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.
- 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 col index
| # | State | Income Tax | Property Tax | COL Index | Home Insurance | Calculator |
|---|---|---|---|---|---|---|
| 1 | Mississippi | 4.00% | 0.58% | 83.3 | $1,907 | Retirement Calculator |
| 2 | West Virginia | 4.58% | 0.51% | 84.1 | $1,113 | Retirement Calculator |
| 3 | Kansas | 5.70% | 1.21% | 86.3 | $1,583 | Retirement Calculator |
| 4 | Oklahoma | 4.50% | 0.79% | 86.6 | $2,268 | Retirement Calculator |
| 5 | Alabama | 5.00% | 0.37% | 88.1 | $1,748 | Retirement Calculator |
| 6 | Arkansas | 3.70% | 0.56% | 89 | $1,740 | Retirement Calculator |
| 7 | Tennessee | 0.00% | 0.52% | 89.7 | $1,492 | Retirement Calculator |
| 8 | Missouri | 4.70% | 0.89% | 89.8 | $1,668 | Retirement Calculator |
| 9 | Iowa | 3.80% | 1.33% | 90.1 | $1,268 | Retirement Calculator |
| 10 | Kentucky | 3.50% | 0.74% | 90.3 | $1,359 | Retirement Calculator |
| 11 | Indiana | 2.95% | 0.76% | 90.5 | $1,191 | Retirement Calculator |
| 12 | Nebraska | 4.55% | 1.44% | 90.8 | $1,869 | Retirement Calculator |
| 13 | Ohio | 3.50% | 1.36% | 90.8 | $995 | Retirement Calculator |
| 14 | Louisiana | 3.00% | 0.55% | 91.1 | $2,603 | Retirement Calculator |
| 15 | Michigan | 4.25% | 1.19% | 91.4 | $1,056 | Retirement Calculator |
| 16 | North Dakota | 1.95% | 0.92% | 92.5 | $1,325 | Retirement Calculator |
| 17 | South Dakota | 0.00% | 1.00% | 92.6 | $1,756 | Retirement Calculator |
| 18 | Wisconsin | 7.65% | 1.32% | 93.3 | $957 | Retirement Calculator |
| 19 | Georgia | 5.19% | 0.79% | 93.4 | $1,655 | Retirement Calculator |
| 20 | Texas | 0.00% | 1.40% | 93.9 | $2,397 | Retirement Calculator |
| 21 | New Mexico | 5.90% | 0.63% | 94.6 | $1,322 | Retirement Calculator |
| 22 | South Carolina | 5.21% | 0.49% | 95 | $1,571 | Retirement Calculator |
| 23 | North Carolina | 3.99% | 0.66% | 95.1 | $1,621 | Retirement Calculator |
| 24 | Wyoming | 0.00% | 0.53% | 95.2 | $1,596 | Retirement Calculator |
| 25 | Illinois | 4.95% | 1.88% | 96.4 | $1,343 | Retirement Calculator |
| 26 | Minnesota | 9.85% | 1.00% | 96.8 | $1,774 | Retirement Calculator |
| 27 | Idaho | 5.80% | 0.50% | 97.7 | $1,002 | Retirement Calculator |
| 28 | Pennsylvania | 3.07% | 1.26% | 98.7 | $1,120 | Retirement Calculator |
| 29 | Utah | 4.65% | 0.48% | 101.3 | $937 | Retirement Calculator |
| 30 | Delaware | 6.60% | 0.54% | 101.5 | $1,103 | Retirement Calculator |
| 31 | Montana | 5.65% | 0.61% | 101.6 | $1,639 | Retirement Calculator |
| 32 | Arizona | 2.50% | 0.48% | 102.2 | $1,018 | Retirement Calculator |
| 33 | Florida | 0.00% | 0.78% | 102.8 | $2,677 | Retirement Calculator |
| 34 | Virginia | 5.75% | 0.78% | 103.7 | $1,332 | Retirement Calculator |
| 35 | Nevada | 0.00% | 0.50% | 104.2 | $948 | Retirement Calculator |
| 36 | Colorado | 4.40% | 0.50% | 105.1 | $2,079 | Retirement Calculator |
| 37 | Rhode Island | 5.99% | 1.12% | 107.8 | $2,074 | Retirement Calculator |
| 38 | Maine | 7.15% | 0.98% | 109.4 | $1,077 | Retirement Calculator |
| 39 | Washington | 0.00% | 0.75% | 110.7 | $1,151 | Retirement Calculator |
| 40 | New Hampshire | 0.00% | 1.50% | 112.6 | $1,188 | Retirement Calculator |
| 41 | Connecticut | 6.99% | 1.54% | 112.8 | $1,814 | Retirement Calculator |
| 42 | Oregon | 9.90% | 0.81% | 113.1 | $893 | Retirement Calculator |
| 43 | Vermont | 8.75% | 1.51% | 114.5 | $1,109 | Retirement Calculator |
| 44 | New Jersey | 10.75% | 1.88% | 115.2 | $1,417 | Retirement Calculator |
| 45 | Maryland | 5.75% | 0.92% | 115.4 | $1,392 | Retirement Calculator |
| 46 | New York | 10.90% | 1.30% | 123.8 | $1,628 | Retirement Calculator |
| 47 | Alaska | 0.00% | 0.94% | 125.9 | $1,129 | Retirement Calculator |
| 48 | Massachusetts | 9.00% | 1.00% | 135 | $1,871 | Retirement Calculator |
| 49 | California | 13.30% | 0.70% | 142.2 | $1,492 | Retirement Calculator |
| 50 | Hawaii | 11.00% | 0.29% | 193.3 | $1,431 | 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.
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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.