The latest property tax bill arrives, and you find yourself staring at the number. Perhaps it is the cost of heating a four-bedroom house through another brutal winter, or maybe the realization that your retirement savings could stretch much further if you just lived somewhere else. Every year, thousands of Americans hit this exact turning point.
Deciding where to spend your post-career years requires balancing emotion with hard math. You want close proximity to family and friends, but you also need to protect your nest egg from heavy taxation and rising living costs. As we look toward 2027, the map of ideal retirement destinations has shifted. Surging home insurance premiums in coastal areas, changing state tax laws, and regional inflation have altered the landscape of retiree relocation.
Whether you are seeking an affordable retirement built around outdoor recreation or prioritizing access to top-tier medical facilities, finding the right home base is crucial. We evaluated all 50 states based on tax friendliness, healthcare quality, housing affordability, and overall lifestyle to bring you the top destinations for your next chapter.
The Bottom Line Up Front
- Tax strategy matters: Nine states levy no income tax, but you must weigh this against property and sales tax rates to find your true retirement cost of living.
- Healthcare access is non-negotiable: A low-cost state is only a good deal if it provides reliable, accessible medical care and accepts your insurance network.
- Climate costs are rising: Traditional sunbelt favorites are seeing massive spikes in property insurance, making mid-Atlantic and midwestern states more financially attractive.
How We Ranked the Best States to Retire
A great vacation spot does not automatically make a great retirement home. To build this 2027 guide, we looked past the glossy tourism brochures and focused on the practical metrics that dictate your daily quality of life.
First, we analyzed the financial impact. Tax-friendly states offer specific exemptions for Social Security benefits, pensions, and 401(k) withdrawals. Second, we assessed healthcare infrastructure, measuring the number of primary care physicians per capita and the presence of highly rated hospital systems. Finally, we looked at community vitality—states with growing, active senior populations that offer robust cultural, recreational, and volunteer opportunities.
“Don’t simply retire from something; have something to retire to.” — Harry Emerson Fosdick
The Top 10 Retirement Destinations for 2027
1. South Carolina: The New Southern Standard
South Carolina captures the top spot by offering the coastal charm of Florida without the extreme insurance premiums or intense crowding. The Palmetto State has aggressively courted retirees with highly favorable tax policies. The state does not tax Social Security benefits, and residents over 65 can claim a generous $15,000 deduction on other types of retirement income.
From the historic streets of Charleston to the golf communities of Hilton Head and the quiet foothills of Greenville, South Carolina provides diverse living environments. The winters are mild, the cost of living hovers slightly below the national average, and property taxes remain incredibly low.
2. Delaware: The East Coast Tax Haven
Often overlooked in favor of its larger neighbors, Delaware is a financial fortress for retirees. It features zero state sales tax, exempts Social Security benefits from state income tax, and boasts some of the lowest property taxes in the nation. For retirees moving from high-tax states like New Jersey or New York, crossing the border into Delaware feels like getting an immediate pay raise.
Healthcare access is excellent, with proximity to world-class facilities in Philadelphia and Baltimore. Communities in Sussex County, particularly near Rehoboth Beach, have developed into vibrant, walkable havens for active adults.
3. Pennsylvania: The Healthcare and Pension Powerhouse
If you have built substantial savings in a 401(k), IRA, or traditional pension, Pennsylvania demands your attention. The Keystone State does not tax retirement income. Period. Once you reach age 59 and a half, withdrawals from your retirement accounts are entirely state tax-free.
Beyond the immense tax advantages, Pennsylvania offers incredible healthcare networks, particularly around Philadelphia and Pittsburgh. While property taxes can be high in certain counties, the overall housing market remains highly accessible, and the distinct four seasons appeal to those who do not want endless summer heat.
4. Wyoming: The Frontier of Financial Freedom
For retirees who prefer mountain vistas over sandy beaches, Wyoming is an unmatched destination. It ranks among the most tax-friendly states in America, boasting no state income tax, low sales tax, and low property taxes. Your money simply goes further here.
Wyoming is ideal for the adventurous retiree. While the winters require resilience and healthcare services can be spread out in rural areas, towns like Cody, Sheridan, and Cheyenne offer tight-knit communities, clean air, and an incredibly low crime rate.
