Best States to Retire in the US in 2026

Looking for the best states to retire in the US? Here are 10 affordable retirement destinations with low taxes, warm weather, and quality healthcare, ranked honestly for 2026.

Best states to retire in the US in 2026

Choosing where to retire in the US comes down to three things for most people: how far your fixed income stretches, how warm the winters are, and how good the healthcare is when you need it. The best retirement states in 2026 check all three boxes without asking you to drain your savings in the first year.

Two-thirds of American retirees relocating in 2025 headed to Sun Belt states, according to PODS moving data. North Carolina, Tennessee, South Carolina, Texas, and Florida dominated the destination lists. The reasons are consistent: no or low state income tax on retirement income, lower housing costs than coastal metros, and a warm climate that actually improves your quality of life day to day.

This guide ranks the 10 best states to retire in the US in 2026 by what matters most on a fixed income.

What makes a city good for retirement?

Before the list, a quick framework. The best US states to retire in combine several factors that matter more in retirement than during your working years:

Tax treatment of retirement income , Several states exempt Social Security, pensions, and 401(k) withdrawals entirely. Others tax them fully. This difference can mean $5,000-$15,000 per year depending on your income.

Healthcare access , Being within reasonable distance of a major hospital system matters more as you age. University-affiliated medical centers in states like Raleigh, Durham, and Nashville tend to have better facilities than smaller towns.

Cost of housing , A paid-off home or low rent is the foundation of a comfortable retirement budget. The best retirement states offer genuine affordability, not just "affordable compared to San Francisco."

Climate , Mild winters and low heating costs are a real financial benefit, not just a lifestyle preference. Most retirees relocating within the US are moving from colder northern states.

Community , States with a high percentage of residents over 65, active senior centers, and walkable neighborhoods make day-to-day retirement more enjoyable.

1. Myrtle Beach, SC: best affordable beach retirement city

Myrtle Beach consistently tops best-retirement-city lists for a reason. It combines beach access, low costs, and a retiree-friendly community in a way that few coastal states manage.

Cost of living index around 90, about 10% below the national average. Median home value around $301,400. One-bedroom average rent around $1,600 per month. For a coastal city with year-round warm weather and miles of beach, those numbers are genuinely hard to beat.

South Carolina partially taxes retirement income, but retirees 65 and older can deduct up to $10,000 from retirement accounts. No state income tax on Social Security benefits. Property taxes are among the lowest in the country.

Healthcare is solid with Conway Medical Center, Grand Strand Health, and Tidelands Health all in the area. The population over 65 already makes up about 21% of Myrtle Beach residents, meaning the infrastructure for retirement life, medical offices, senior centers, recreation, is well developed.

The honest trade-off: it is a tourist town, which means summer crowds and some seasonal business patterns. Inland neighborhoods away from the main tourist strip give you the coastal lifestyle without the worst of it.

Cost of living index: ~90
Median home price: ~$301,400
State income tax on retirement: Partial (up to $10K deduction at 65+)
Best for: retirees who want beach access without Florida prices

2. Raleigh, NC: best city for healthcare and culture

Raleigh, North Carolina is not the first city people think of for retirement, but it should be. It offers something most retirement destinations cannot: world-class healthcare combined with a genuinely livable, culturally rich city.

Duke University Hospital, UNC Health, and WakeMed Health all operate in the metro, giving Raleigh one of the strongest medical ecosystems in the Southeast. For retirees who prioritize healthcare access above all else, this matters enormously.

North Carolina does not tax Social Security benefits. The state income tax rate is a flat 4.5% and declining, among the lowest in the country for states that still have income tax. Cost of living in Raleigh runs about 2% above the national average, which sounds less impressive until you compare it to the northeast states most Raleigh retirees are coming from.

The climate is four genuine seasons with mild winters. Average January lows around 30°F with only about four inches of snow per year. Falls are exceptional.

Cost of living index: ~102
Median home price: ~$432,000
State income tax on retirement: Social Security exempt, 4.5% flat on other income
Best for: retirees who prioritize healthcare, culture, and a livable city over pure affordability

3. Knoxville, TN: best retirement city in the mountains

Knoxville sits at the edge of the Great Smoky Mountains and delivers a combination of outdoor access, low costs, and zero income tax that is hard to match anywhere in the country.

Tennessee has no state income tax on wages or retirement income as of 2026. Sales tax is high (9.55% combined) but for retirees drawing from savings rather than earning wages, the income tax benefit far outweighs the sales tax cost.

Cost of living in Knoxville runs about 15-18% below the national average. Median home prices are significantly below $300,000 in most neighborhoods. The University of Tennessee anchors a cultural scene well above what you'd expect for a city its size, museums, performing arts, and a downtown that has genuinely improved over the past decade.

Healthcare is strong through the UT Medical Center. The Smoky Mountains are 45 minutes away for hiking, and the mild four-season climate keeps outdoor activities accessible most of the year.

