Side-by-side for American retirees in 2026.
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.
The northeastern retirement haven for snowbirds who can't quite leave the seasons. No wage income tax, no sales tax, and pristine outdoor lifestyle.
| Flat 2.5% | Income tax | No state income tax |
| Exempt | Social Security | Exempt |
| Flat 2.5% on most retirement income; Social Security fully exempt | Pension treatment | All retirement income state-tax-free (since 2025) |
| 0.51% | Property tax (effective) | 1.93% |
| 8.40% | Avg combined sales tax | 0.00% |
| 102.5 | Cost of living (US=100) | 109.7 |
| None | Estate / inheritance tax | None |
| Hot dry summers (100°F+ in Phoenix), mild winters. Flagstaff and Prescott offer cooler mountain climates year-round. | Climate | Four full seasons including snowy winters. Mild summers (70–80°F), cold winters (often below 20°F). |
| Excellent — Mayo Clinic Scottsdale, Banner Health, HonorHealth. Tucson has top geriatric care. | Healthcare | Excellent — Dartmouth-Hitchcock Medical Center is one of the top academic systems in the country. |
| Scottsdale, Tucson, Prescott | Top retirement cities | Portsmouth, Hanover, Wolfeboro |
Senior property tax freeze available age 65+ with income under ~$45K (varies by county)
Property tax exemption for elderly (varies sharply by town) with age 65/75/80 tiers
Arizona: 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. New Hampshire: The northeastern retirement haven for snowbirds who can't quite leave the seasons. No wage income tax, no sales tax, and pristine outdoor lifestyle. The right choice depends on your income mix, climate preference, and whether state income tax matters more to you than property tax.
No, Arizona does not tax Social Security retirement benefits.
No, New Hampshire does not tax Social Security retirement benefits.
Arizona's cost of living index is 102.5 (US = 100). New Hampshire's is 109.7. Arizona is cheaper on average.
Enter your retirement income and see the after-tax difference between Arizona and New Hampshire in 30 seconds.
Open tax estimator →Tax data current as of 2026 publication. Rates and rules change annually — verify with a CPA before relocating. This page is educational and not personalized tax or legal advice.