5. Florida: The Heavyweight Champion (With Caveats)
Florida remains a dominant force in retiree relocation, continuing to attract hundreds of thousands of seniors with its zero state income tax and year-round sunshine. The state’s infrastructure is entirely geared toward the 55-plus demographic, offering unmatched specialized medical care, endless golf courses, and massive master-planned communities.
However, Florida slips to number five for 2027 due to the skyrocketing cost of homeownership. Property insurance premiums have surged, and the cost of living in popular areas like Naples, Sarasota, and Miami is increasingly out of reach for middle-class retirees. Florida is still brilliant, but it requires a larger budget than it did a decade ago.
6. Tennessee: The Musical Middle Ground
Tennessee hits all the right notes for affordability. The state levies no income tax and features a cost of living roughly 10 percent below the national average. Whether you choose the bustling energy of Nashville, the scenic beauty of Chattanooga, or the mountain serenity of the Great Smoky Mountains, your dollar stretches beautifully here.
The state has seen a massive influx of retirees, which has spurred the development of new healthcare facilities and senior-centric amenities. The climate offers four distinct seasons, though winters remain generally mild.
7. South Dakota: The Under-the-Radar Gem
You might not immediately think of South Dakota for retirement, but financial experts certainly do. With no state income tax and a remarkably low cost of living, it is a haven for those looking to maximize a fixed income. More importantly, South Dakota regularly scores in the top tier nationally for healthcare access and quality of care per capita.
Cities like Sioux Falls and Rapid City offer excellent amenities, safe neighborhoods, and robust community engagement programs. If you can handle the winter snow, South Dakota rewards you with a stress-free, highly affordable retirement.
8. Arizona: The Desert Oasis
Arizona practically invented the modern retirement community and remains a powerhouse destination. The dry heat is legendary for relieving joint pain, and the state offers an incredible array of outdoor activities geared toward active adults. Arizona does not tax Social Security benefits, though it does tax other retirement income at a relatively low flat rate.
While Phoenix and Scottsdale have become expensive, areas like Tucson, Prescott, and Green Valley offer excellent value. The healthcare infrastructure is highly developed, with specialized geriatric care centers throughout the state.
9. Nevada: The Sunny Tax Shelter
Beyond the glow of the Las Vegas strip lies a state practically designed for retirees looking to shield their assets. Nevada has no state income tax, no estate tax, and no inheritance tax. The climate is dry, keeping utility bills predictable, though summers are intensely hot.
Communities in Henderson and Reno offer distinct, high-quality living experiences far removed from the casino culture. The proximity to world-class entertainment and dining means you will never run out of things to do, or places to take visiting grandchildren.
10. North Carolina: The Four-Season Compromise
North Carolina provides the perfect balance for retirees who find Florida too hot and New York too cold. The state features beautiful mountains in the west, stunning beaches in the east, and thriving intellectual hubs in the Research Triangle. The state taxes retirement income at a flat rate, but exempts Social Security benefits entirely.
Towns like Asheville, Winston-Salem, and Wilmington offer vibrant arts scenes, excellent medical centers, and a cost of living that, while rising, remains highly competitive compared to northern states.
Comparing the Top 5 States
To help you visualize the differences, here is a quick comparison of our top five retirement destinations based on key financial metrics.
| State | State Income Tax | Social Security Tax | Median Home Cost Vibe | Best Feature |
|---|---|---|---|---|
| South Carolina | Up to 6.4% (with big exemptions) | Exempt | Moderate | Coastal living value |
| Delaware | Up to 6.6% | Exempt | Moderate to High | Zero sales tax |
| Pennsylvania | 3.07% (Flat rate) | Exempt | Affordable to Moderate | Zero tax on pensions/401(k) |
| Wyoming | 0% | Exempt | Moderate | Low property taxes |
| Florida | 0% | Exempt | High (including insurance) | No state income tax |
Don’t Make These Relocation Mistakes
Moving across state lines in your sixties or seventies involves significant logistical and financial hurdles. Avoid these common pitfalls that trip up even the most prepared retirees.
