Best States to Retire in 2025–2026: 5 Major Rankings Compared

Important Disclosures

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Key Takeaways

Wyoming tops WalletHub (2026), Empower (2025), and Retirement Living (2025); New Hampshire tops Bankrate (2025) — methodology drives dramatically different outcomes.
Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
According to a Motley Fool survey of 2,000 retirees, taxes rank fifth in importance — behind quality of life, healthcare, housing, and safety.
Florida tops tax-weighted rankings but falls near the bottom of studies that prioritize healthcare quality and affordability.
State choice directly affects annuity rates, guaranty association coverage limits, and how annuity income is taxed.
The median U.S. home price reached $435,300 in June 2025 — housing remains the single largest retirement budget variable.

Where you retire may matter as much as when you retire. State taxes, healthcare access, housing costs, and climate can dramatically affect how far your money goes and how well you live. But here's the challenge: every major ranking uses a different methodology — and the results vary significantly. Rather than hand you one list and call it done, we've compared five major 2025–2026 rankings side by side so you can see where the consensus lies and where it breaks down.

What the Major Rankings Agree On

Despite very different methodologies, a few states appear consistently near the top across multiple rankings. Wyoming leads or places top-three in WalletHub (2026), Empower (2025), and Retirement Living (2025), driven by no state income tax, low property taxes, and a low senior poverty rate. Florida appears in the top five of most rankings that weight taxes and lifestyle heavily, though it drops significantly in rankings that weight healthcare quality and affordability (Bankrate placed it near the bottom of its 2025 list). New Hampshire tops Bankrate's 2025 study and ranks highly in Empower's list, praised for strong healthcare, low crime, and no income tax on wages.

How the Major 2025–2026 Rankings Compare

Source: Motley Fool (2026) | #1: — | #2: — | #3: — | Key Methodology: Survey of 2,000 retirees; weighted: quality of life (31%), healthcare (15%), housing (13%) | Link: View ranking

Rankings reflect each source's most recent published study as of early 2026. Methodologies differ significantly — a state's ranking can shift dramatically depending on which factors are weighted most heavily.

Why the Same State Can Rank #1 and #40

Florida is the clearest example of methodology driving results. It tops tax-weighted rankings (no income tax, no estate tax, no inheritance tax) but falls toward the bottom of studies that prioritize healthcare quality and affordability — factors that have become increasingly important as healthcare costs consume a larger share of retiree budgets. The Motley Fool's retiree-surveyed methodology found that quality of life accounts for 31% of what retirees say matters most, followed by healthcare (15%) and housing affordability (13%) — while taxes rank fifth at 11%.

This means the "best" state for you depends entirely on your personal priorities. A healthy 62-year-old prioritizing sunshine and tax savings may reach a very different answer than a 72-year-old who weighs proximity to major medical centers above everything else.

The Five Factors That Matter Most

1. State Tax Treatment of Retirement Income

Nine states have no income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Several others exempt Social Security and/or pension income from taxation. This can translate to thousands of dollars in annual savings on a fixed retirement income. However, tax-friendly income treatment doesn't always mean low overall tax burden — property taxes, sales taxes, and estate taxes vary widely.

2. Healthcare Access and Quality

For most retirees, healthcare access becomes the dominant practical concern within five to ten years of retirement. States that rank highly for healthcare include Massachusetts, Minnesota, and Connecticut according to multiple studies. Rural states with attractive tax profiles — Wyoming, South Dakota — often rank lower for healthcare access simply due to lower population density and fewer specialists per capita.

3. Cost of Living and Housing

The median price of existing U.S. homes reached an all-time high of $435,300 in June 2025, according to Empower's analysis. Housing is typically the largest single expense in retirement. States with low housing costs — Mississippi, West Virginia, Arkansas, Oklahoma — may look unattractive on quality-of-life measures but can be highly affordable for retirees on fixed incomes. The question is whether the savings outweigh the tradeoffs in healthcare, climate, and amenities.

4. Climate and Natural Environment

Climate preferences are deeply personal and don't show up well in purely financial rankings. Bankrate weights weather at 12% of its scoring — the same as crime and safety — based on what survey respondents say they value. Sun Belt states consistently attract retirees seeking warmth, while New England states attract those prioritizing four-season living, outdoor recreation, and walkable communities.

5. Proximity to Family and Urban Amenities

No ranking adequately captures this factor — yet it may be the single most powerful determinant of retirement satisfaction. Research consistently shows that social connection is among the strongest predictors of wellbeing in older adults. A state that scores lower on every financial metric but keeps you near children and grandchildren may be the better choice for your quality of life.

How Your State Choice Affects Your Retirement Income Strategy

State selection has a direct impact on annuity planning in several ways. First, annuity rates vary by state — carriers price products differently based on state regulatory requirements and local mortality tables. Second, state guaranty association coverage limits differ: most states cover annuity values up to $250,000, but some provide more or less. Third, the tax treatment of annuity income varies: states that exempt Social Security may still tax annuity distributions, and vice versa.

Before committing to a retirement state, model your complete income picture — Social Security, pension if applicable, investment withdrawals, and any annuity income — under that state's specific tax rules. A licensed financial advisor familiar with multi-state retirement planning can help ensure your income strategy is optimized for wherever you choose to live.

What is the best state to retire in for taxes?

Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Several others exempt Social Security and pension income. However, low income tax doesn't always mean low overall tax burden — property taxes, sales taxes, and estate taxes vary widely. Model your full income picture under each state's rules before deciding.

Why do different rankings produce such different results?

Because they weight factors differently. A ranking that prioritizes taxes will favor Florida and Wyoming. One that weights healthcare quality most heavily may favor Massachusetts or Minnesota. The Motley Fool's 2026 study — based on a survey of 2,000 actual retirees — found that quality of life accounts for 31% of what retirees say matters most, with taxes ranking fifth at 11%. The best ranking to use is the one whose methodology aligns with your personal priorities.

Is Florida still a good state to retire in?

Florida remains one of the most tax-friendly states for retirees — no income tax, no estate tax, no inheritance tax. It consistently tops tax-weighted rankings. However, it ranks poorly in studies that weight healthcare quality and affordability, and its cost of living has risen significantly. Whether Florida is right for you depends on your health, income, and lifestyle priorities.

How does my state of retirement affect annuity income?

Annuity rates can vary by state due to regulatory differences and carrier pricing. State guaranty association limits — the backstop if an insurer becomes insolvent — also vary, typically up to $250,000 but sometimes more or less. Additionally, the tax treatment of annuity income differs: some states that exempt Social Security still tax annuity distributions. Review your state's specific tax rules before finalizing any annuity purchase.

What do retirees say matters most when choosing a state?

According to The Motley Fool's 2026 study — which surveyed 2,000 retired Americans — quality of life is the top-weighted factor at 31%, followed by healthcare access and quality (15%), housing affordability (13%), crime and safety (12%), weather and climate (12%), taxes (11%), and other cost of living factors (6%). Notably, taxes — which dominate most published rankings — ranked fifth among actual retirees.

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