#1 Tennessee
99
- COLI: 89.7
- Income tax: 0%
- Property tax: 0.56% effective
- Social Security: Not taxed
- Median home: $298,500
- Avg high temp: 70°F / Avg low: 48°F
- Hospitals per 100k: 1.8
Best States to Retire in 2026
A composite ranking that weights what retirees actually care about: low cost, friendly taxes on retirement income, accessible healthcare, and a tolerable climate. Florida is still good, but it's not the obvious winner anymore.
Cost of living: 40%Tax-friendliness: 30%Healthcare access: 20%Climate: 10%
The 2026 ranking
Top 10 states for retirement
| Rank | State | Composite | COLI | Tax score | Health score | Median home | Tax notes |
|---|---|---|---|---|---|---|---|
| #1 | Tennessee | 99 | 89.7 | 100 | 78 | $298,500 | No income tax. No SS tax. |
| #2 | Wyoming | 97 | 95.8 | 100 | 89 | $298,500 | No income tax. No SS tax. |
| #3 | North Dakota | 97 | 94.5 | 95 | 96 | $248,500 | No income tax. No SS tax. |
| #4 | South Dakota | 97 | 95.2 | 95 | 91 | $285,400 | No income tax. No SS tax. |
| #5 | Arkansas | 94 | 86.0 | 75 | 84 | $192,800 | Income 2-4.4%. No SS tax. |
| #6 | Kentucky | 93 | 87.5 | 65 | 92 | $198,500 | Income 4%. No SS tax. |
| #7 | West Virginia | 92 | 84.1 | 60 | 94 | $145,600 | Income 2.36-5.12%. Taxes SS. |
| #8 | Mississippi | 92 | 83.3 | 75 | 73 | $162,100 | Income 0-5%. No SS tax. |
| #9 | Nevada | 92 | 104.2 | 100 | 74 | $435,600 | No income tax. No SS tax. |
| #10 | Iowa | 92 | 89.0 | 65 | 96 | $208,700 | Income 4.4-5.7%. No SS tax. |
Top 5 deep dive
Why these states win
#2 Wyoming
97
- COLI: 95.8
- Income tax: 0%
- Property tax: 0.56% effective
- Social Security: Not taxed
- Median home: $298,500
- Avg high temp: 52°F / Avg low: 28°F
- Hospitals per 100k: 4.5
#3 North Dakota
97
- COLI: 94.5
- Income tax: 0% (eff. 2025)
- Property tax: 0.94% effective
- Social Security: Not taxed
- Median home: $248,500
- Avg high temp: 48°F / Avg low: 24°F
- Hospitals per 100k: 4.2
#4 South Dakota
97
- COLI: 95.2
- Income tax: 0%
- Property tax: 1.14% effective
- Social Security: Not taxed
- Median home: $285,400
- Avg high temp: 52°F / Avg low: 28°F
- Hospitals per 100k: 3.8
#5 Arkansas
94
- COLI: 86.0
- Income tax: 2-4.4%
- Property tax: 0.57% effective
- Social Security: Not taxed
- Median home: $192,800
- Avg high temp: 73°F / Avg low: 50°F
- Hospitals per 100k: 2.2
Social Security treatment
States that tax Social Security
Most states don't tax Social Security at all. The states that do typically apply exemptions or partial taxation; check current state rules for your specific income.
| State | Income tax range | COLI |
|---|---|---|
| Connecticut | 3-6.99% | 112.8 |
| Kansas | 3.1-5.7% | 84.8 |
| Minnesota | 5.35-9.85% | 97.1 |
| Nebraska | 2.46-5.84% | 90.8 |
| Utah | 4.65% | 103.5 |
| Vermont | 3.35-8.75% | 114.5 |
| West Virginia | 2.36-5.12% | 84.1 |
States to think twice about
Bottom 5 for retirees
High costs, high taxes on retirement income, or both. Not necessarily bad places to retire, but they require more assets to do comfortably.
| State | Composite | COLI | Why it ranks low |
|---|---|---|---|
| Hawaii | 51 | 193.3 | Very high cost of living. |
| California | 68 | 142.2 | Very high cost of living. |
| Massachusetts | 69 | 148.4 | Very high cost of living. |
| Vermont | 73 | 114.5 | Taxes Social Security. High property tax. |
| Connecticut | 73 | 112.8 | Taxes Social Security. High property tax. |
Frequently Asked
Retirement, answered
What are the best states for retirees?
Tennessee, Florida, and South Dakota top our composite ranking, which weights cost of living (40%), tax-friendliness for retirement income (30%), healthcare access (20%), and climate (10%). All three combine no state income tax, no tax on Social Security, and below-average cost of living. Wyoming and Texas round out the top five.
Which states do not tax Social Security?
43 states do not tax Social Security: most of the country. The states that still do, with various exemptions, are Connecticut, Kansas, Minnesota, Nebraska, Utah, Vermont, West Virginia. Many of those have phased out the tax in recent years; check current rules before assuming.
What's the cheapest state to retire in?
Mississippi has the lowest absolute cost of living, but our composite ranking favours Tennessee. Tennessee combines a low cost of living (index 89.7), no state income tax at all, no tax on Social Security or other retirement income, and reasonable healthcare access. Mississippi has lower healthcare scores, which matters more in retirement than at any other life stage.
Is Florida still the best retirement state?
It's a strong choice but no longer obviously dominant. Florida has no income tax, no estate or inheritance tax, mild winters, and broad Medicare Advantage coverage. The catch: housing has risen sharply since 2021, hurricane insurance premiums have climbed, and Medicaid was not expanded, so the uninsured rate is high. For retirees on fixed incomes, Tennessee, Wyoming, and South Dakota now compete.
What states should retirees avoid?
Our bottom five are Hawaii, California, Massachusetts, Vermont, Connecticut. Hawaii is dramatically expensive. New York and California have high taxes on retirement income alongside elevated costs. Vermont has high property taxes and taxes Social Security. New Jersey has the highest property tax in the country. None are necessarily bad places to retire if your assets and lifestyle suit them, but they require more money to do well.