Mistake 1: Forgetting the Medicare Network Trap
If you are enrolled in Original Medicare (Parts A and B) and have a Medigap policy, you can generally see any doctor in the country who accepts Medicare. However, if you are enrolled in a Medicare Advantage (Part C) plan, your coverage is highly regional. Moving to a new state—or even a new county—often means you must drop your current plan and find a new one. Do not assume your favorite national insurance carrier offers the same network in rural Wyoming as they do in suburban Chicago. You can compare local plan availability using the official Medicare Plan Finder.
Mistake 2: Confusing a Vacation Vibe with Daily Living
Spending two weeks at a beachfront resort in August feels entirely different than managing a household there year-round. Tourists do not have to worry about finding a reliable cardiologist, navigating local traffic during rush hour, or dealing with the state’s Department of Motor Vehicles. Always rent a home in your target destination for at least a month—preferably during its worst weather season—before committing to a purchase.
Mistake 3: Looking Only at the Income Tax Rate
Many retirees fixate blindly on states with no income tax. While keeping your income untaxed is great, states have to fund their roads, schools, and emergency services somehow. They often make up the difference through aggressive sales taxes, high vehicle registration fees, or steep property taxes. Look at the total tax burden, not just one category. You can explore how different retirement plans and distributions are taxed at the federal level via the IRS Retirement Plans portal to understand your baseline before state taxes apply.
When Professional Advice Is Worth It
Changing your state of residence alters your entire legal and financial framework. It is rarely as simple as packing a moving truck and updating your address at the post office.
You should strongly consider hiring a fee-only financial planner and an elder law attorney before you move. Why? Because establishing “domicile” (your legal, permanent home for tax purposes) requires specific steps. If you move from a high-tax state like New York to a low-tax state like Florida but keep a property up north, your former state might audit you, claiming you still owe them income tax.
Furthermore, your estate plan needs immediate attention when you move. Wills, trusts, and advance healthcare directives are governed by state law. A power of attorney drafted in Illinois might not be smoothly accepted by a hospital in Arizona. An elder law attorney in your new state can ensure your documents protect you exactly as intended.
You should also tap into free, unbiased resources. Before making a final decision, use the AARP Livability Index to score specific neighborhoods based on housing, transportation, and neighborhood metrics designed specifically for aging adults.
Frequently Asked Questions (FAQ)
Does my Social Security benefit amount change if I move to a cheaper state?
No. Your base Social Security benefit is calculated using your lifetime earnings record and the age at which you claim benefits. Moving to a state with a lower cost of living will not reduce your monthly federal check. In fact, moving to a cheaper state is a great way to make your existing benefit stretch further. However, keep in mind that state taxes on that benefit will vary depending on where you move.
What is the absolute cheapest state to retire in?
If you look strictly at the raw cost of living indices (housing, groceries, utilities, and transportation), states like Mississippi, Arkansas, and West Virginia consistently rank as the cheapest. However, we rarely place them at the top of retirement lists because they often struggle with healthcare accessibility, infrastructure, and overall senior well-being metrics.
Can I keep my current doctors if I move out of state?
Generally, no, unless you are willing to travel back to your old state for routine appointments. If you are on Original Medicare, you can see any doctor nationwide who accepts it. But practically speaking, you will need to establish a new local network of primary care and specialist physicians. Research the medical infrastructure in your target zip code before buying a home.
How long do I have to live in a state for it to be considered my legal residence?
The “183-day rule” is the standard benchmark; you generally need to spend more than half the year (183 days) in a state to claim it as your domicile. However, high-tax states look at much more than just a calendar. They will check where your car is registered, where you are registered to vote, where your primary doctors are located, and where your primary bank accounts are held to verify your true residence.
Your Next Step Toward a Better Retirement
Finding the perfect state for your retirement is an exciting journey, not a race. You now have a roadmap of the states offering the best blend of financial security, healthcare access, and quality of life for 2027. Your next move is practical: pick your top two destinations and book an extended stay.
Rent an Airbnb in a regular residential neighborhood—not a tourist district. Go to the local grocery store, drive past the regional hospital, and visit the community center. You will know within a few weeks if a state looks as good in reality as it does on a spreadsheet.
Retirement rules, tax brackets, and Medicare network availability vary based on individual work history, income, and circumstances. This article provides general guidance only. Consult a SHIP counselor, fee-only financial advisor, or elder law attorney for advice specific to your situation.
Last updated: February 2026. Medicare and Social Security rules change annually—always verify current details at official government sources.
