Top 10 Best States To Retire in 2026

Retirement evokes images of the sweet life — sipping coffee on the veranda, enjoying long lunches with friends, going to see a movie whenever you feel like it, or inviting neighbors over for a margarita to watch the sunset from your beach house. But where is that beach house exactly? And can you enjoy that veranda year-round? To find your answers, you’ll have to explore the best states to retire. 

But as you think about shifting from work to play, you may be wondering what states rank as the best retirement states. It’s only natural — this is an important time in your life you’ve fantasized about for years. You want to get it right. Now is an ideal time to start planning, and part of that process may be choosing to relocate after retirement to a state where the weather meets your needs, and the costs for housing, recreational activities, healthcare, and other necessities fit into your overall retirement budget.

If you’re looking for the best states to retire, start your search in Wyoming, Florida, and South Dakota.

What Are the 10 Best States To Retire in 2026?

If you’re ready to enjoy that sweet retiree life and you want to get a move on, here are the best states for retirement, according to WalletHub.*

• Wyoming
• Florida
• South Dakota
• Colorado
• Minnesota
• Alaska
• Delaware
• Pennsylvania
• New Hampshire
• Iowa

^{*WalletHub compared data from all 50 states and evaluated each state considering 46 factors, including financial concerns like cost of living and tax-friendliness, as well as living conditions such as weather, access to care, how much of the population is 65+, and bingo halls per capita.}

We’re going to take a deeper look at each of these top 10 states to retire in, delving into specifics like cost of living, things to do, and tax-friendliness to suss out everything from the best states to retire with a pension to the cheapest state to retire. So, what are the best states to retire in? Read on to find out.

Top 10 States To Retire in 2026

As important as they are, tax rates aren’t the only thing to consider when finding the right state to retire in. Let’s dive into our list of the top 10 states to retire in 2026 and see exactly why these states are so great for retirees.

Wyoming isn’t just one of the best states to retire — it’s one of the most beautiful states in the U.S. From Yellowstone to Grand Teton, be sure to check out its national parks.

1. Wyoming: The Stunning Showstopper

• Average home value: $355,700
• Average rent (one-bedroom): $1,325
• State income tax: No state income tax
• Cost of living: 97.5
• Population 65+ years: 19.7%

Looking for the number one state to retire in? Not only do Wyoming residents enjoy a cost of living 2.5 percent below the national average index, but they also pay a smaller proportion of their income toward taxes than they would in most other states. Notably, it’s one of the nine states with no state income tax.

It also doesn’t hurt that Wyoming’s natural scenery is stunning. It’s no wonder the World Population Review dubbed it the eighth most beautiful state in the U.S. You’ve most definitely heard of Yellowstone National Park, which attracts droves of visitors every year with its unbelievable geysers, hot springs, majestic canyons, and abundant wildlife. But there are so many other natural beauties to see in Wyoming, too, from Grand Teton National Park to Red Canyon.

As for the best places to retire in Wyoming, Niche recommends Thermopolis (the Wyoming city with the fourth-lowest cost of living), Ranchettes (also ranked the ninth best place to live overall in Wyoming), and Worland (ranked the third-lowest cost of living in Wyoming).

Looking for the best place to retire in Florida? Check out Rio, Highland Beach, and Siesta Key.

2. Florida: The Tax-Friendly Titan

• Average home value: $372,800
• Average rent (one-bedroom): $1,950
• State income tax: No state income tax
• Cost of living: 103.1
• Population 65+ years: 21.8%

Florida is second on our list of best states to retire, as it’s one of the most affordable places to retire. Why? Florida is a very tax-friendly state, with no state income tax and no tax on pension income — which is great for people who want to enjoy their retirement fund to its fullest potential. The cost of living is 3.1 percent more than the national average, but the state doesn’t have estate or inheritance taxes either, another plus when thinking about the best states to retire for taxes.

Florida has a thriving senior community with plenty of recreation for retirees, including fantastic beaches, beautiful natural attractions like freshwater springs, and some of the best golf courses in the country. If you’re sold on the state but are still wondering about the best place to retire in Florida, consider Rio, Highland Beach, and Siesta Key, which are the top three spots according to Niche. For more ideas on the best places to live in Florida, check out PODS’ list.

