Best States to Retire in 2026 (A Financial Planner’s Perspective)
Why Relocating Affects Retirement Income
Where you choose to live in retirement can be just as important as how much you have saved. From tax policy and
healthcare access to housing costs and lifestyle considerations, your state of residence can either stretch your
retirement income or quietly erode it over time.
From a financial planner’s perspective, retirement relocation isn’t just about warmer weather or scenic views—it’s
about aligning your living environment with your long-term income strategy, healthcare needs, and legacy goals. A
state with lower taxes, reasonable housing costs, and strong healthcare infrastructure can help reduce withdrawals
from your portfolio, preserve assets for heirs, and provide greater peace of mind throughout retirement.
This guide explores the best states to retire in 2026 using a planning-first lens. You’ll see the criteria behind
the rankings, a breakdown of the top ten states, a side-by-side comparison of popular destinations, and a practical
checklist to evaluate whether a move truly supports your retirement plan.
Quick Takeaways
- Tax policy matters: income tax, Social Security treatment, property taxes, and sales taxes all affect cash flow.
- Healthcare access is a dealbreaker: proximity to specialists and quality hospital systems can outweigh tax savings.
- Housing + insurance drive budgets: affordability, property taxes, and insurance costs often move the needle more than expected.
- The “best” state is personal: your income sources, spending patterns, and lifestyle priorities should guide the decision.
Ranking Criteria: How We Evaluated the Best States
No single factor determines the best state for retirement. Instead, the strongest choices tend to balance several
financial and lifestyle variables. Our rankings are based on the core criteria below.
Tax Environment
Taxes play a significant role in retirement cash flow. We evaluated whether states tax Social Security benefits,
pension income, and withdrawals from retirement accounts. We also considered state income tax rates, sales taxes,
and property taxes—each of which affects day-to-day spending.
Healthcare Access and Quality
As healthcare needs often increase with age, access to quality medical care is essential. States with strong
hospital systems, higher physician availability, and reasonable healthcare costs scored higher.
Housing Affordability
Housing often represents one of the largest retirement expenses. We weighed median home prices, rental costs,
property tax levels, and housing availability—especially for downsizing retirees.
Cost of Living
Beyond housing, everyday expenses such as groceries, utilities, transportation, and insurance significantly affect
retirement income sustainability. States with below-average or moderate cost-of-living levels ranked favorably.
Lifestyle and Infrastructure
Climate, transportation, recreation, and community resources matter. States offering senior-friendly
infrastructure, diverse recreational opportunities, and strong community engagement added value beyond pure
financial metrics.
At-a-Glance Comparison of Popular Retirement States
Use this quick comparison to spot tradeoffs. Treat it as a starting point—your best choice depends on your income
mix, health needs, and lifestyle priorities.
| State | Income Tax on Retirement Income | Social Security Taxed? | Housing Costs | Healthcare Access | Notable Watchouts |
|---|---|---|---|---|---|
| Florida | No state income tax | No | Varies widely | Strong in many metros | Insurance + coastal pricing |
| Texas | No state income tax | No | Often moderate | Robust in major metros | Higher property taxes |
| Arizona | Low/moderate | No | Generally reasonable | Strong in Phoenix/Tucson | Heat + regional variability |
| Georgia | Moderate with exclusions | No | Often affordable outside Atlanta | Strong systems statewide | Metro congestion in some areas |
| Tennessee | No state income tax | No | Often affordable | Strong in major cities | Higher sales tax |
Top 10 States to Retire in 2026
1. Florida
Florida remains a perennial favorite for retirees—and for good reason. The state does not impose a personal
income tax, which means Social Security benefits, pensions, and retirement account withdrawals are not taxed at
the state level. That can meaningfully improve retirement cash flow and reduce portfolio withdrawals.
Housing costs vary widely across Florida. Coastal and metro areas can be expensive, while inland communities are
often more affordable. Healthcare access is strong in many areas, with a high concentration of specialists and
established hospital systems. Combined with warm weather and abundant recreation, Florida continues to be a
top-tier retirement destination.
2. Texas
Texas offers a compelling mix of tax advantages and economic vitality. Like Florida, Texas has no state income
tax, which can be attractive for retirees with substantial taxable income. While property taxes can be higher,
lower housing prices in many regions may offset part of that cost.
Healthcare infrastructure is robust, especially in major metros such as Dallas, Houston, and Austin. Lifestyle
options range from quiet towns to vibrant cities, making it easier to match your preferred pace of life.
3. Arizona
Arizona has steadily climbed retirement rankings due to its climate, affordability, and relatively tax-friendly
policies. Social Security benefits are not taxed, and other retirement income is often taxed at comparatively
manageable rates.
Housing costs remain reasonable compared to many coastal states, and healthcare access is strong in Phoenix and
Tucson. The dry climate can be especially appealing to retirees with respiratory or joint concerns, and outdoor
recreation is a major plus.
4. Georgia
Georgia combines moderate taxes with a relatively low cost of living, making it an attractive option for retirees
seeking balance. Social Security income is exempt from state taxes, and generous retirement income exclusions may
apply to other sources.
