We scored the most popular US retirement states on the things that matter most when you're living on a fixed income: state income tax, how Social Security and pensions are treated, property tax, sales tax, and overall cost of living. Here's how they rank for 2026.
How we score: each state earns up to 100 points — income tax (35), property tax (25), cost of living (20), Social Security (10), sales tax (7), and estate tax (3). Higher is more retiree-friendly. Tax rates reflect 2025/2026 schedules and can change annually — verify with a CPA before relocating.
No state income tax, low cost of living, and four mild seasons. The mountains, lakes, and music capital make it one of the fastest-growing retirement destinations.
Income tax: No income tax · Social Security: Exempt · Property tax: 0.67% · Cost of living: 90
Western alternative to Florida. No income tax, dry desert climate, and Las Vegas/Henderson/Reno offer tax-free retirement with strong healthcare.
Income tax: No income tax · Social Security: Exempt · Property tax: 0.59% · Cost of living: 101
The default American retirement state — and still the #1 destination. No state income tax, no estate tax, year-round warm weather, and the country's largest retiree community.
Income tax: No income tax · Social Security: Exempt · Property tax: 0.82% · Cost of living: 103
Big, varied, and tax-friendly. No state income tax, lower cost of living than Florida, and three distinct retirement regions (Hill Country, Gulf Coast, North Texas).
Income tax: No income tax · Social Security: Exempt · Property tax: 1.63% · Cost of living: 93
Florida's biggest rival for the snowbird crowd. Dry desert climate, lower humidity than the Southeast, a flat 2.5% income tax, and Social Security fully exempt.
Income tax: Flat 2.5% · Social Security: Exempt · Property tax: 0.51% · Cost of living: 103
Cheapest of the major southern retirement states. Social Security, government pensions, and most defined-benefit pensions fully exempt — plus rock-bottom property taxes.
Income tax: Top 5% · Social Security: Exempt · Property tax: 0.40% · Cost of living: 88
The northeastern retirement haven for snowbirds who can't quite leave the seasons. No wage income tax, no sales tax, and pristine outdoor lifestyle.
Income tax: No income tax · Social Security: Exempt · Property tax: 1.93% · Cost of living: 110
Full New Hampshire retirement guide → · New Hampshire vs North Carolina
Four-season retirement with mountains, coast, and the Research Triangle. Flat income tax, no Social Security tax, and exceptional healthcare from Duke and UNC.
Income tax: Flat 4.25% · Social Security: Exempt · Property tax: 0.73% · Cost of living: 95
Full North Carolina retirement guide → · North Carolina vs Georgia
One of the most generous states for retirees — up to $130K per couple of retirement income excluded from state tax. Mild climate, mountains, and Atlanta as a hub.
Income tax: Flat 5.29% · Social Security: Exempt · Property tax: 0.81% · Cost of living: 91
Cheaper than its northern neighbor, with one of the most generous retirement income deductions in the country. Coastal retirement hubs and historic charm.
Income tax: Top 6.2% · Social Security: Exempt · Property tax: 0.53% · Cost of living: 95
Full South Carolina retirement guide → · South Carolina vs Delaware
Underrated mid-Atlantic option. No sales tax, low property tax, and a meaningful pension exclusion. Coastal beach towns are surprisingly affordable.
Income tax: Top 6.6% · Social Security: Exempt · Property tax: 0.61% · Cost of living: 103
Four-season retirement with proximity to DC, the Blue Ridge, and the Chesapeake Bay. Income tax applies but a meaningful age 65+ deduction softens it.
Income tax: Top 5.75% · Social Security: Exempt · Property tax: 0.82% · Cost of living: 101
The right state depends on your income mix. Enter your Social Security, pension, and withdrawals to estimate what you'd actually pay.
Open the tax estimator →Rankings are educational and based on tax and cost-of-living data current as of 2026 publication. They are not personalized tax, legal, or financial advice. Verify all figures with a qualified CPA before relocating.