The top ten states to retire are not the same list they were a decade ago, and the shift is bigger than most people expect. According to the Tax Foundation's 2025 State Tax Competitiveness Index, several states with no income tax now rank among the most attractive for retirees, while some traditional favorites have slipped. The problem?
Retirement guides often rank states by sunshine alone, ignoring property taxes, healthcare access, and pension treatment. This article breaks down ten states worth a serious look, compares their tax and cost profiles, and shows you exactly how to verify the numbers yourself before you pack a single box.
1. Florida: No Income Tax, but Watch Insurance Costs
Florida tops most lists of the top ten states to retire for one simple reason: no state income tax on Social Security, pensions, or withdrawals. The Tax Foundation confirms Florida has no personal income tax, which keeps more money in your pocket each year.
The catch is housing and insurance. Homeowners insurance premiums have climbed sharply in coastal counties, and property taxes vary widely by county. A retiree near the coast may pay far more than one inland near Ocala.
- Check first: Request insurance quotes for a specific address before you buy.
- Look inland: Central Florida often balances climate and cost better than the coast.
A common scenario is a couple relocating from the Northeast who saves on income tax but loses the savings to insurance. Run both numbers side by side.
How to apply this: Use your state's Department of Revenue site to confirm current tax treatment of retirement income before you visit.
2. Tennessee: Low Taxes and Four Distinct Seasons
Tennessee pairs no income tax on wages with no tax on Social Security or pension income, making it a frequent entry among the top ten states to retire. The state also avoids the extreme storm exposure of the Gulf Coast.
Cost of living sits below the national average in most metros outside Nashville. Healthcare access is solid in Knoxville, Chattanooga, and the Tri-Cities region.
- Property tax: Rates are relatively low, but assess locally.
- Sales tax: Higher than average, so budget for everyday purchases.
Consider a retiree who moves to a smaller city like Maryville and finds housing costs roughly in line with national norms. The trade-off is a higher sales tax on groceries and goods.
How to apply this: Compare your annual spending on taxable goods against your income tax savings to see the real net gain.
3. Georgia: Retirement Income Exclusion Worth Knowing
Georgia offers a retirement income exclusion that can shelter a meaningful portion of retirement income from state tax. The Georgia Department of Revenue publishes the current thresholds, and they change periodically, so verify before you rely on them.
Beyond taxes, Georgia offers a mild climate, strong healthcare systems in Atlanta and Augusta, and a cost of living below the national average in many areas.
- Best fit: Retirees who want seasons without harsh winters.
- Watch: Traffic and housing in metro Atlanta.
In one case, a retiree choosing a smaller Georgia city found the exclusion plus lower housing costs offset a modest state tax bill. The key is running the math for your specific income mix.
How to apply this: Pull your last tax return and estimate Georgia tax using the state's published exclusion rules.
Georgia's retirement income exclusion can shelter part of your income, so check the current thresholds on the top ten states to retire list.
4. South Carolina: Coastal Living With Tax Relief
South Carolina has become a regular on lists of the top ten states to retire thanks to a favorable treatment of retirement income and a lower cost of living than many coastal alternatives.
The state offers deductions for retirees age 65 and older and does not tax Social Security. Coastal areas like Charleston and Beaufort are popular, though prices there have risen.
- Inland option: Greenville and Columbia offer lower housing costs.
- Climate risk: Hurricane exposure on the coast requires insurance planning.
A practical example is a retiree who chooses Greenville over Charleston and cuts housing costs substantially while keeping access to quality healthcare.
How to apply this: Review the South Carolina Department of Revenue's retiree deduction rules and model your income against them.
5. Nevada: No Income Tax, No Humidity
Nevada has no state income tax, which places it firmly among the top ten states to retire for tax-conscious movers. It also offers dry air and abundant outdoor recreation.
The trade-off is heat and water. Las Vegas and Henderson reach extreme summer temperatures, and water costs and restrictions matter. Property taxes are moderate, but sales taxes run high.
- Healthcare: Las Vegas has strong hospital systems; rural areas are thinner.
- Housing: Costs vary widely between Reno, Las Vegas, and rural counties.
Consider a retiree who moves to Henderson for the tax savings and finds the summer heat a real adjustment. Visiting in July before committing is essential.
How to apply this: Spend two weeks in your target city during the hottest month before deciding.
6. Wyoming: Small Population, Big Tax Advantages
Wyoming has no state income tax and no tax on retirement income, making it one of the top ten states to retire for people who prioritize tax efficiency above all else.
The state is rural, with a small population and wide-open spaces. That means fewer healthcare options in remote areas but low housing costs outside Jackson and Cheyenne.
- Healthcare access: Confirm hospital distance before buying rural property.
- Winter: Cold and windy, which matters for some retirees.
A retiree moving to Casper might find housing affordable and taxes minimal, but should confirm specialist care is available locally or plan travel to larger cities.
How to apply this: Map the distance from any candidate home to the nearest hospital and specialist clinic.
7. Alabama: Low Costs and Retirement Income Exemptions
Alabama offers exemptions on certain retirement income, and its overall cost of living ranks among the lowest in the country. That combination keeps it on the top ten states to retire radar.
The state does not tax Social Security and provides deductions for retirement income above certain ages. Property taxes are among the lowest nationally.
- Best fit: Retirees on fixed incomes who want low housing costs.
- Watch: Healthcare quality varies by region.
In one case, a retiree relocating to a smaller Alabama town found housing costs far below national averages, freeing budget for travel and healthcare.