Cost of living index: ~83-85
Median home price: ~$270,000-290,000
State income tax on retirement: None
Best for: retirees who want mountains, low costs, and zero income tax

4. San Antonio, TX: best large-city retirement destination

San Antonio consistently ranks among the best large states to retire in the US because it delivers big-city amenities, major hospitals, cultural institutions, diverse restaurants, international airport, at a price point that most comparable states cannot match.

Texas has no state income tax, full stop. San Antonio's median home prices sit around $257,000, dramatically below Austin ($625,000) or Dallas ($316,000) despite being in the same state. The city has a strong military retirement community given its proximity to several major bases, which means excellent VA healthcare facilities.

The warm climate runs hot from June through September but winters are genuinely mild, rarely below freezing. Healthcare infrastructure is excellent through University Health, Methodist Health System, and multiple specialty centers.

The one thing that catches retirees off guard: Texas property taxes run high at about 1.60%, which adds real cost for homeowners. Budget for that before you move.

Cost of living index: ~88-92
Median home price: ~$257,000
State income tax on retirement: None
Best for: retirees wanting a large city with urban amenities at affordable prices

5. Ocala, FL: best budget retirement city in Florida

For retirees who want Florida warmth, no state income tax, and genuine affordability without coastal prices, Ocala is the answer that most people overlook.

Located in north-central Florida, Ocala sits inland away from the hurricane-exposed coasts where insurance costs have exploded. Homeowners insurance in Ocala is dramatically lower than Miami ($8,345/year average) or Tampa. Housing is affordable with median home prices well below the Florida coastal average.

Florida has no state income tax and no tax on any form of retirement income, Social Security, pensions, 401(k) withdrawals, investment income. For retirees living off savings and distributions, it is one of the most financially favorable states in the country.

Warm weather is year-round. Healthcare access through Advent Health Ocala and HCA Florida Ocala Hospital covers the basics well, though for serious specialist care, Gainesville (home to University of Florida Health) is about 40 minutes north.

Cost of living index: ~85-88
Median home price: ~$250,000-280,000
State income tax on retirement: None
Best for: budget-conscious retirees who want Florida without Florida coastal prices

If you are comparing Florida to Texas for retirement, our guide to moving from Florida to Texas breaks down the full financial comparison.

6. Greenville, SC: best up-and-coming retirement city

Greenville, South Carolina has transformed over the past decade from a quiet textile town into one of the most livable mid-sized states in the Southeast. The Falls Park on the Reedy downtown is genuinely beautiful. The restaurant scene punches above its weight. And costs remain well below most comparable states.

South Carolina offers generous retirement tax breaks. Retirees 65 and older can deduct up to $10,000 from retirement account income. No tax on Social Security benefits. Property taxes are among the lowest in the country.

Greenville sits in the foothills of the Blue Ridge Mountains, which means beautiful scenery and proximity to Asheville, NC (about an hour north) for those who want mountain access. Healthcare through Prisma Health is solid for a city its size.

The cost of living runs about 10-12% below the national average. Housing is genuinely affordable with median home prices around $300,000-350,000.

Cost of living index: ~88-90
Median home price: ~$300,000-350,000
State income tax on retirement: Partial (up to $10K deduction at 65+)
Best for: retirees who want a walkable, culturally alive city at a reasonable price

7. Chattanooga, TN: best city for outdoor lovers

Chattanooga sits at the foot of the Appalachians along the Tennessee River and offers one of the best combinations of outdoor access, affordability, and urban amenity in the South.

Tennessee's no-income-tax status means your retirement distributions stay in your pocket. Chattanooga's cost of living runs about 15% below the national average. Median home prices are low. The city has a walkable downtown with a genuine arts and food scene, and Tennessee Aquarium, Rock City, and multiple trail systems are on your doorstep.

Healthcare through Erlanger Health System and CHI Memorial covers the basics well. The Lookout Mountain area just outside the city offers some of the most scenic retirement living anywhere in the Southeast.

Cost of living index: ~84-86
Median home price: ~$260,000-280,000
State income tax on retirement: None
Best for: active retirees who want outdoor access and low costs

8. Austin, TX: best retirement city for active urban retirees

Austin is not the obvious retirement choice given its costs, but for active retirees who want a vibrant city with year-round outdoor activities and zero income tax, it makes more sense than it first appears.

The music scene, food scene, Barton Springs, and Lady Bird Lake offer a quality of life that is hard to find in cheaper states. No state income tax keeps retirement income intact. Healthcare through St. David's Medical Center and Ascension Seton is strong.

The trade-off is cost. Austin is significantly more expensive than other Texas states, with median home prices around $625,000 and a cost of living index around 139. This makes it most realistic for retirees who own their home outright or have substantial savings.

For a full look at Austin's neighborhoods and what daily life looks like, see our Austin neighborhoods guide.

Cost of living index: ~139
Median home price: ~$625,000
State income tax on retirement: None
Best for: active, financially comfortable retirees who want an urban lifestyle

9. Jacksonville, FL: best affordable large city in Florida

Jacksonville is Florida's largest city by area and one of its most overlooked retirement destinations. It avoids the tourist congestion of Miami and Tampa while still delivering Florida's core retirement benefits: no income tax, no tax on retirement income, warm weather, and beach access.