Housing is often affordable outside Atlanta, and the state features strong healthcare systems, mild winters, and
access to both mountains and coastline—offering lifestyle flexibility without excessive cost.
5. Tennessee
Tennessee’s lack of state income tax places it high on the list for income-focused retirees. Sales taxes can be
higher, so the best outcomes tend to come from budgeting thoughtfully—especially for discretionary spending.
Housing remains affordable in many areas, and healthcare access is strong in cities like Nashville and Knoxville.
Tennessee offers a blend of cultural amenities, natural beauty, and financial efficiency.
6. North Carolina
North Carolina offers a moderate tax environment with reasonable cost-of-living levels and diverse geographic
options. While retirement income may be taxed, rates are often predictable, which helps planning.
The state is known for high-quality healthcare systems and a range of housing choices, from coastal communities to
mountain towns. It’s a strong fit for retirees who want four-season living without extreme weather.
7. South Carolina
South Carolina provides favorable tax treatment for retirees, including exemptions on Social Security benefits and
partial exclusions for other retirement income. Property taxes can be relatively low, especially for owner-occupied
homes.
Housing costs are moderate, and healthcare access is strongest in and around larger population centers. Mild winters
and coastal living add to its appeal.
8. Nevada
Nevada’s absence of state income tax is a major draw from a cash-flow perspective. Housing costs vary widely, with
more affordable options often found outside the most expensive metro areas.
Healthcare access is improving, but coverage and specialist availability can differ significantly by region. If you’re
considering Nevada, evaluate healthcare proximity and provider networks before deciding.
9. Idaho
Idaho has gained attention as a quieter, lower-cost retirement option. While retirement income may be taxed, overall
rates are moderate, and housing can be relatively affordable compared to many Western states.
Healthcare access is strongest near larger cities, and the state offers natural beauty, a slower pace of life, and
appealing outdoor recreation.
10. Pennsylvania
Pennsylvania offers notable tax advantages for retirees, as most retirement income—including Social Security,
pensions, and many retirement account withdrawals—is not taxed at the state level.
Housing is affordable in many areas, and healthcare access is excellent. Winters can be colder, but the financial
benefits make Pennsylvania a strong contender for cost-conscious retirees.
Comparing Popular Retirement States: Florida, Texas, Arizona, Georgia, and Beyond
Many retirees narrow their choices to a handful of popular states. Comparing them side by side can reveal meaningful
differences that don’t show up in a simple ranking.
Florida and Texas both shine for income tax savings, but Florida may appeal more to retirees due to its senior-focused
communities and healthcare density in many areas. Texas may appeal more to those who want economic vibrancy, diverse
metro options, and strong infrastructure in major cities.
Arizona can offer a middle ground with sunshine, relatively manageable taxes, and strong healthcare in key hubs—often
without coastal price tags. Georgia provides a balanced option with lower housing costs in many areas and favorable tax
exclusions, particularly for retirees who want proximity to family in the Southeast.
Ultimately, the “best” state is not simply the one with the lowest taxes—it’s the one that best aligns with your income
sources, spending patterns, health needs, and personal priorities.
How to Evaluate a State for Retirement: A Practical Checklist
Before making a move, retirees should conduct a comprehensive evaluation that goes beyond headlines and rankings. Use
this checklist as a starting point, then refine it with your personal numbers.
Income and Tax Considerations
- Does the state tax Social Security benefits?
- How are pensions and retirement account withdrawals treated?
- What are the property and sales tax rates—and how will they affect your spending?
Healthcare Access
- Are high-quality hospitals and specialists nearby?
- How far would you need to travel for specialized care?
- Are healthcare costs reasonable for your expected needs and insurance coverage?
Housing and Living Costs
- Can you afford to buy or rent comfortably without increasing portfolio withdrawals?
- How stable is the local housing market in your target area?
- What are utility, insurance, and maintenance costs likely to be?
Lifestyle and Community
- Does the climate support your health and preferences?
- Are there recreational, cultural, and social opportunities you’ll actually use?
- Is the community senior-friendly, accessible, and easy to navigate long-term?
Long-Term Planning
- How will the move affect your estate plan and beneficiary goals?
- Are there state-specific legal considerations that impact you?
- Will relocating simplify or complicate your overall financial strategy?
Review Your Retirement Plan Before Moving
Choosing the best state to retire in 2026 is a deeply personal decision, but it should always be grounded in sound
financial planning. Taxes, healthcare, housing, and cost of living interact with your retirement income strategy in
ways that can either support or strain your long-term goals. A well-timed, well-planned relocation can reduce
financial stress, protect your assets, and enhance your overall quality of life.
At Protect & Preserve Inc., we go beyond investments. We help you connect the dots across your
financial world—bringing together wealth management, tax strategies, risk planning, legal services, and business advice
into a clear, proactive roadmap. With a focus on retirement planning, legacy protection, and financial peace of mind,
we’re proud to serve clients across the region, both in person and virtually.
If you’re considering relocating in retirement—or simply want to ensure your current plan aligns with your future
lifestyle—now is the time to review your strategy. Reach out today to schedule your complimentary consultation and let
us help you protect what you’ve built and preserve what matters most.