Six of the Best States to Retire: Backed by the Latest Research & Data

There’s a lot to think about when considering where to retire. But most of us can agree that a relatively low cost of living, access to good healthcare, tax breaks, and a decent retirement lifestyle are all key metrics.

If you’re starting to plan for your golden years and are open to relocating, we introduce you to the six best states to retire in, in the United States, based on the latest available research and data.

Where to retire in the US is one of the questions our readers ask most, and the answer moves every year as tax rules, house prices and healthcare rankings shift. So rather than repeat the usual Florida-and-Arizona advice, we went to the latest 50-state data and checked what it actually says about cost of living, tax breaks and quality of life for retirees.

Our picks draw on WalletHub’s 2026 Best and Worst States to Retire study, which scored all 50 states across 46 metrics grouped into affordability, quality of life and health care, alongside research from MoneyLion, US News and Insider Monkey.

1: Pennsylvania (PA)

Best for small-town living.

A recent study by MoneyLion, published in the New York Post, has Pennsylvania as one of the best states in the United States for retirees. It looked specifically at small towns with populations ranging from 1,000 to 10,000 residents.

15 of the 50 “best” small towns for retirees are based in Pennsylvania, according to the research. It has Camp Hill and Jenkintown as number one and two, thanks to average cost-of-living figures of $43,794 and $45,821, respectively. Also in the top ten is Aspinwall, PA.

Camp Hill is home to around 8,130 people and is part of the Harrisburg-Carlisle metropolitan area. Expect tree-lined suburban streets, local amenities, and a short commute into Harrisburg, with an impressively low cost of living.

MoneyLion’s study doesn’t just take into account the cost of living, though. It also considers the average home value, and property and violent crime rate per 1,000 residents.

If you like the sound of PA, other towns in the Keystone State that made the top 20 include South Williamsport, Malvern, and Irwin.

Pennsylvania also places eighth overall in WalletHub’s 2026 ranking, with a quality-of-life score of fifth in the nation — the highest of any state on this list outside Florida. For a broader look at the state, our Pennsylvania travel guide covers what’s worth seeing beyond the retirement brochure.

2: Wyoming (WY)

Best for overall affordability and tax breaks.

Wyoming is one of the most tax-advantaged states to retire in. There’s no individual income tax, no tax on retirement income, and comparatively low property taxes.

Although property prices are high in some areas (we’re looking at you, Jackson Hole), property prices in general are lower than the national average, making it an affordable state to relocate to if you currently live in a high-cost-of-living area.

WalletHub’s 2026 study actually had Wyoming at the top of the list for states to retire in. The study identified the most retirement-friendly states based on affordability, quality of life, and health care, using 46 relevant metrics to calculate a score.

The study found that Wyoming is the most affordable state in the country for retirees, while having the tenth-best elder abuse protections in the country. Wyoming’s overall score of 61.56 was just 0.01 better than Florida, the next state on our list.

Two other Wyoming figures from the same study are worth knowing: the fifth-lowest violent crime rate in the country, and the seventh-lowest poverty rate among residents aged 65 and over. The one weak spot is healthcare, where Wyoming ranks 33rd of 50 — worth weighing if ongoing medical care is a priority.

3: Florida (FL)

Best for weather and retirement lifestyle.

You probably don’t need us to tell you that Florida is a great place to retire; it’s one of America’s worst-kept secrets. Florida is home to approximately 6.5 million people aged 60 or older, many of them migrating to the state in their 50s and 60s.

While Florida has a comparatively high cost of living, there’s no income, estate, or inheritance tax, protections that senior citizens take seriously when planning for their later years.

Another huge benefit of Florida is that it has the second-most coastline in the country and enjoys some of the best year-round weather and temperatures in the United States.

But one of the main reasons people are drawn to Florida is the retirement lifestyle. Across the state, there are 673 active adult communities for people aged 55 and over, accounting for over one in four of all such communities in the USA.

These active communities support low-maintenance living, help older people connect and make new friends, while enjoying amenities such as golf courses, fitness studios, and social clubs.

For those who can afford to downsize, these communities offer a great quality of life in retirement and are a huge draw for people keen to relocate to Florida to enjoy the gorgeous weather.

Florida took first place nationally for quality of life in WalletHub’s research, and receives more Older Americans Act funding per senior than all but two other states — money that goes into transportation, homemaker assistance and nutrition programs.

4: Alaska (AK)

Best for unique state benefits and an outdoor lifestyle.

Okay, hear us out.

You might not like the idea of the plummeting winter temperatures in Alaska, but it’s actually a great state to consider for your retirement, particularly if you love the great outdoors and want to get away from it all.

While the weather is an undeniable con, Alaska has no state income or sales tax, significantly increasing your disposable income. You can also be sure of a consistent annual financial boost from the Permanent Fund Dividend (PFD), while several property tax exemptions and affordable housing options can reduce your day-to-day living expenses.

For instance, senior homeowners in Alaska benefit from a tax exemption of the first $150,000 of assessed value. Medicare and Medicaid programs are also available in Alaska, providing medical support with deductibles and copayments.

