Best States to Retire for Taxes, Climate and Activities
When you retire, you’re no longer tied to a location by your employer. That freedom opens an exciting question: Where do you really want to live? Depending on your financial situation, lifestyle preferences, and personal goals, you might find that another state fits your ideal retirement life better than where you are now.
Let’s take a look at some of the best states to retire—based on taxes, weather, things to do, and other perks. Whether you’re prepping for the big “R” or already in it, you might discover a spot that feels just right.
9 Best States to Retire
1. Alabama
Alabama offers that classic Southern charm and a slower pace of life that appeals to many retirees. But if you want more buzz, Birmingham offers a cosmopolitan contrast. Alabama ranks 19th in the country for percentage of senior residents.
From a financial perspective, it’s one of the more tax-friendly states for retirees: Social Security benefits aren't taxed, and there are property tax breaks for older adults. That said, the state does have income tax and sales tax, including on groceries, bringing the total rate to around 9.15%.
2. Delaware
Delaware offers a comfortable environment for retirees, boasting a moderate climate that experiences all four seasons without any extremes. With a moderate climate and a coastline full of charming beach towns like Rehoboth, Bethany, Dewey, and Lewes, Delaware is a relaxing yet vibrant place to settle down. It ranks 7th in the U.S. for senior population.
Delaware is another one of the most tax friendly states for retirees, since it also does not tax Social Security benefits and offers property tax breaks to seniors. Delaware is also one of only five states that do not have a sales tax, along with Alaska, Montana, New Hampshire, and Oregon. Additionally, there is no tax on inheritances and estates, making it a strong financial win.
3. Florida
It's no surprise Florida made the list of the most tax friendly states for retirees. Warm weather, beautiful beaches, and a golf lover’s paradise (with over 1,000 courses) make this a retirement hot spot. Whether it’s the East Coast, Gulf Coast, or South Florida, you’ve got options, and your family will probably be excited to visit.
There’s no state income tax in Florida, so Social Security, pensions, and other retirement income aren’t taxed at all. There is no inheritance or estate tax either. That, combined with year-round sunshine, makes it one of the top states to retire.
4. Georgia
Georgia offers a little bit of everything: mild winters, lively cities like Atlanta, and plenty of charming small towns. Whether you’re into arts and culture, history, or outdoor recreation, you’ll find something that suits you. In fact, Atlanta is a magnet for transplants—37% of residents aren’t originally from Georgia, making it a dynamic, welcoming place for newcomers from all over.
It’s also a pretty good state for retirees financially. Social Security isn’t taxed, and there are deductions for other forms of retirement income. Income tax tops out at 6.8%, and while some areas do tax groceries, many don’t. Estate taxes? None.
5. Maryland
Maryland is a sports lover’s paradise, with popular teams in all four major sports. The state’s famous beaches include Ocean City and Assateague Island National Seashore. The Baltimore Aquarium, Camden Yards, the Chesapeake Bay, and Annapolis make the state a popular tourist destination. With an award-winning public transportation system, retirees can easily access everything Maryland has to offer.
While Maryland isn't the best state to retire for taxes, since pensions and 401(k) withdrawals are subject to state income tax, it does exempt Social Security benefits. Its progressive income tax tops out at 5.75%, and although there is an estate tax, the exemption threshold is relatively high.
6. New Jersey
New Jersey is another popular destination for retirees. Those who enjoy gambling will appreciate Atlantic City and the renaissance it’s currently experiencing. And its beaches, made famous by the Monopoly board game, are still extremely popular recreation destinations. You also gain easy access to Philadelphia and New York City. The state ranks 28th in percentage of seniors.
When it comes to taxes, New Jersey has a few perks. Social Security isn’t taxed, and there is no estate tax. But other retirement income like pensions and 401(k) withdrawals is taxed, and the state has higher income tax rates than many others. Something to keep in mind when planning your budget.
