Sunshine, Savings, and Surprises
Retirement isn’t just about golf courses and rocking chairs—it’s about stretching every dollar, staying healthy, and maybe even leaving a little extra for some fun. And while some states go out of their way to make life easier for retirees, with generous tax breaks, solid healthcare systems, and affordable living costs—some don't.
To find the best of the best, we looked at three key factors: whether Social Security is taxed, how each state’s healthcare system ranks in the 2025 Commonwealth Fund scorecard, and the latest cost of living data. The results might surprise you—because the best retirement isn’t always where the beaches are. Any guesses what state is number 1?
25: Vermont
Social Security: Taxed (income-based)
Healthcare ranking: 13th
Cost of living index: 114.4
Vermont offers strong healthcare, but it taxes Social Security and has one of the highest costs of living in the nation. Gorgeous scenery comes with a steep price tag.
24: Oregon
Social Security: Not taxed
Healthcare ranking: 22nd
Cost of living index: 112.0
Oregon spares retirees from Social Security taxes, but higher living costs and middling healthcare pull it down the list.
23: Connecticut
Social Security: Taxed (partial, income-based)
Healthcare ranking: 5th
Cost of living index: 112.3
Connecticut shines in healthcare—ranking among the best nationally—but the state’s high costs and SS taxes make it a tough fit for many.
JJBers, CC BY 3.0, Wikimedia Commons
22: Minnesota
Social Security: Taxed (with phase-outs)
Healthcare ranking: 10th
Cost of living index: 95.1
Affordable living and excellent healthcare are big pluses, but Minnesota’s Social Security taxes keep it from climbing higher.
21: Colorado
Social Security: Taxed (with deductions)
Healthcare ranking: 9th
Cost of living index: 102.0
Colorado mixes solid healthcare with moderate costs, but retirees still face SS taxes—though many gladly pay for those mountain views.
20: Maine
Social Security: Not taxed
Healthcare ranking: 15th
Cost of living index: 112.1
Maine’s healthcare system is reliable and Social Security is exempt, but high living costs mean retirees need deeper pockets.
19: Wisconsin
Social Security: Not taxed
Healthcare ranking: 16th
Cost of living index: 97.0
With no SS tax and affordable living, Wisconsin offers a balanced retirement—plus plenty of cheese curds to go around.
18: Delaware
Social Security: Not taxed
Healthcare ranking: 29th
Cost of living index: 100.8
Delaware combines no SS tax and moderate costs with lower healthcare rankings, but its no sales tax policy sweetens the deal.
Tim Kiser, CC BY-SA 2.5, Wikimedia Commons
17: Iowa
Social Security: Not taxed
Healthcare ranking: 20th
Cost of living index: 89.7
Affordable living and tax-free Social Security make Iowa a surprisingly smart choice for retirees looking to stretch their money.
Grindstone Media Grp, Adobe Stock
16: New Hampshire
Social Security: Not taxed
Healthcare ranking: 3rd
Cost of living index: 112.6
New Hampshire boasts world-class healthcare, though its high costs keep it just shy of the top tier.
Quintin Soloviev, CC BY 4.0, Wikimedia Commons
15: Utah
Social Security: Taxed (credit/phase-outs)
Healthcare ranking: 7th
Cost of living index: 104.9
Utah offers top healthcare and an active lifestyle, but Social Security taxation knocks it back a few spots.
14: Virginia
Social Security: Not taxed
Healthcare ranking: 19th
Cost of living index: 100.7
Virginia blends solid healthcare, manageable costs, and no SS tax—an appealing combination for retirees.
13: Idaho
Social Security: Not taxed
Healthcare ranking: 23rd
Cost of living index: 102.0
Idaho delivers affordability, scenic landscapes, and no SS tax. Healthcare is middle of the road, but many retirees see it as a fair trade.
12: Massachusetts
Social Security: Not taxed
Healthcare ranking: 1st
Cost of living index: 145.9
Massachusetts leads the nation in healthcare but also has one of the highest living costs, making it ideal for retirees who can afford it.
11: Washington
Social Security: Not taxed
Healthcare ranking: 11th
Cost of living index: 114.2
No income tax and strong healthcare help offset Washington’s high living costs, especially for retirees who love the outdoors.
10: Arizona
Social Security: Not taxed
Healthcare ranking: 27th
Cost of living index: 111.5
Sunny weather and no SS tax make Arizona popular, though higher costs and weaker healthcare keep it in the middle.
9: Michigan
Social Security: Not taxed
Healthcare ranking: 28th
Cost of living index: 90.4
Michigan offers one of the lowest costs of living in this ranking, paired with tax-free Social Security—a winning formula for budget-conscious retirees.
8: Pennsylvania
Social Security: Not taxed
Healthcare ranking: 17th
Cost of living index: 95.1
Pennsylvania is affordable, spares Social Security from taxes, and provides decent healthcare—making it a steady, balanced choice.
7: Tennessee
Social Security: Not taxed
Healthcare ranking: 31st
Cost of living index: 90.5
Low living costs and no SS tax make Tennessee attractive, even if healthcare options aren’t the strongest.
6: Florida
Social Security: Not taxed
Healthcare ranking: 39th
Cost of living index: 102.8
Florida stays a retirement favorite thanks to warm weather and no SS tax—even if healthcare lags far behind.
5: North Carolina
Social Security: Not taxed
Healthcare ranking: 21st
Cost of living index: 97.8
A mild climate, decent healthcare, and affordable costs keep North Carolina firmly in the top five.
Mark Turner, Wikimedia Commons
4: Georgia
Social Security: Not taxed
Healthcare ranking: 26th
Cost of living index: 91.3
Georgia combines affordability with generous tax breaks, giving retirees plenty of financial breathing room.
3: Alabama
Social Security: Not taxed
Healthcare ranking: 34th
Cost of living index: 88.0
Alabama boasts one of the lowest living costs in the nation, making it highly attractive for retirees despite weaker healthcare.
Carol M. Highsmith, Wikimedia Commons
2: South Dakota
Social Security: Not taxed
Healthcare ranking: 8th
Cost of living index: 92.2
South Dakota checks nearly every box: affordable living, excellent healthcare, and no income or Social Security taxes.
1: Wyoming
Social Security: Not taxed
Healthcare ranking: 12th
Cost of living index: 95.5
With no income tax, low costs, and strong healthcare, Wyoming takes the crown as the best state for retirement in 2025.
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