How to apply this: Check the Alabama Department of Revenue's current retirement income rules and compare against your income sources.
8. Delaware: No Sales Tax and Pension Exclusions
Delaware stands out because it has no state sales tax and excludes a portion of retirement income from taxation. That makes it a quiet contender among the top ten states to retire.
The state is small, so healthcare and shopping are accessible, and the cost of living is moderate. Property taxes are relatively low.
- No sales tax: Everyday purchases cost less.
- Income tax: Still applies to some income, so model it carefully.
Consider a retiree who moves to a Wilmington suburb and finds the combination of no sales tax and pension exclusion offsets the state income tax on other income.
How to apply this: Track your annual spending on goods to estimate the value of no sales tax.
9. Texas: No Income Tax, Diverse Options
Texas has no state income tax, which keeps it on nearly every list of the top ten states to retire. Its size means you can choose from coast, hill country, or desert.
Property taxes run high, so a paid-off home still carries a meaningful annual bill. Insurance costs in coastal and hail-prone areas add up.
- Property tax: Compare effective rates by county, not just headline rates.
- Climate: Gulf humidity versus dry West Texas.
A retiree choosing the Hill Country around Fredericksburg may find a balance of climate, cost, and healthcare access that suits them better than Houston or Austin.
How to apply this: Pull county appraisal district data to compare effective property tax rates before you buy.
10. Pennsylvania: Retirement Income Exemptions for Older Residents
Pennsylvania does not tax Social Security and offers exemptions on retirement income for residents past a certain age, keeping it in the top ten states to retire conversation.
Costs are moderate, healthcare systems are strong in Pittsburgh and Philadelphia, and the state offers four seasons. Property taxes vary widely and can be high in some districts.
- Best fit: Retirees who want to stay near family in the Northeast.
- Watch: Local property tax rates.
In one case, a retiree moving from a high-tax state to a Pittsburgh suburb found the retirement income exemption plus moderate housing costs made the move worthwhile.
How to apply this: Review the Pennsylvania Department of Revenue's retirement income guidance and check local property tax millage rates.
Comparing the Top Retirement States at a Glance
| State | Income Tax on Retirement | Cost of Living | Action to Take |
|---|---|---|---|
| Florida | None | Moderate | Get insurance quotes |
| Tennessee | None | Below average | Compare sales tax |
| Georgia | Partial exclusion | Below average | Model your income |
| Nevada | None | Moderate | Visit in summer |
| Wyoming | None | Low (rural) | Check hospital distance |
| Texas | None | Moderate | Compare county property tax |
Use this table as a starting filter, not a final answer. The Tax Foundation publishes detailed state tax comparisons that let you verify each row.
This comparison table lets you weigh taxes and living costs across the top ten states to retire before choosing.
How to Verify Retirement Data Before You Move
Numbers change, and a state's tax treatment of retirement income can shift with new legislation. Always confirm details with official sources before you commit.
Use these tools to check the facts yourself:
- Tax Foundation — independent state tax data and rankings.
- Social Security Administration — confirms how benefits are taxed federally.
- AARP — state-by-state retirement guides and cost comparisons.
The Social Security Administration explains that federal taxation of benefits depends on your combined income, so state rules are only part of the picture.
How to apply this: Bookmark each state's Department of Revenue page and recheck it a month before you make an offer on a home.
Because rules change, verify every detail with official sources when reviewing the top ten states to retire.
Frequently Asked Questions About top ten states to retire
What if I want to keep working part-time in retirement?
Several states on the top ten states to retire list have no income tax on wages, which helps if you plan part-time work. Florida, Tennessee, Nevada, Texas, and Wyoming all avoid a personal income tax. Check whether your specific income type qualifies, since some states tax self-employment or investment income differently than wages.
How do I handle healthcare if I move to a rural state?
Rural states like Wyoming and parts of Alabama have fewer specialists. Before moving, confirm that your doctors accept Medicare in the new area and identify the nearest hospital with the services you need. Telehealth can fill gaps, but verify coverage under your Medicare Advantage or supplement plan.
Rural areas on the top ten states to retire list may lack specialists, so confirm Medicare acceptance and hospital access early.
Does moving affect my Social Security benefits?
Your federal benefit amount does not change when you move within the U.S. However, state taxes on benefits vary, which is why the top ten states to retire lists emphasize tax treatment. Confirm your new state's rules and update your address with the Social Security Administration promptly after moving.
What about property taxes if I rent instead of buy?
Renters avoid property tax bills directly, but landlords pass costs through rent. In high-property-tax states like Texas, rent can reflect that burden. If you rent, focus on total housing cost and state income tax treatment rather than the property tax rate itself.
Renters in high-property-tax states on the top ten states to retire list should compare total housing costs, not just rent.
Can I split time between two states?
Yes, but residency rules matter for taxes. Most states require you to establish domicile through voter registration, driver's license, and days spent in-state. If you split time, keep careful records, since the top ten states to retire often have strict residency tests that determine which state taxes your income.
Conclusion
Choosing where to retire comes down to matching your income, health needs, and climate preferences to a state's real costs.
- Tax treatment matters most for retirees with pensions and investment income.
- Property taxes and insurance can erase income tax savings.
- Healthcare access should be verified before any move.
- Official sources beat blog lists every time.
Start by listing your income sources and running each through two or three candidate states' revenue department rules. Then visit your top choice in the worst season before committing. The top ten states to retire are a starting map, not a destination, so verify the details and make the move with confidence.