So, for low taxes and the PFD, Alaska could work well for you. But you’ll need to come to terms with the inclement weather and the higher cost of utilities, particularly electricity, during the winter months.

Alaska is stronger on paper than its reputation suggests: sixth overall in WalletHub’s best states to retire ranking, fifth for health care, and first in the country for retired taxpayer-friendliness. The PFD amount is set annually and varies with fund performance, so treat it as a bonus rather than a budget line.

5: Michigan (MI)

Best for city dwellers.

Not every retiree wants to escape the city. Some people, and you might be one of them, are keen to experience the convenience of city life during retirement.

It’s for this reason that you might be drawn to the state of Michigan in your later years. According to research and data from US News: Best Places to Retire, several of the top retirement cities in the United States are based in Michigan.

In fact, Midland, MI, is number one on the list, with a population of around 42,828, a median home value of $206,176, and an affordable median monthly rent of just $790. Statistics show that around one in five residents in Midland is over 65, so there’s a healthy retirement community in the city today.

Another option in Michigan is Rochester Hills, a busier city with a population of 77,520. As a northern suburb of Detroit, it has been ranked as one of the ten best places in the United States to live, though it’s also one of the more expensive neighborhoods in Michigan’s biggest city.

Other Michigan cities to make the top 50 include Troy, Farmington Hills, and Wyoming (MI), and could be ideal starting points for your research into your Michigan-based retirement pad.

By the way, you can gamble online in Michigan via state-approved casino sites.

6: South Dakota (SD)

Best for tax-friendly retirement and low cost of living.

WalletHub has South Dakota at number three for retirement in the US, behind Wyoming and Florida. In some respects, it offers a similar setup to Wyoming: zero state income tax, no retirement income tax, and no inheritance or estate tax.

South Dakota also checks the affordability box, with research showing comparatively low house prices, even in popular retirement areas like Sioux Falls. You can also expect lower-than-average property taxes in South Dakota, and a relatively low cost of living across the state.

A study from Insider Monkey, echoing the findings from WalletHub, has South Dakota as the second-best place to retire in the United States.

The researchers put this down to the above-mentioned tax breaks and the low median house price of $320,900, making it an affordable spot to downsize and retire.

South Dakota’s real strength in the top states for retirement in the USA data is health care, where it ranks fourth in the country — the best of any state on this list. One caveat worth knowing: WalletHub found South Dakota has the highest cost of in-home care services in the nation, which matters if long-term care is part of your planning. Our South Dakota travel guide is a good way to get a feel for the state before committing.

And One to Avoid? Kentucky (KY)

The researchers at WalletHub found Kentucky to be the worst state for retirees in the United States. But why?

It’s primarily to do with the state’s low rankings in overall health care and quality of life for seniors, despite Kentucky offering relative tax friendliness and an attractive low cost of living.

To be fair to the Bluegrass State, though, it remains advantageous for retirees regarding taxation, exempting Social Security entirely and offering substantial reductions on retirement income compared to states like Ohio.

Still, with many better options available to you, it doesn’t make sense to rush to Kentucky in your golden years.

Kentucky finished 50th of 50 in the US states to retire study, with Oklahoma and Mississippi completing the bottom three. It also ranks among the five lowest states in the country for life expectancy, which is the statistic that most directly undercuts the tax advantages.

Before You Move: Two Things Worth Checking

Run the numbers on tax, not just income tax. Eight states levy no personal income tax at all, and all of the tax-friendly states on this list are among them. But state income tax is only part of the picture — property tax, sales tax, and whether a state taxes Social Security or pension withdrawals can matter more in practice. Alaska ranks first in the country for retired taxpayer-friendliness precisely because it has neither income nor sales tax.

Visit in the worst month, not the best. Wyoming in July and Alaska in June sell themselves. February is the honest test, and it’s when utility bills, road access and healthcare distances become real rather than theoretical. Relocation scams also spike around retirement moves — our piece on the states hit hardest by vacation fraud covers what to watch for.

Bottom Line: The Best Places to Retire in the US

Ultimately, here’s what we recommend, based on the latest available data:

• Pennsylvania (PA): Ideal for small-town living. Check out Camp Hill, Jenkintown, South Williamsport, Malvern, and Irwin.
• Wyoming (WY): Probably the best state for tax breaks and general affordability in your retirement years.
• Florida (FL): Still a great place to retire for the weather and the retirement lifestyle. Consider an active adult community.
• Alaska (AK): Excellent for unique state benefits like the annual Permanent Fund Dividend payment.
• Michigan (MI): Has some of the most livable cities for retirees in the USA. Check out Midland, Rochester Hills, Troy, and Farmington Hills.
• South Dakota (SD): Great for tax breaks and a generally low cost of living for retirees.

Looking ahead to 2027. The current data points to a shift that’s been building for several years: the retirement map is moving west and north. Four of WalletHub’s top five states now sit west of the Mississippi, and Wyoming taking the top spot from Florida is the clearest signal yet that affordability is outweighing climate. Expect the same pressures — house prices, property taxes and healthcare access — to keep pushing states like Colorado, Minnesota and the Dakotas up the rankings, while the traditional sunbelt gets more expensive.