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.
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.
| Flat 2.5% | Income tax | Progressive, top 5.75% |
| Exempt | Social Security | Exempt |
| Flat 2.5% on most retirement income; Social Security fully exempt | Pension treatment | $12K age deduction at 65+; Social Security fully exempt |
| 0.51% | Property tax (effective) | 0.82% |
| 8.40% | Avg combined sales tax | 5.77% |
| 102.5 | Cost of living (US=100) | 101.4 |
| 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 distinct seasons. Mild winters in the south/coast; cooler in the mountains. Warm humid summers. |
| Excellent — Mayo Clinic Scottsdale, Banner Health, HonorHealth. Tucson has top geriatric care. | Healthcare | Excellent — UVA Health (Charlottesville), VCU Health (Richmond), proximity to top DC-area systems. |
| Scottsdale, Tucson, Prescott | Top retirement cities | Williamsburg, Charlottesville, Roanoke |
Senior property tax freeze available age 65+ with income under ~$45K (varies by county)
Real estate tax relief for elderly/disabled available in most localities — income limits vary
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. Virginia: 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. 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, Virginia does not tax Social Security retirement benefits.
Arizona's cost of living index is 102.5 (US = 100). Virginia's is 101.4. Virginia is cheaper on average.
Enter your retirement income and see the after-tax difference between Arizona and Virginia 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.