state has more to offer. I mean, there’s more to it than just one city. Therefore, even if you’re seeking a slower post-retirement life, you can settle in Nevada. 

Some towns that offer a more relaxed lifestyle include Pahrump, Carson City, and Elko. 

One upside of living in Nevada post-retirement is the exemption from state income tax. Also, the property tax rate in Nevada is lower than in most US states. 

Nevada also doesn’t impose taxes on inheritance and estates, making it an excellent place considering this factor. 

The state’s diverse landscapes allow people to maintain an active lifestyle through biking, hiking, and golfing activities.

Nevada also provides high-quality healthcare, and retirees have affordable health insurance policies.  

9. Virginia 

Virginia is worth considering if you’re interested in American history. It’s home to several historical sites related to the Civil War and the American Revolution. 

Virginia also offers a vibrant arts scene, which may be appealing if you’re a theatre and music enthusiast. 

If your primary concern after retirement is living a fulfilling life doing the things you love, you’ll enjoy living in Virginia. 

If your primary factor is taxes, it’s worth noting that Virginia imposes state income tax, though lower than other states. It doesn’t tax Social Security benefits, though. 

Virginia also has a favorable climate all year round, with warm summers and mild winters. Settling there can reduce your utility bills significantly compared to other states like New York.

Plus, the favorable weather makes it possible to indulge yourself in outdoor recreational activities all year.  

10. Pennsylvania 

There’s a lot to gain as a retired citizen of Pennsylvania, and that’s why the state made it to our list of the best states for retirees. 

From the diverse outdoor activities like fishing and hiking to the superior, affordable health care system, Pennsylvania is an excellent place to live. 

It charges state income tax but compensates for this by offering other tax benefits, such as not taxing Social Security benefits and 401(k) withdrawals. 

Living in Pennsylvania may be a bit more expensive than in states like Florida, but it has better climate conditions throughout the year. 

Also, as a Pennsylvanian resident, you’ll benefit from proximity to major cities like New York without experiencing the same high cost of living. 

Living costs in some areas of Pennsylvania, especially in small towns and rural areas, are considerably low, making them ideal for those who want a slow, quiet life. 

11. Georgia 

Like Pennsylvania, Georgia offers a relatively lower cost of living than other states along the East Coast. 

If you frequently travel to visit family and friends, the state has excellent domestic and international travel infrastructure.

Georgia is also famous for its southern culture and hospitality. It’s an excellent option if you’re concerned about finding and fitting into a good retirement community. 

It charges state income taxes but spares your Social Security and other retirement benefits. Furthermore, the climate is more favorable than in Florida.  

The Worst States for Retirees

If you’re retiring next year and want to maximize your financial plan and retirement benefits or find the best climate to enjoy your golden years, stay away from the following states:

• New York 
• Washington 
• Utah 
• Idaho 
• Colorado 
• Oregon 

These states have very high costs of living, which may impact your overall financial stability over time. 

However, if your only concern is healthcare, these states offer some of the best healthcare systems in the country.

Extra Reading – Best Part-Time Retirement Jobs

Things To Consider When Choosing a State To Live In After Retirement 

Choosing a state to relocate to can be challenging, but these factors can guide you in making the right decision:

The Cost of Living 

Living costs vary from one state to another, and finding the most affordable state is crucial. For instance, you’ll spend more in New York than in Florida. 

However, the affordability depends on where you’re moving from. If you’re already in a low-cost state, you don’t need to move unless you’re considering other factors like climate. 

It’s also essential to determine what you’re willing to compromise for an affordable cost of living. Most states with relatively lower living costs may not have high-quality health care. 

Also, such states may not have diverse cultural and entertainment facilities like those with higher living costs. 

As you compare costs of living between states, remember to consider other factors as well to avoid negative impacts in the long run. 

For instance, relocating to an inconducive climate simply because it’s cheaper isn’t sustainable. If anything, it may cause physical and mental health problems in the long run. 

The Quality of Health Care 

Healthcare is one of the most significant costs after retirement. As you choose a state, you need to pick one that offers high-quality health care that’s readily available. 

Compare health insurance policies and out-of-pocket costs you’ll need to incur depending on the state you settle for. 

If you need regular hospital visits, you must relocate near a hospital to conveniently make the trips. 

You should also choose a state that offers the specific healthcare you need. Not every state has specialized healthcare systems for seniors. 

High quality often comes with high costs. If your primary concern is healthcare and not finances, states like Washington, Oregon, and Utah may be ideal. 

However, these states offer high-quality healthcare at high costs. Therefore, if you want to balance quality and finances, states like Florida and Georgia have decent healthcare systems. 

Climate 

The best climates have warm summers and mild winters, such as those experienced in Arizona and Florida. 

Choosing the suitable climate prevents avoidable climate-related mental and physical health issues. It also goes a long way to reduce your utility bills in the long run. 

However, you must also consider areas that are prone to natural disasters. For instance, Florida is prone to flooding and hurricanes. 

Settling there may increase your insurance and electric bills in the long run. 

With that in mind, it’s better to settle in a coastal state that requires higher air conditioning bills than deal with property destruction caused by natural disasters. 

Taxes 

As a retiree, you may encounter the following taxes, depending on where you settle:

• State income tax 
• Federal income tax 
• Sales tax 
• Property taxes
• Estate and inheritance taxes 
• Capital gains tax 

Most retirees target states that don’t charge state income tax like Florida, Nevada, and Texas. However, it’s imperative to view all taxes cumulatively.

For instance, Washington doesn’t impose state income tax but has a higher sales tax than many other states. Also, the cost of living there is relatively higher. 

Your taxes are calculated based on how much you earn. Consider that in your calculations, and also consider states that don’t impose taxes on retirement benefits, like Social Security. 

A Sense of Community 

Life can get lonely after retirement, especially if you relocate away from your friends and family. That’s why it’s important to choose a state with a deep sense of community. 

Most retirees don’t consider this when making the decision, and they go on to lead unfulfilling lives rather than happily living out their golden years. 

Do your due diligence on different states to find the best suited for your needs. If you enjoy art and culture, consider relocating to a place with museums and cultural activities. 

Consider visiting the area for about three to six months to see how you adapt and blend in. Take the time to scout the neighborhood to determine if it meets your expectations. 

Frequently Asked Questions

What Are the Best States for Retirees To Retire for Taxes?

Here are some of the states with the best tax benefits for retirees:

• Florida 
• Tennessee 
• Nevada 
• Delaware 
• Texas 

What Is the Best State To Retire in on a Fixed Income?

If you’re on a fixed income after retirement, you might want to relocate to a state with relatively affordable living costs, taxes, and healthcare. Here are some of the best options:

• Florida 
• Tennessee 
• Georgia 
• Texas 
• South Carolina 

Best States To Retire With a Pension?

Here are the best states to retire to with a pension:

• Florida 
• Pennsylvania 
• Tennessee 
• Nevada 
• Texas 

What State Is the Best Financially for Retiring?

Here are some of the best states with affordable costs of living, favorable taxes, and high-quality healthcare:

• Florida 
• Tennessee 
• Texas 
• Nevada 

Final Thoughts 

The best states for retirees vary depending on individual needs. While you may be tempted to consider some factors over others, viewing them cumulatively achieves a better result. 

If you look at all factors wholesomely, you’ll arrive at a state that balances costs of living, healthcare access, climate, and community without compromising on any factor. 

However, in some cases, some factors take precedence over others. For example, if you need round-the-clock medical care, you can opt for states like Washington.