Florida makes the list of best states for retirement.
Originally published: October 25, 2022
Updated: August 19, 2026
A comfortable retirement is a lifelong goal for people of almost any age, in any profession, and from every state.
But that isn't to say retirement has equal value across state lines. Taxes, cost of living, and even climate give certain states an upper hand when it comes to retirement; the same income and investments can have much different values in different parts of the country. In this blog, we will be looking at a ranking of the most ideal states for retirement.
Before making any plans, we recommend speaking with a financial professional who can help you find the state that makes the most sense for your financial situation.
The value of working with a financial professional varies by person; however, research suggests people who work with a financial professional feel more at ease about their finances and could end up with more money to spend in retirement.
Best States for Minimizing Taxes in Retirement
If shrinking your tax liability is high on your list of priorities, a few states stand out. The winners on the list below either have no state income tax, no tax on retirement income, or a substantial discount on the taxes levied on retirement income. But that's just the start.
While several additional states have no state income tax, the states that made the list also have favorable sales, property, inheritance, and estate taxes.
- Alaska
- Florida
- Georgia
- Mississippi
- Nevada
- South Dakota
- Wyoming
If those seven locations aren't ideal, consider the next tier of tax-friendly states. Tax benefits aren't quite as high as those above, but they do stand out in one specific category: no taxes on social security income.
That's not to say they don't make up for it in other areas, however. Washington State, for example, has no state income tax, but does have a 6.5% state sales tax. Still, it's generally beneficial to avoid income tax when possible.
- Alabama
- Arkansas
- Colorado
- Delaware
- Idaho
- Illinois
- Kentucky
A few notes on the lists above: Georgia excludes up to $65,000 of retirement income per person for taxpayers age 65 and older (and up to $35,000 for those age 62–64), so most retirees there pay little to no state tax on retirement income. Colorado's Social Security exemption isn't a blanket exclusion — residents age 65 and older can subtract the full amount of taxed Social Security benefits, but those age 55–64 must meet income limits (adjusted gross income under $75,000 single / $95,000 joint) to qualify for the full exemption.
Top States Favored by Retirees
While Alaska may have favorable tax policies, lounging in Anchorage may not be your idea of a relaxing retirement. To uncover where retirees actually want to live, let's dive into another set of numbers.
According to 2026 U.S. Census Bureau data (originally sourced to the Federal Interagency Forum on Aging Statistics), the following states have the largest shares of residents age 65 and older:
- Maine — 23.5%
- Vermont — 22.9%
- West Virginia — 21.9%
- Florida — 21.8%
- Delaware — 21.7%
- Hawaii — 21.5% (tied for sixth)
- New Hampshire — 21.5% (tied for sixth)
(Source: U.S. Census Bureau data via Visual Capitalist, 2026: https://www.visualcapitalist.com/mapped-the-share-of-seniors-in-every-u-s-state/)
Best Overall State for Retiring
Now, let's compare. By cross-referencing the list of “Best States for Minimizing Taxes in Retirement” with our list of states most densely populated with retirees, we find that only one state makes both lists.
The Sunshine State offers favorable taxes, pleasant climate, and a cost of living that remains competitive with many other states.
The Bottom Line
Wherever your retirement dreams take you, it's important to keep the above in mind and make the right decision for your financial situation.
A financial professional can help you consider not only the tax implications of a move, but also other factors specific to your situation.
Not sure where to start? Summerlin Benefits Consulting can help. We have been helping clients across Northern Florida and Southeast Georgia since 2012. We would love to know what is important to you in retirement!
Important Tax and Legal Information
This content is for informational purposes only and does not constitute tax or legal advice. Summerlin Benefits Consulting does not provide social security, specific advice related to taxes, or legal advice. Consult a tax/legal professional for guidance with your individual situation.
Frequently Asked Questions
Q: What is the best state to retire in for taxes?
A: States with no state income tax or generous retirement-income exemptions are typically the most tax-friendly for retirees, including Alaska, Florida, Georgia, Mississippi, Nevada, South Dakota, and Wyoming. These states also tend to have favorable sales, property, inheritance, and estate taxes, which further reduces the overall tax burden in retirement.
Q: Why is Florida considered one of the best states for retirement?
A: Florida is the only state that appears on both the tax-friendly list and the states with the largest share of residents 65 and older — 21.8% of its population as of 2026 Census Bureau data (Visual Capitalist, 2026). That combination of favorable taxes and a large retiree community makes it a standout choice for retirement.
Q: Which states have the highest percentage of residents over 65?
A: As of 2026 U.S. Census Bureau data, Maine (23.5%), Vermont (22.9%), West Virginia (21.9%), Florida (21.8%), and Delaware (21.7%) have the largest shares of residents 65 and older, with Hawaii and New Hampshire tied for sixth at 21.5% each.
Q: Do retirees have to pay state tax on Social Security benefits?
A: It depends on the state. Many states — including Alabama, Arkansas, Delaware, Idaho, Illinois, and Kentucky — don't tax Social Security benefits, while others apply exemptions based on age or income instead of a blanket exclusion. A financial professional can help you evaluate how your specific state treats retirement income.
Q: Should I move to a different state just for retirement tax savings?
A: Taxes are only one piece of the decision — cost of living, climate, and proximity to family and community also matter. A financial professional can help you weigh the full financial picture and determine whether a move actually improves your retirement outlook, not just your tax bill.