However, you also have to consider the weather and climate. Florida is known as The Sunshine State and, while it does offer warmer winter temps than most other parts of the country, it also experiences hot, humid summers as well as tropical storms, hurricanes, and tornadoes.

3. South Dakota: The Financially-Friendly Frontier

• Average home value: $312,000
• Average rent (one-bedroom): $1,025
• State income tax: No state income tax
• Cost of living: 89.3
• Population 65+ years: 18.8%

Retiring in South Dakota means enjoying financial benefits that make life easier for seniors. The state has no income tax, which means Social Security, pensions, and retirement account withdrawals remain untaxed, making it easily one of the best states to retire in. It also boasts one of the lowest overall tax burdens in the nation, allowing retirees to stretch their savings further. Additionally, South Dakota has a low cost of living and affordable housing (median home values sit just above $312,000, well below the national average).

South Dakota also offers a peaceful, scenic lifestyle with plenty of outdoor recreation. The Black Hills, Badlands National Park, and Custer State Park provide stunning landscapes for hiking, fishing, and wildlife watching. For those who prefer small-town charm or vibrant communities, cities like Milbank, Hot Springs, and Mobridge rank among the best places to retire according to Niche.

Beyond affordability and natural beauty, South Dakota fosters a strong sense of community with its friendly residents and numerous local events. Whether exploring historic Deadwood, visiting Mount Rushmore, or enjoying the annual Sturgis Motorcycle Rally, retirees will never run out of things to do in this welcoming state.

4. Colorado: The Outdoor Lover’s Oasis

• Average home value: $535,500
• Average rent (one-bedroom): $1,600
• State income tax: 4.25%
• Cost of living: 120.5
• Population 65+ years: 16.4%

If the Florida heat isn’t for you, Colorado’s dry climate might just be. Those hoping to fill their Golden Years with lots of physical activity will thrive here, thanks to the forgiving weather and surplus of stunning mountains, parks, and trails. According to WalletHub, colorful Colorado ranks exceptionally high for the proportion of seniors who are in good health and have a physically active lifestyle. The state also has one of the lowest rates of social isolation among seniors.

Not to mention, there are no estate or inheritance taxes in Colorado, making it easier to transfer your property or wealth to loved ones later in life. Unsure which Colorado city to hone in on? Check out Denver — two of the three best places to retire in Colorado (Columbine Valley first, Holly Hills third) are suburbs of the state’s capital, according to Niche.

5. Minnesota: The Healthcare Hero

• Average home value: $341,300
• Average rent (one-bedroom): $1,450
• State income tax: 5.35%–9.85%
• Cost of living: 97.2
• Population 65+ years: 18.2%

Minnesota is one of the best states to retire for unparalleled access to good healthcare. A big part of the reason for its second-place ranking is that it comes in first place in the healthcare facilities per capita category. It also placed second in the most nursing homes, third in having health aids, the fifth-best geriatric hospitals in the nation, and the third-lowest percentage of seniors with a disability.

It’s also not hard to live affordably in Minnesota, thanks to its below-average cost of living, which includes lower costs when it comes to groceries, healthcare, utilities, and transportation. Housing is slightly above average, though pretty affordable compared to many other states — the average home value is just above $341,300.

Some of the best places to retire in Minnesota, according to Niche, are Edina, Mendota Heights, and North Oaks. Wherever you live, though, be sure to travel around the state to visit sites of interest like the Minneapolis Institute of Art, the Mall of America, and Gooseberry Falls State Park, just to name a few of the incredibly diverse things to do around the state.

6. Alaska: The Wildlife Wonder

• Average home value: $376,300
• Average rent (one-bedroom): $1,375
• State income tax: No state income tax
• Cost of living: 116.5
• Population 65+ years: 14.8%

Alaska may not be one of the cheapest spots on this list — in fact, it ranks as the third highest after Hawaii, Massachusetts, and California — but that doesn’t mean it’s not still one of the best states to retire. For one, it’s one of nine states with no individual income tax, which is a major perk when trying to make your money last as long as possible. SmartAsset dubs it a “very tax-friendly” state, along with only six others, because beyond the lack of income tax, it also lacks a state sales tax, estate tax, or inheritance tax, making it overall a best state to retire for taxes.

