20 Best States for Retirees Based on Cost of Living
Looking to stretch your retirement dollars? These 20 states offer the best bang for your buck with low costs, tax-friendly perks, and a high quality of life—so you can relax without breaking the bank!
- Alyana Aguja
- 6 min read
Retirement is supposed to be that time in your life where you can enjoy yourself free from all financial stress and finding the right place to settle can make all the difference. These 20 states stand out in regard to affordable cost of living, tax breaks for retirees, and vibrant communities. These things offer a perfect balance between relaxation and practicality. Whether you like coastal charm, mountain serenity, or small-town tranquility, these destinations will let you live comfortably while keeping your budget in order.
1. Mississippi
Mississippi Department of Archives and History from Wikipedia
With one of the lowest living costs in the country, Mississippi offers retirees an affordable cost of housing, groceries, and health care. The state doesn’t tax Social Security benefits, thus keeping more of your hard-earned money. The warm climate and Southern charm make it very inviting to relocate to.
2. Arkansas
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Arkansas has low property taxes and is well below the national average cost of living. Cities like Hot Springs offer breathtaking scenery and comfortable hot springs to relax. These factors make Arkansas a great spot for retirement: outdoor recreation blended with quiet communities.
3. Oklahoma
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Oklahoma has a cost of living well below the U.S. average, with affordable housing and health care. The senior community in Oklahoma is strong, and many towns have great retiree-friendly amenities. Mild winters and friendly residents make it comfortable in every aspect for one to settle down.
4. Missouri
Marie Watkins Oliver from Wikipedia
Missouri offers an urban and rural combination at a reasonable price. The cost of healthcare is below the national average, and most retirees do not have to pay taxes on their Social Security benefits. It offers beautiful lakes and city life, like in Kansas City and St. Louis.
5. Tennessee
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With no state income tax and a pretty low cost of living, Tennessee is a real moneymaker for retirees. Affordable housing, accessible health services, especially in Nashville and Knoxville, mild winters, and the music make it a well-rounded state to consider.
6. West Virginia
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West Virginia has one of the lowest costs of living in the United States, particularly when it comes to housing. Its beautiful Appalachian Mountains offer countless opportunities for outdoor pursuits. It has a more leisurely pace, ideal for a retiree desiring quietude.
7. Kentucky
Commonwealth of Kentucky from Wikipedia
Low property taxes and low housing costs make Kentucky attractive for retirees. While it’s synonymous with bourbon and horse racing, its scenic countryside and quaint towns hold appeal for visitors, too. It also holds healthcare below the national average cost, making it practical.
8. Alabama
Steve Hall from Wikipedia
Alabama offers a low cost of living, warm weather, and a tax-friendly policy for retirees. It does not tax Social Security benefits, and property taxes in the state are among the lowest in the country. Beach lovers can find affordable coastal living in places like Gulf Shores.
9. Georgia
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Tax breaks for pensions and Social Security benefits are afforded to retirees in Georgia. The cost of living is relatively low, and such cities as Savannah and Athens have a charming combination of history and entertainment. Its warm climate, combined with great healthcare, seals the deal as a perfect destination for retirement.
10. Indiana
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Indiana has low living costs, including affordable housing and reasonable healthcare. It has small towns for quiet living and a moderate cost of city living. Also, its four seasons offer excellent scenery during all months.
11. North Carolina
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Some areas of North Carolina may be pricier, but the state is pretty budget-friendly overall. The areas offer affordable mountain living and beach retirement opportunities. The area sports a mild climate and has some top-notch healthcare options in the state for those retiring here.
12. South Carolina
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Retirees enjoy a low tax burden in South Carolina, and the cost of living is affordable. Myrtle Beach and Charleston are coastal retirement options that won’t break the bank. Mild winters and beautiful landscapes also make this state a desirable place to live.
13. Louisiana
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Louisiana is extremely affordable, with low property taxes and relatively inexpensive housing. There are many cultural amenities in the cities of Lafayette and Baton Rouge, great food, and a general easy-going pace to life. The warm climate and Southern hospitality make for a very welcoming place to retire.
14. Texas
Paul B. Joiner from Wikipedia
No state income tax in Texas, combined with a relatively low cost of living, makes it attractive to retirees who want to live inexpensively. Affordable housing can be found in many smaller cities and rural areas. The warm climate and rich cultural diversity make this a vibrant choice for retirement.
15. New Mexico
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New Mexico attracts retirees with its affordability and special Southwestern charm. It has magnificent landscapes, which include deserts and mountains, excellent for people who love the outdoors. Adding to that, low property taxes and a well-managed cost of living make it really budget-friendly.
16. Michigan
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Michigan has reasonable housing, more so in small towns and rural areas. Michigan provides retirees with a lovely lakefront living without necessarily paying a pretty penny like some other states touching an ocean, both coasts included. Its major cities in Ann Arbor and Grand Rapids contain good healthcare facilities.
17. North Dakota
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Property taxes are low in North Dakota, and so is health care. Though the winters are bitter, the meager cost of living and quietness bring many retirees to this state. It has great community support, too, and crime rates are low.
18. South Dakota
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State income tax is not assessed in South Dakota. The cost of living is low, and the Black Hills offer a tranquil, beautiful place to retire. Health care is relatively inexpensive; overall, the state is very retiree-friendly.
19. Pennsylvania
Simtropolitan from Wikipedia
Pennsylvania does not tax retirement income, such as Social Security, making it a great financial choice. The state offers a mix of urban and rural options, with affordable housing in many areas. With plenty of history and cultural attractions, it’s both affordable and entertaining.
20. Nebraska
Liamgabby79 from Wikipedia
Nebraska boasts a low cost of living and extremely inexpensive housing. Communities are friendly, and crime rates are low. It can be cold during winter, but retirees enjoy good healthcare and a very relaxed lifestyle.