7. North Carolina
North Carolina is a favorite for retirees thanks to its mild weather, beautiful landscapes, and welcoming communities. The Blue Ridge Mountains are a major attraction, offering stunning views and outdoor activities. The Raleigh-Durham area, known as "the Triangle" for its Research Triangle Park, is often ranked as one of the best places to live and retire in the country. The state ranks 27th in percentage of senior citizens, just ahead of New Jersey.
Like the other states on this list, North Carolina does not tax Social Security benefits. Other retirement income is taxed, but at lower rates than in many states. The state’s flat income tax rate is 5.25 percent, and there are deductions available for certain types of retirement income, including pensions from the military and from federal, state, and local governments.
8. Pennsylvania
Pennsylvania is packed with history and charm. Its biggest cities sit on opposite sides of the state—Pittsburgh in the west and Philadelphia in the east. Philly residents often say the city gives you the perks of New York without the crowds or sky-high prices. The Pocono Mountains are a favorite for year-round activities, with skiing in the winter and hiking in the summer. Pennsylvania ranks fifth in the country for the percentage of seniors living there.
When it comes to taxes, Pennsylvania is one of the most retiree-friendly states. Social Security benefits are not taxed, and there are generous exemptions for other types of retirement income, like pensions and withdrawals from retirement accounts. The state also does not tax estates or inheritances, which is a big plus for retirees and their families. Property taxes can vary depending on where you live, and Pennsylvania has a flat income tax rate of 3.07 percent for all income levels.
9. South Carolina
South Carolina is a great choice for retirees, offering warm weather, plenty of things to do, and lots of amenities. Hilton Head is a golfer’s paradise, while Myrtle Beach is known for its boardwalk, shows, and beach-town fun. Charleston is another top spot, famous for its rich history and vibrant culture. The state ranks 14th for percentage of seniors.
South Carolina does not tax Social Security benefits and gives generous retirement income deductions to residents age 65 and older. The state’s income tax rates are on the lower side, with a top rate of 7 percent. Property taxes are also pretty reasonable, and the Homestead Exemption helps lower the taxable value of your home if you qualify. All of this makes South Carolina one of the more tax-friendly states for retirees.
Best States to Retire Criteria
Choosing where to retire isn’t as simple as pointing at a map and hoping for the best. There’s a lot to think about, and making the right choice can really impact your quality of life. Here are some key things to consider when comparing states, so you can make a smart, stress-free decision.
1. Taxes
Stretching your retirement income is a big deal. That’s why many older adults look for tax-friendly states where their savings will go further. Taxes can be a major factor, especially if you don’t have kids in public schools. In states with higher taxes, that extra expense might be a deal breaker.
2. Climate
Many retirees head south for the sunshine, while others prefer the dry air of the Southwest, which can be easier on allergies or joint pain. Ask yourself whether you’re done with snow for good, or if you actually enjoy having four seasons.
3. Activities and Amenities
Think about how you like to spend your time. Are you into museums, theater, or traveling? Do you want access to good healthcare or natural beauty like beaches or mountains? States with larger senior populations often offer more services, resources, and programs geared toward retirees, so that’s something to keep in mind too.
4. Family
Family might be the most important factor of all. How close do you want to be to your children, grandkids, or other loved ones? While we can help you find a location that fits your lifestyle and budget, the final decision often comes down to how close—or far—you want to be from family.
Explore Acts Retirement-Life Communities
At the end of the day, deciding on the best state to retire is a personal choice. What’s perfect for one person might not work for someone else. That’s why it’s important to weigh all the factors and find what fits you best.
If you’re looking for a retirement community that feels like home, take a look at Acts Retirement-Life Communities. With 28 campuses across several of the top states to retire, you’re bound to find one that fits your lifestyle. Plus, with our Travel Program, residents can visit and stay at any of our communities—so your retirement can feel like a vacation whenever you want.
Good luck making your decision—we hope you find the perfect place to enjoy your next chapter.