But what’s it like to actually live out your golden years in Alaska? Of course, it looks much different than the beachside bliss of sunny Florida, but it’s full of its own incredibly natural glory. If you love fishing, hiking, and spotting all kinds of wildlife (from bears to bald eagles), you’ll feel right at home here. Denali National Park is a U.S. treasure and contains the tallest mountain peak in the country, Mount McKinley.

While Alaskan winters are long and dark, that’s not necessarily a con; in fact, many residents love living there for that very reason, and for people who find summers elsewhere way too long and cloying, Alaska is surely one of the best states to retire.

It’s also worth noting that, like Hawaii, Alaska isn’t part of the contiguous United States, so it may be more of a journey to visit friends and family living in other parts of the country. That said, if a more off-grid retirement sounds like peace to you, this state can offer just that. With just under 15 percent of the population over 65 years old, the retirement community is small but tight, and there are plenty of friendly towns to check out.

7. Delaware: The Character-Filled Charmer

• Average home value: $396,200
• Average rent (one-bedroom): $1,525
• State income tax: 2.2%–6.6%
• Cost of living: 103.5
• Population 65+ years: 21.8%

Delaware may be small, but it’s got a lot of character. This northeast coastal state is chock full of charming little towns with plenty to keep you busy in your retirement (check out some of the best small towns in Delaware). From Atlantic Coast towns like Rehoboth Beach to quiet, suburban Greenville, you’ll find what you’re looking for in Delaware. Not to mention, the state’s close proximity to other large metropolises (Baltimore, Washington, DC, and Philadelphia, to name a few).

While the cost of living is a bit higher in Delaware than the national average, the state income tax is relatively low, and there’s no state or local sales tax. Residents also enjoy solid access to healthcare and a lower risk of social isolation.

If you enjoy cozying up to a fire in the winter, you’ll have plenty of opportunities with Delaware’s long, snowy winters. And don’t worry if the cold isn’t your thing; the spring and autumn months in Delaware are gorgeous, and the summers are mild.

If Delaware sounds like the place for you, start your search with Dover, Milton, and Wilmington — three of the best places to look into if you’re retiring in Delaware. 

8. Pennsylvania: The Low-Cost Locale

• Average home value: $278,400
• Average rent (one-bedroom): $1,600
• State income tax: 3.07%
• Cost of living: 94.6
• Population 65+ years: 20.4%

Is PA a good place to retire? We’ll let the facts speak for themselves. Not only is Pennsylvania one of the states that don’t tax retirement income, but it also has a cost of living below the national average, affordable housing, and a relatively low state income tax rate compared to other states in the Northeast. Safe to say, Pennsylvania is a contender for one of the best states to retire in.

History buffs will delight in Pennsylvania’s many historic sites and buildings dating back to the 17th and 18th centuries. If you’re more of a nature lover, there are 86,000 miles of rivers and streams, over 6,700 miles of trails, 22 ski resorts, and 124 free state parks, where you can hike, bike, and ski to your heart’s content. And if you’ve even wanted to explore the Appalachian Trail, that’s here, too!

Additionally, Pennsylvania’s cities are home to world-class museums, art, dining, breweries, and more pro sports teams than you can shake a stick at. Moving to Philadelphia or Pittsburgh, in particular, will provide plenty of opportunities for big-city living, if that’s what you’re looking for.

When considering the pros and cons of retiring in Pennsylvania, though, it’s important to note that Pennsylvania experiences harsh winters with lots of snow, and the state is known for having bad traffic, in general — both reasons why driving here can be difficult. There are also additional taxes to consider. For instance, municipalities and school districts can impose an additional tax on residents, called a local Earned Income Tax (EIT).

Not only is New Hampshire one of the best retirement states, but it’s also one of the safest states to live in.

