Retirement opens up a new chapter of life where the choice of where to live can be decided by factors different from those during working years. The best retirement locations offer a blend of pleasant weather, recreational opportunities, high-quality healthcare, a thriving social scene, low taxes, and affordability. As such, we’ve ranked the 10 best states to retire in 2023:
10. Pennsylvania
Known as the Keystone State, Pennsylvania is a viable option for retirement. The state offers excellent tax benefits to retirees, with no taxes on Social Security benefits and retirement accounts such as 401(k)s and IRAs. Additionally, it has a below-average cost of living and a property tax/rent rebate program for residents 65 and older.
Pennsylvania’s diverse culture, beautiful scenery, and historical sites also add appeal. Whether it’s exploring the Liberty Bell in Philadelphia or enjoying the tranquility of the Pocono Mountains, there’s a lot to see and do here.
9. Kentucky
The Bluegrass State is green in more ways than one. Kentucky has an attractive tax climate for retirees. While Social Security income is partially taxed, there are generous exemptions for pension income and retirement account withdrawals. The overall cost of living is well below the national average, including health care costs.
Furthermore, Kentucky’s beauty and charm, from the Appalachian Mountains to the horse-racing heartland, offer a rich cultural and outdoor experience for retirees.
8. Michigan
Michigan’s appeal to retirees lies in its favorable tax system. The state doesn’t tax Social Security benefits and offers deductions on other types of retirement income. Despite having a sales tax, the cost of living in Michigan is below the national average, which can stretch retirement savings further.
Whether you’re drawn to the Great Lakes’ coastal charm or the vibrant music scene in Detroit, Michigan offers a varied and fulfilling retirement.
7. South Dakota
The Mount Rushmore State is another gem for retirees. South Dakota has no state income tax, meaning Social Security benefits, pensions, and other retirement incomes are tax-free. The cost of living is also lower than the national average, particularly regarding housing and health care costs.
South Dakota’s natural beauty, from Badlands National Park to the Black Hills, also provide ample outdoor recreation opportunities for active retirees.
6. Wyoming
Wyoming shines as a retirement haven thanks to its favorable tax climate. The state has no income tax, ensuring retirees keep more of their hard-earned money. The state’s sales tax is also reasonably low, and the cost of living is on par with the national average.
Aside from financial benefits, Wyoming’s majestic landscapes, including Yellowstone National Park, make it an attractive place for those who enjoy outdoor activities.
5. Texas
Texas offers a tax-friendly environment that’s hard to beat. The state levies no income tax, so all types of retirement income are tax-free. Despite higher property taxes, the absence of a state income tax can compensate for many retirees.
Moreover, the cost of living in Texas is below the national average, offering affordable housing options and a lower overall cost of living. With its cultural diversity and plenty of recreational activities, Texas is a great place to retire.
4. Delaware
Small but mighty, Delaware is a great state for retirement. It does not tax Social Security benefits, and there is a generous deduction for other types of retirement income for those over 60. Plus, Delaware residents enjoy low property taxes and no sales tax.
Though the cost of living is near the national average, housing is relatively affordable, and the state’s proximity to major East Coast cities adds to its allure.
3. Nevada
Nevada offers more than just its bright lights for retirees. The state has no income tax, which translates to tax-free retirement income. The cost of living is near the national average, but utilities and healthcare costs are below average, helping to balance out housing expenses.
Whether it’s the bustling life in Las Vegas or the tranquil beauty of Lake Tahoe, Nevada provides an engaging retirement experience.
2. Alaska
For the adventurous, Alaska is a financially savvy choice. With no state income tax or sales tax, retirement income goes further. Living expenses can be higher, but the state pays all permanent residents an annual dividend from the Alaska Permanent Fund, which can help defray these costs.
For retirees who love breathtaking landscapes and don’t mind the cold, Alaska offers a unique and fulfilling retirement experience.
1. Florida
Perhaps unsurprisingly, Florida tops the list. The Sunshine State offers a perfect blend of warm weather, beautiful beaches, and excellent tax benefits. There is no state income tax, meaning Social Security benefits, pension income, and withdrawals from retirement accounts are tax-free.
While the cost of living is slightly above the national average, this is offset by the lack of state income tax and the abundant opportunities for leisure and relaxation. Whether it’s soaking up the sun on the state’s stunning beaches or enjoying the vibrant arts scene, Florida remains the gold standard for retirement.
