Best States for Retirement
The best retirement states combine low taxes, affordable living, and reasonable healthcare costs. Below are all 50 states scored by a retirement-friendliness index based on income tax, property tax, cost of living, and insurance costs.
- Mississippi ranks #1 with the lowest col index at 83.3.
- Hawaii ranks last at 193.3 — the highest among all states.
- The top 5 states are Mississippi, West Virginia, Kansas, Oklahoma, Alabama.
- All data is sourced from verified government databases and updated for 2026.
Top 3 States
All 50 States Ranked
Lowest to highest by col index
| # | State | Income Tax | Property Tax | COL Index | Home Insurance | Calculator |
|---|---|---|---|---|---|---|
| 1 | Mississippi | 5.00% | 0.81% | 83.3 | $2,510 | Retirement Calculator |
| 2 | West Virginia | 5.12% | 0.58% | 84.1 | $1,450 | Retirement Calculator |
| 3 | Kansas | 5.70% | 1.41% | 86.3 | $2,900 | Retirement Calculator |
| 4 | Oklahoma | 4.75% | 0.90% | 86.6 | $3,300 | Retirement Calculator |
| 5 | Alabama | 5.00% | 0.41% | 88.1 | $2,320 | Retirement Calculator |
| 6 | Arkansas | 4.40% | 0.62% | 89 | $2,600 | Retirement Calculator |
| 7 | Tennessee | 0.00% | 0.71% | 89.7 | $2,240 | Retirement Calculator |
| 8 | Missouri | 4.80% | 0.97% | 89.8 | $2,200 | Retirement Calculator |
| 9 | Iowa | 3.90% | 1.57% | 90.1 | $2,020 | Retirement Calculator |
| 10 | Kentucky | 4.00% | 0.86% | 90.3 | $2,400 | Retirement Calculator |
| 11 | Indiana | 3.05% | 0.85% | 90.5 | $1,540 | Retirement Calculator |
| 12 | Nebraska | 5.84% | 1.73% | 90.8 | $3,050 | Retirement Calculator |
| 13 | Ohio | 3.50% | 1.56% | 90.8 | $1,470 | Retirement Calculator |
| 14 | Louisiana | 4.25% | 0.55% | 91.1 | $3,200 | Retirement Calculator |
| 15 | Michigan | 4.25% | 1.38% | 91.4 | $1,820 | Retirement Calculator |
| 16 | North Dakota | 1.95% | 0.98% | 92.5 | $2,050 | Retirement Calculator |
| 17 | South Dakota | 0.00% | 1.17% | 92.6 | $2,800 | Retirement Calculator |
| 18 | Wisconsin | 7.65% | 1.53% | 93.3 | $1,380 | Retirement Calculator |
| 19 | Georgia | 5.39% | 0.92% | 93.4 | $2,050 | Retirement Calculator |
| 20 | Texas | 0.00% | 1.80% | 93.9 | $3,600 | Retirement Calculator |
| 21 | New Mexico | 5.90% | 0.80% | 94.6 | $1,780 | Retirement Calculator |
| 22 | South Carolina | 6.40% | 0.57% | 95 | $2,650 | Retirement Calculator |
| 23 | North Carolina | 4.25% | 0.84% | 95.1 | $2,180 | Retirement Calculator |
| 24 | Wyoming | 0.00% | 0.61% | 95.2 | $1,450 | Retirement Calculator |
| 25 | Illinois | 4.95% | 2.07% | 96.4 | $1,780 | Retirement Calculator |
| 26 | Minnesota | 9.85% | 1.12% | 96.8 | $1,980 | Retirement Calculator |
| 27 | Idaho | 5.80% | 0.69% | 97.7 | $1,380 | Retirement Calculator |
| 28 | Pennsylvania | 3.07% | 1.58% | 98.7 | $1,380 | Retirement Calculator |
| 29 | Utah | 4.65% | 0.63% | 101.3 | $1,200 | Retirement Calculator |
| 30 | Delaware | 6.60% | 0.57% | 101.5 | $1,150 | Retirement Calculator |
| 31 | Montana | 5.90% | 0.84% | 101.6 | $2,200 | Retirement Calculator |
| 32 | Arizona | 2.50% | 0.62% | 102.2 | $2,080 | Retirement Calculator |
| 33 | Florida | 0.00% | 0.89% | 102.8 | $4,200 | Retirement Calculator |
| 34 | Virginia | 5.75% | 0.82% | 103.7 | $1,550 | Retirement Calculator |
| 35 | Nevada | 0.00% | 0.60% | 104.2 | $1,470 | Retirement Calculator |
| 36 | Colorado | 4.40% | 0.51% | 105.1 | $2,820 | Retirement Calculator |
| 37 | Rhode Island | 5.99% | 1.63% | 107.8 | $2,050 | Retirement Calculator |
| 38 | Maine | 7.15% | 1.20% | 109.4 | $1,380 | Retirement Calculator |
| 39 | Washington | 0.00% | 0.87% | 110.7 | $1,420 | Retirement Calculator |
| 40 | New Hampshire | 0.00% | 1.86% | 112.6 | $1,280 | Retirement Calculator |
| 41 | Connecticut | 6.99% | 2.14% | 112.8 | $1,750 | Retirement Calculator |
| 42 | Oregon | 9.90% | 0.97% | 113.1 | $1,200 | Retirement Calculator |
| 43 | Vermont | 8.75% | 1.90% | 114.5 | $1,280 | Retirement Calculator |
| 44 | New Jersey | 10.75% | 2.23% | 115.2 | $1,360 | Retirement Calculator |
| 45 | Maryland | 5.75% | 1.09% | 115.4 | $1,650 | Retirement Calculator |
| 46 | New York | 10.90% | 1.72% | 123.8 | $1,640 | Retirement Calculator |
| 47 | Alaska | 0.00% | 1.04% | 125.9 | $1,350 | Retirement Calculator |
| 48 | Massachusetts | 9.00% | 1.23% | 135 | $1,750 | Retirement Calculator |
| 49 | California | 13.30% | 0.76% | 142.2 | $1,950 | Retirement Calculator |
| 50 | Hawaii | 11.00% | 0.28% | 193.3 | $1,250 | Retirement Calculator |
Methodology
How we collected and ranked the data
Retirement score = weighted combination of: no income tax (+30pts), low property tax (+20pts), low COL (+25pts), low home insurance (+15pts), high unemployment benefits (+10pts). Lower score = more retirement-friendly.
Get Weekly Financial Insights
State-specific tax updates, calculator tips, and money-saving strategies — free, no spam.
No spam, ever. Unsubscribe anytime. We respect your privacy.
Compare Two States
Compare taxes, housing, cost of living, and more between any two states.
View all 107 state comparisonsFrequently Asked Questions
What is the best state to retire in?
It depends on your priorities. For low taxes: Florida, Texas, Wyoming, Nevada (no income tax). For low cost of living: Mississippi, Oklahoma, Arkansas. For weather: Florida, Arizona, South Carolina.
Do all states tax retirement income?
No. Nine states have no income tax at all. Several others exclude Social Security, pensions, or other retirement income from taxation.