9. New Hampshire: The Safe Spot

• Average home value: $495,300
• Average rent (one-bedroom): $2,125
• State income tax: No state income tax
• Cost of living: 105.8
• Population 65+ years: 21.5%

If you decide to retire in New Hampshire, you’re in good company. More than one-fifth of the population is over the age of 65, after all, and it’s only growing. What does retiring here look like, though? Think: Driving to charming Portsmouth for boutique shopping and a bite to eat, enjoying the natural beauty of the White Mountains and the 18 miles of Atlantic Ocean coastline, and an easy drive for day trips to local spots as well as nearby cities like Boston. The Granite State may be small, but it is certainly mighty.

New Hampshire also enjoys the huge benefit of having no state income tax and no sales tax! However, it has some of the highest property taxes in the country, and the cost of living is nearly 6 percent above the national average. Retirees can rest easy, though, knowing that it also has one of the lowest crime rates in the country.

When you’re deciding on which town to settle down in, check out our guide to the best places to retire in New Hampshire.

10. Iowa: The Friendly Midwesterner

• Average home value: $227,800
• Average rent (one-bedroom): $1,050
• State income tax: 3.8%
• Cost of living: 80.1
• Population 65+ years: 18.9

If you’re interested in the best retirement states in the Midwest, don’t overlook Iowa. It offers a cost of living nearly 20 percent below the U.S. average and ranks as the state with the 11th best quality of life for retirees, according to WalletHub. Iowa is also rated “moderately tax-friendly,” according to SmartAsset, as it does have a 3.8 percent flat income tax, but there is an exemption for retirement income as long as you’re 55 or older (or meet one of the other requirements).

For those who prefer to be surrounded by beautiful nature in retirement, Iowa is chock-full of state parks, trails, and lakes for leisurely exploration. That said, the state does enjoy all four seasons, including a cold winter and hot, humid summer, so you’ll want to pack accordingly. One of the biggest perks of retiring in Iowa is its reputation for midwestern friendliness, which should help you feel welcome and settled into the community more easily.

You can enjoy a peaceful life while also showing up for big events like the 170-year-old annual Iowa State Fair, which includes all kinds of festivities like rides, concerts, food vendors galore, and even a massive cow carved out of butter. 

Thanks to its relative affordability and high quality of life for seniors, sunny Florida takes the No. 2 spot on our list of the best states to retire in 2026.

5 of the Best States To Retire With a Mild Climate

You may have noticed that most of the states on our list of the 10 best states to retire in 2026 aren’t necessarily “warm” places to live. And while living in a sunny state isn’t for everyone, we know there are still plenty of retirees looking for a hot spot to land. So these are the 5 best states for retirement with mild weather, along with their overall rankings on the Wallethub list:

1. Florida (2nd overall)

2. Virginia (12th overall)

3. North Carolina (13th overall)

4. South Carolina (17th overall)

5. California (25th overall)

Those Are the Best States To Retire — But What About the Worst?

Now that we’ve covered the best retirement states, you may be wondering which states not to retire in. According to WalletHub, the five worst states for retirement are Kentucky, Oklahoma, Mississippi, West Virginia, and Hawaii. Here are some of the reasons why:

Kentucky

Though Kentucky has a below-average cost of living, it has a flat rate state income tax of 4 percent and ranks low in WalletHub’s evaluations of quality of life and healthcare.

Oklahoma

Though Oklahoma does enjoy the lowest adjusted cost of living of all 50 states, according to WalletHub, it’s one of the lowest-ranking states for quality of life.

Mississippi

Mississippi also offers a lower cost of living, and in particular a low annual cost for in-home services, but it also ranks very low on other important metrics. For instance, it has the fewest theaters per capita (key if enjoying the arts is important for you in retirement!) and ranks lowest for life expectancy.

West Virginia

The cost of living in West Virginia is also low compared to many other states (as well as the cost of in-home services!); however, it ranks last when it comes to the percentage of its workforce aged 65+ (New Hampshire comes in first!). It also ranks very low for museums and theaters per capita, which is definitely worth keeping in mind if you love art.

Hawaii

While Hawaii ranks at the top of the list for states with the highest life expectancy, it falls down in the rankings due to its very high cost of living (almost 66 percent above the U.S. average).