Jacksonville's cost of living runs below most Florida metros. Median home prices are more accessible than South Florida. Homeowners insurance, while still elevated compared to inland states, is lower than coastal Florida states because Jacksonville sits on the northern Atlantic coast rather than the storm-battered Gulf.

Healthcare is excellent through Mayo Clinic Jacksonville, UF Health, and Baptist Health. The St. Johns River runs through the city, providing waterfront lifestyle without ocean flood risk.

Cost of living index: ~96-98
Median home price: ~$300,000-340,000
State income tax on retirement: None
Best for: retirees who want Florida benefits without South Florida costs

10. Asheville, NC: best retirement city for mountain lovers

Asheville is one of those states that people visit for a weekend and immediately start planning a move. The Blue Ridge Mountains, the art scene, the food scene, and the distinctive character of the place make it genuinely special.

North Carolina does not tax Social Security, and the 4.5% flat income tax rate is among the lower in the country for income-tax states. Mission Hospital (HCA Healthcare) provides solid local healthcare with larger facilities accessible in Charlotte and Raleigh.

The honest trade-off: Asheville has gotten more expensive as it has become more popular. Median home prices now run $450,000-$500,000 in many areas, higher than Knoxville or Chattanooga. Winters in the mountains also bring more cold and occasional snow than other Southeast retirement destinations. But for retirees who value scenery and culture above pure affordability, few states in the country compete.

Cost of living index: ~105-110
Median home price: ~$450,000-500,000
State income tax on retirement: Social Security exempt, 4.5% on other income
Best for: retirees who prioritize scenic beauty, arts, and mountain lifestyle

Best states to retire by priority

Pure affordability: Knoxville, Chattanooga, Ocala, San Antonio

Best tax treatment of retirement income: Any Florida city, any Tennessee city, San Antonio (Texas)

Best healthcare: Raleigh (Duke, UNC Health, WakeMed), Jacksonville (Mayo Clinic), Nashville

Beach access: Myrtle Beach, Jacksonville, Ocala (2 hours from both coasts)

Mountain access: Asheville, Chattanooga, Knoxville, Greenville

Best overall value: Knoxville and San Antonio stand out. Both combine no state income tax, genuinely affordable housing, solid healthcare, and warm winters.

What states are most retirement-friendly in 2026?

The best retirement states in this list cluster in four states: Tennessee, Florida, North Carolina, and South Carolina. Each offers different trade-offs.

Tennessee has no income tax at all, a low cost of living, and states like Knoxville and Chattanooga that are genuinely affordable. The downside is high sales tax.

Florida has no income tax and no tax on retirement income of any kind. The downside is insurance costs, particularly in coastal areas.

North Carolina does not tax Social Security, has a declining flat income tax rate, world-class healthcare, and states like Raleigh that offer a quality of life hard to find elsewhere at comparable prices. See our full guide to moving to Raleigh for what life there actually looks like.

South Carolina offers generous retirement deductions, low property taxes, and coastal access at prices below Florida.

FAQ

What is the best city to retire in the US in 2026?

For most retirees, Knoxville, Tennessee and San Antonio, Texas offer the best combination of affordability, zero income tax, warm winters, and solid healthcare. Myrtle Beach is the top choice for beach access at an affordable price. Raleigh is the best pick for healthcare and urban quality of life.

What are the most affordable states to retire in the US?

Knoxville, TN (cost of living index ~84), Ocala, FL (~85-88), Chattanooga, TN (~84-86), and San Antonio, TX (~88-92) are consistently among the most affordable large states to retire in the US. All four have no state income tax and median home prices well below the national average.

Which US states have the best weather for retirement?

San Antonio, Myrtle Beach, Ocala, and Jacksonville all offer warm winters with minimal frost. Raleigh and Knoxville have four seasons with mild winters that most retirees from the North find manageable. Asheville and Chattanooga are colder due to elevation but still significantly milder than northern states.

Which states do not tax retirement income?

Florida and Tennessee are the standouts: neither taxes any retirement income, including Social Security, pensions, 401(k) withdrawals, or investment income. Texas has no income tax at all. North Carolina and South Carolina offer partial exemptions, particularly for retirees 65 and older.

Is Raleigh NC a good place to retire?

Yes, particularly for retirees who prioritize healthcare access and urban quality of life. Raleigh has three major hospital systems within the metro (Duke, UNC Health, WakeMed), no Social Security tax, a flat 4.5% income tax rate, and a cost of living that is affordable compared to most Northeast states. Full details in our Raleigh moving guide.

What is the cheapest warm place to retire in the US?

Ocala, Florida and Knoxville, Tennessee consistently rank as the cheapest warm places to retire with no state income tax on retirement income. Both have median home prices below $300,000 and cost of living indices 12-18% below the national average.

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