Best States for Social Security Recipients
Where you retire can significantly impact how much of your Social Security benefits you actually keep. Most states don't tax Social Security, and as of 2026, only 8 still do in some form. Combined with cost of living differences, the right state can save retirees thousands per year. This guide ranks states by how friendly they are to Social Security income.
- Oklahoma ranks #1 with the lowest cost of living at 83.5.
- Hawaii ranks last at 184.8 — the highest among all states.
- The top 5 states are Oklahoma, Alabama, Mississippi, Kansas, West Virginia.
- The ranking basis, source limitations, and calculation method are documented in the Methodology section below.
Top 3 States
All 50 States Ranked
Lowest to highest by cost of living
| # | State | Cost of Living | Top Income Tax | Median Income | Calculator |
|---|---|---|---|---|---|
| 1 | Oklahoma | 83.5 | 4.50% | $66,148 | Social Security Calculator |
| 2 | Alabama | 85 | 5.00% | $66,659 | Social Security Calculator |
| 3 | Mississippi | 86.2 | 4.00% | $59,127 | Social Security Calculator |
| 4 | Kansas | 87.6 | 5.58% | $75,514 | Social Security Calculator |
| 5 | West Virginia | 87.9 | 4.58% | $60,798 | Social Security Calculator |
| 6 | Indiana | 88.3 | 2.95% | $71,959 | Social Security Calculator |
| 7 | Iowa | 88.6 | 3.80% | $75,501 | Social Security Calculator |
| 8 | Missouri | 88.6 | 4.70% | $71,589 | Social Security Calculator |
| 9 | Tennessee | 88.9 | 0.00% | $71,997 | Social Security Calculator |
| 10 | Arkansas | 89.1 | 3.90% | $62,106 | Social Security Calculator |
| 11 | New Mexico | 89.9 | 5.90% | $67,816 | Social Security Calculator |
| 12 | Georgia | 90.6 | 4.99% | $79,991 | Social Security Calculator |
| 13 | North Dakota | 90.7 | 2.50% | $77,871 | Social Security Calculator |
| 14 | Texas | 90.7 | 0.00% | $79,721 | Social Security Calculator |
| 15 | Louisiana | 91.1 | 3.00% | $60,986 | Social Security Calculator |
| 16 | Nebraska | 91.3 | 4.55% | $76,376 | Social Security Calculator |
| 17 | South Carolina | 91.9 | 5.21% | $72,350 | Social Security Calculator |
| 18 | Kentucky | 92.5 | 3.50% | $64,526 | Social Security Calculator |
| 19 | Minnesota | 93.4 | 9.85% | $87,117 | Social Security Calculator |
| 20 | Ohio | 93.7 | 2.75% | $72,212 | Social Security Calculator |
| 21 | Wyoming | 93.7 | 0.00% | $75,532 | Social Security Calculator |
| 22 | Michigan | 93.9 | 4.25% | $72,389 | Social Security Calculator |
| 23 | South Dakota | 94.1 | 0.00% | $76,881 | Social Security Calculator |
| 24 | Illinois | 95.1 | 4.95% | $83,211 | Social Security Calculator |
| 25 | Pennsylvania | 96.2 | 3.07% | $77,545 | Social Security Calculator |
| 26 | North Carolina | 96.6 | 3.99% | $73,958 | Social Security Calculator |
| 27 | Wisconsin | 97.4 | 7.65% | $77,488 | Social Security Calculator |
| 28 | Virginia | 99.1 | 5.75% | $92,090 | Social Security Calculator |
| 29 | Utah | 100.6 | 4.50% | $96,658 | Social Security Calculator |
| 30 | Florida | 100.7 | 0.00% | $77,735 | Social Security Calculator |
| 31 | Nevada | 100.7 | 0.00% | $81,134 | Social Security Calculator |
| 32 | Delaware | 101.7 | 6.60% | $87,534 | Social Security Calculator |
| 33 | Idaho | 101.7 | 5.30% | $81,166 | Social Security Calculator |
| 34 | Colorado | 101.8 | 4.40% | $97,113 | Social Security Calculator |
| 35 | Montana | 105.9 | 5.65% | $75,340 | Social Security Calculator |
| 36 | Arizona | 107.6 | 2.50% | $81,486 | Social Security Calculator |
| 37 | Oregon | 109.6 | 9.90% | $85,220 | Social Security Calculator |
| 38 | New Hampshire | 110.1 | 0.00% | $99,782 | Social Security Calculator |
| 39 | Rhode Island | 111.2 | 5.99% | $83,504 | Social Security Calculator |
| 40 | Vermont | 113 | 8.75% | $82,730 | Social Security Calculator |
| 41 | Connecticut | 114.2 | 6.99% | $96,049 | Social Security Calculator |
| 42 | Maine | 114.6 | 7.15% | $76,442 | Social Security Calculator |
| 43 | Washington | 114.6 | 0.00% | $99,389 | Social Security Calculator |
| 44 | New Jersey | 118.8 | 10.75% | $104,294 | Social Security Calculator |
| 45 | Maryland | 121.1 | 6.50% | $102,905 | Social Security Calculator |
| 46 | New York | 124.7 | 10.90% | $85,820 | Social Security Calculator |
| 47 | Alaska | 129 | 0.00% | $95,665 | Social Security Calculator |
| 48 | California | 140.5 | 13.30% | $100,149 | Social Security Calculator |
| 49 | Massachusetts | 147.8 | 9.00% | $104,828 | Social Security Calculator |
| 50 | Hawaii | 184.8 | 11.00% | $100,745 | Social Security Calculator |
Methodology
How we collected and ranked the data
States ranked by cost of living index (ascending), since most states don't tax Social Security. Lower cost of living means benefits stretch further. States that DO tax Social Security are noted. Data from SSA, Tax Foundation, and Kiplinger's 2026 state-by-state tax guides.
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View all 107 state comparisonsFrequently Asked Questions
Which states don't tax Social Security?
The vast majority of states — 42 — do not tax Social Security benefits. As of 2026, only 8 states still tax Social Security in some form: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. Kansas, Missouri, and Nebraska fully repealed their Social Security taxes in recent years, and West Virginia completed its 3-year phase-out in 2026, so none of those four still tax it. Most of the remaining 8 states offer partial exemptions based on income or age.
How much can you save by retiring in a tax-friendly state?
A retiree receiving $30,000/year in Social Security could save $1,000–$3,000 annually by moving from a state that taxes benefits to one that doesn't. Combined with lower cost of living, total savings could exceed $10,000–$15,000 per year.
Is federal tax on Social Security avoidable?
Federal taxation depends on your "combined income" (AGI + nontaxable interest + half of SS benefits). If combined income exceeds $25,000 (single) or $32,000 (married), up to 50–85% of benefits may be taxable at the federal level. This applies regardless of your state.