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.
Cheaper than its northern neighbor, with one of the most generous retirement income deductions in the country. Coastal retirement hubs and historic charm.
| Flat 2.5% | Income tax | Progressive, top 6.2% |
| Exempt | Social Security | Exempt |
| Flat 2.5% on most retirement income; Social Security fully exempt | Pension treatment | $15K/person retirement deduction at 65+; Social Security fully exempt |
| 0.51% | Property tax (effective) | 0.53% |
| 8.40% | Avg combined sales tax | 7.50% |
| 102.5 | Cost of living (US=100) | 95.0 |
| None | Estate / inheritance tax | None |
| Hot dry summers (100°F+ in Phoenix), mild winters. Flagstaff and Prescott offer cooler mountain climates year-round. | Climate | Warm humid summers, mild winters. Low country (Charleston, Hilton Head) is hot and humid; upstate (Greenville) is cooler. |
| Excellent — Mayo Clinic Scottsdale, Banner Health, HonorHealth. Tucson has top geriatric care. | Healthcare | Solid in major metros — MUSC (Charleston), Prisma Health (Greenville). More limited in rural areas. |
| Scottsdale, Tucson, Prescott | Top retirement cities | Hilton Head Island, Charleston, Bluffton |
Senior property tax freeze available age 65+ with income under ~$45K (varies by county)
$50K homestead exemption + first $100K of home value exempt from school operating tax for 65+
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. South Carolina: Cheaper than its northern neighbor, with one of the most generous retirement income deductions in the country. Coastal retirement hubs and historic charm. 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, South Carolina does not tax Social Security retirement benefits.
Arizona's cost of living index is 102.5 (US = 100). South Carolina's is 95.0. South Carolina is cheaper on average.
Enter your retirement income and see the after-tax difference between Arizona and South Carolina 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.