Unsurprisingly, the second-best state to retire in 2026 is sunny Florida.

Best States To Retire in 2026 — FAQs

Q: What state is financially best to retire in?
A: What is the cheapest state to live in when you retire? “Cost of living” is used to determine the affordability of a region. It takes into account healthcare, groceries and food, housing, transportation, etc. Wyoming ranks as one of the best states to retire in when it comes to affordability, with a cost of living 2.5 percent below the U.S. average, whereas housing is 4 percent lower than the U.S. average. Here are the top 5 best states to retire based on affordability in 2026:

1. Wyoming

2. Florida

3. Delaware

4. Tennessee

5. Nevada

Q: What is the best state to retire in 2026 for retirees?
A: The best state to retire in 2026 is beautiful Wyoming, thanks to its relative affordability and high quality of life for seniors. That’s followed up by Florida, South Dakota, and Colorado.

Q: What state has the lowest cost of living for retirees?
A: Oklahoma has the lowest adjusted cost of living, according to WalletHub, which is 17.8 percent lower than the U.S. average. Hawaii, on the other hand, has the highest, with a cost of living 65.7 percent above the national average.

Q: What states don't tax retirement income?
A: Wondering what states don’t tax your 401(k) when you retire? What is the best state to retire to avoid taxes? The following nine states do not tax any income (including on paychecks, 401(k)s, IRAs, or pensions):

• Alaska
• Florida
• Nevada
• New Hampshire (only taxes dividend and interest income)
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

And these four states do have an income tax, but offer an exception for retirement income (woohoo!):

• Illinois
• Iowa (see requirements)
• Mississippi (see requirements)
• Pennsylvania (see requirements)

Q: What states don’t tax Social Security for retirees?
A: This one’s big for retirees when it comes to where to retire. Most states — plus the District of Columbia — do not tax Social Security benefits. And the 16 states listed below don’t tax pension income, making them among the best states to retire with a pension:

1. Alabama

2. Alaska*

3. Florida*

4. Hawaii

5. Illinois

6. Iowa

7. Michigan (fully going into effect in the 2026 tax year)

8. Mississippi

9. Nevada*

10. New Hampshire*

11. Pennsylvania

12. South Dakota*

13. Tennessee*

14. Texas*

15. Washington*

16. Wyoming*

^{*No state income tax.}

Q: What is the best state to retire in, according to the U.S. News & World Report?
A: According to the U.S. News & World Report, as of 2026, the best state to retire in is Florida, based on the fact that Florida cities hold three spots on their top ten best places to retire list. Two Texas towns also land in the top 10, making Florida and Texas two of the best states to retire, according to this list.

Now that you have an idea of the best states to retire, let PODS help you make the move.

Move to One of the Best States To Retire With PODS

While affordability and tax burden are sensible things to consider when choosing a retirement destination, there are always other factors to consider, such as where your children and grandkids are living, and whether you want to become a “snowbird” and travel to Georgia or Florida for the colder months. Just something to think about!

Once you’ve decided where to spend your golden years, make your move to a new city flexible with a PODS portable moving container delivered right to your home. One month’s storage is included in the cost of every move, and if you need a hand with the heavy lifting, PODS can refer you to local packing and loading help. Once everything is loaded and ready to roll, your container will be picked up and transported to your new home in one of the best states to retire!

Visit PODS online for a free local moving quote or call 877-350-7637 for long-distance moving.

Sofia Rivera is a Brooklyn-based lifestyle editor and frequent contributor to the PODS Blog. Her work has appeared in Boston magazine, Apartment Therapy, and more. You can most often find her redecorating her apartment, trying out a new recipe, or trekking all over the city.

Editor’s note: Average and median rent prices were obtained from RentCafe; average home values were obtained from Zillow. For ease of reading, monthly rental prices were rounded to the nearest $25 and home values were rounded to the nearest $100.

_{*This article was written on behalf of PODS Enterprises, LLC (“PODS”). PODS does not warrant the completeness or accuracy of any information contained in this article and disclaims any liability for reliance upon the content herein.}