Where to Retire Without Breaking the Bank
We know retirement should be all about relaxing and enjoying life without money stress. That’s why we put together this list of the 25 most affordable states to retire in, using data on home prices, cost of living, taxes on Social Security, and healthcare quality. We ranked them from least to most affordable, so you can find the best place to make your savings go further and truly enjoy your golden years.
Delaware
Median home price: $375,000
Cost of living index: 104 (4% above the national average)
State tax on Social Security: No
Healthcare ranking: 20th nationally
With no sales tax and beautiful beaches, Delaware is a peaceful and tax-friendly option for retirees.
PookieFugglestein, CC0, Wikimedia Commons
Virginia
Median home price: $390,000
Cost of living index: 101 (1% above the national average)
State tax on Social Security: No
Healthcare ranking: 19th nationally
History, nature, and friendly tax rules make Virginia a nice balance for retirement living.
Florida
Median home price: $400,000
Cost of living index: 102 (2% above the national average)
State tax on Social Security: No
Healthcare ranking: 25th nationally
Sunshine, beaches, and no state income tax make Florida a classic favorite for retirees.
Texas
Median home price: $315,000
Cost of living index: 92 (8% below the national average)
State tax on Social Security: No
Healthcare ranking: 42nd nationally
Big skies, no state income tax, and lots of friendly towns make Texas a popular pick.
Tennessee
Median home price: $285,000
Cost of living index: 91 (9% below the national average)
State tax on Social Security: No
Healthcare ranking: 44th nationally
Low taxes and beautiful mountain views make Tennessee an easygoing and affordable choice.
Kentucky
Median home price: $215,000
Cost of living index: 90 (10% below the national average)
State tax on Social Security: No
Healthcare ranking: 43rd nationally
With rolling hills and horse country charm, Kentucky offers big value for a smaller budget.
Louisiana
Median home price: $225,000
Cost of living index: 93 (7% below the national average)
State tax on Social Security: No
Healthcare ranking: 48th nationally
Jazz music, good food, and low living costs make Louisiana full of fun and flavor for retirees.
North Carolina
Median home price: $320,000
Cost of living index: 95 (5% below the national average)
State tax on Social Security: No
Healthcare ranking: 34th nationally
Mountains, beaches, and mild weather give North Carolina something for everyone.
Precisionviews, CC BY-SA 4.0, Wikimedia Commons
South Carolina
Median home price: $325,000
Cost of living index: 94 (6% below the national average)
State tax on Social Security: No
Healthcare ranking: 38th nationally
Warm weather, coastal charm, and friendly taxes make South Carolina a sweet Southern spot.
Georgia
Median home price: $300,000
Cost of living index: 89 (11% below the national average)
State tax on Social Security: No
Healthcare ranking: 37th nationally
Georgia’s mild winters and generous tax breaks are big draws for retirees who love warm weather.
New Mexico
Median home price: $325,000
Cost of living index: 92 (8% below the national average)
State tax on Social Security: Partially taxed
Healthcare ranking: 46th nationally
Unique art, colorful culture, and desert sunsets make New Mexico feel special and affordable.
Missouri
Median home price: $200,000
Cost of living index: 89 (11% below the national average)
State tax on Social Security: Partially taxed
Healthcare ranking: 32nd nationally
Affordable homes and friendly communities make Missouri a heartland favorite for retirees.
Indiana
Median home price: $220,000
Cost of living index: 91 (9% below the national average)
State tax on Social Security: No
Healthcare ranking: 30th nationally
Simple living and low costs make Indiana a comfortable, down-to-earth choice.
Nicholas J. Klein, Adobe Stock
Ohio
Median home price: $200,000
Cost of living index: 90 (10% below the national average)
State tax on Social Security: No
Healthcare ranking: 28th nationally
Affordable homes and friendly neighborhoods make Ohio an easy place to settle in.
Nicholas J. Klein, Adobe Stock
Michigan
Median home price: $220,000
Cost of living index: 92 (8% below the national average)
State tax on Social Security: No
Healthcare ranking: 27th nationally
Beautiful lakes and small-town charm make Michigan feel peaceful and welcoming.
Nebraska
Median home price: $260,000
Cost of living index: 91 (9% below the national average)
State tax on Social Security: Being phased out
Healthcare ranking: 21st nationally
Nebraska’s friendly feel and low costs make it a hidden gem in the Midwest.
Collinulness, CC BY-SA 3.0, Wikimedia Commons
Iowa
Median home price: $239,000
Cost of living index: 90 (10% below the national average)
State tax on Social Security: No
Healthcare ranking: 18th nationally
Quiet towns and low costs make Iowa a great place to enjoy a slower, peaceful life.
Grindstone Media Grp, Adobe Stock
North Dakota
Median home price: $250,000
Cost of living index: 95 (5% below the national average)
State tax on Social Security: No
Healthcare ranking: 11th nationally
Strong communities and good healthcare make North Dakota a surprisingly solid choice.
South Dakota
Median home price: $275,000
Cost of living index: 96 (4% below the national average)
State tax on Social Security: No
Healthcare ranking: 16th nationally
Wide open spaces and no state income tax make South Dakota a true freedom-filled option.
Wisconsin
Median home price: $250,000
Cost of living index: 95 (5% below the national average)
State tax on Social Security: No
Healthcare ranking: 14th nationally
Lakes, cheese, and friendly folks make Wisconsin a happy and affordable place to retire.
Pennsylvania
Median home price: $254,000
Cost of living index: 97 (3% below the national average)
State tax on Social Security: No
Healthcare ranking: 22nd nationally
Cute small towns and big city access give Pennsylvania a nice mix of options.
Arkansas
Median home price: $205,000
Cost of living index: 86 (14% below the national average)
State tax on Social Security: No
Healthcare ranking: 41st nationally
Beautiful mountains and warm Southern charm make Arkansas an inviting place to retire.
Oklahoma
Median home price: $210,000
Cost of living index: 87 (13% below the national average)
State tax on Social Security: Partially taxed
Healthcare ranking: 45th nationally
Low costs and friendly communities make Oklahoma a budget-friendly favorite.
Alabama
Median home price: $220,000
Cost of living index: 88 (12% below the national average)
State tax on Social Security: No
Healthcare ranking: 39th nationally
Warm weather, low taxes, and true Southern hospitality make Alabama shine for retirees.
Mississippi
Median home price: $190,000
Cost of living index: 84 (16% below the national average)
State tax on Social Security: No
Healthcare ranking: 50th nationally
Mississippi has the lowest living costs in the country, making it the top choice for retirees wanting to make the most of every dollar.
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