The Best And Worst States To Spend The Golden Years After Retirement
Although it's natural to feel enough of an attachment to one's home state during retirement, that's not quite how everyone thinks. And even in cases where they do, some people may find that life will ultimately get easier if they pick another state to spend their lives in after a lifetime of hard work.
Of course, deciding which state to retire in can be a daunting task when a person has 50 of them to choose from. As such, it's helpful to get a sense of both the most comfortable and the most challenging states to retire in. And if a doesn't come up, it exists somewhere between those extremes.
Worst: Alaska
Among the best and worst states for retirement, Alaska stands out as one of the least favorable options. While it boasts no state income tax, its frigid climate, highest violent crime rate, and second-worst broadband access make it a challenging choice for retirees.
Relocating to Alaska from the lower 48 states could mean significant distance from loved ones, amplifying the potential hardships. Despite its financial perks, Alaska's unfavorable conditions may deter retirees from seeking comfort, safety, and proximity to family in their golden years.
Best: South Carolina
According to the AARP, South Carolina is quickly becoming one of the most popular retirement destinations in America. The reasons are partially economic, as the Palmetto State has some of the country's lowest property tax rates at an effective rate of 0.52. South Carolina also allows for a property tax exemption for homeowners aged 65 and above that allows for a $50,000 deduction from a home's taxable value.
Those residents can also deduct up to $10,000 in retirement income while not having social security benefits taxed at all. They can also take courses at state colleges without paying tuition and enjoy a warm but fairly temperate climate and all of South Carolina's natural beauty.
Worst: New York
While New York City's vibrant lights and bustling nightlife may be enticing, the state itself is often considered one of the least desirable places to live in the U.S. High overall living costs, especially for housing, contribute to this perception.
Despite not taxing Social Security benefits, New York imposes state income taxes and partially taxes retirement account withdrawals and private pensions. The state receives mixed reviews for elderly healthcare access and ranks last in the country for the availability of skilled nursing facilities per capita.
Best: Delaware
According to Travel + Leisure, Delaware has become such a quietly popular retirement destination that about 21% of its population is 65 and over. So, what's the attraction? The magazine noted that a combination of favorable tax conditions and easy access to high-quality healthcare makes The Diamond State a sensible choice.
People have also been attracted by the state's scenic coastline, but it's worth noting that property tends to get expensive in this area. For more affordable housing, the town of Millsboro comes highly recommended, and it's only a half hour from the coastline.
Worst: Hawaii
Retiring in Hawaii can be tough. It has more elderly care doctors than any other state, but living costs are sky-high especially housing. Social Security is tax-free, but people seeking Hawaii as a destination will be taxed on retirement savings and pensions.
To retire there, a person will need almost $100,000 yearly, and following the 4% rule, that means a nest egg of $2.5 million. Also, it's a five-hour flight from the mainland, which means expensive and time-consuming trips to see family. Hawaii might not be the best retirement spot for the wallet or for family visits.
Best: Virginia
According to the PODS storage company, Virginia's tax benefits make it an affordable candidate for a retirement destination, as social security income is not taxed, and other forms of retirement income are subject to a $12,000 tax deduction. The state's average property tax rate is also about 0.75%, which makes Virginia one of the 25 lowest states by this metric.
The state is also known for its fairly low cost of living, but its coastal position makes it prone to natural disasters. It's also a tough state to get around in, as its public transportation system outside of Richmond, Virginia Beach, and Fairfax is lacking. To make matters worse, it's a state known for bad traffic. Still, there's a lot here that makes retirement worth it.
Worst: Massachusetts
Massachusetts ranks as one of the least favorable states for retirement due to its taxing policies. Retirement savings have heavy taxes, including private pensions, 401(k), and traditional IRA withdrawals. Investment income faces a 5% state long-term capital gains tax and a high 12% tax on short-term capital gains.
According to data from the U.S. Census, the state also boasts the third-highest home prices in the nation, making it challenging for retirees to find affordable housing. Even with decent healthcare options, the harsh winters keep away many seeking a comfortable retirement.
Best: Colorado
According to the Colorado retirement service Retirepedia, some significant benefits to retiring in The Centennial State are its relatively low state income tax rate (4.63%) and the opportunity for deductions on retirement income. There's also no estate tax, and healthcare is not only higher quality here than in many other states but also less expensive.
However, Colorado is also a state with a fairly high general cost of living and requires disciplined water conservation. There are also elevation and wildlife concerns, but all of these benefits outweigh them. It's just worth mentioning the drawbacks to make sure folks know what they're getting into.
Worst: Mississippi
Mississippi stands out for retirees with its low housing costs and tax-friendly policies on retirement savings and Social Security withdrawals. However, the state's drawbacks overshadow these benefits. It ranks poorly in elderly care, lacking robust support systems for seniors.
To make things worse for the state's retirement prospects, Mississippi falls short in healthcare, boasting some of the lowest survival rates for cancer, strokes, and Alzheimer's disease in the nation. While its affordability may attract some retirees, those prioritizing healthcare and elderly support may find better options elsewhere.
Best: Iowa
According to The Des Moines Register, the financial company Bankrate considers Iowa the best state in the Union to retire in. And that started being true in 2022 when Governor Kim Reynolds signed a $1.9 billion tax cut into law that prevents Iowans over 55 from paying tax on retirement income. Whether this money comes from social security, pensions, 401Ks, or other annuities, the government can't touch it.
Moreover, Iowa's capital was ranked the fourth best city to retire in throughout the nation. As for what makes Des Moines so great, factors such as walkability, usual temperatures, crime rate, affordable housing, and the percentage of the population that's 65 or over were all considered.
Worst: New Jersey
According to NBC 4 New York, personal finance company WalletHub described New Jersey as the second-worst state to retire in. Although The Garden State's healthcare rating was considered decent enough, and its quality of life rating was at least middling, it wasn't enough to rescue the state from the bottom.
And that has to do with the heavy costs associated with living there. WalletHub ranked New Jersey 49th in terms of affordability in the nation, with only New York emerging as a more expensive place to live. In terms of both tax and cost of living, it takes some real financial security to retire in New Jersey.
Best: West Virginia
Although Travel + Leisure noted that the financial company Bankrate ranked West Virginia third among the best states to retire in at large, the state topped the list for affordability. Not only are the property taxes among the lowest in the country at 0.55%, but West Virginia also stopped taxing Social Security benefits in 2022.
The state is also known to have a generally low cost of living while also ranking among the top 20 safest states in the Union. The state also has a high concentration of residents over the age of 65, as these 1.77 million people make up a fifth of the state's total population. It sounds hard to find a better place to retire.
Worst: Kentucky
According to The Lexington Herald-Leader, finance company WalletHub considered Kentucky the absolute worst state in America to retire in. Although The Bluegrass State was considered fairly affordable, its affordability index was too middling to offset Kentucky's other problems for retirees.
In particular, the quality of life that most people there experience ranked within the bottom ten for U.S. states, while the quality of healthcare in Kentucky put it squarely in the bottom five. Due to these considerations, The Lexington Herald-Leader reported that Kentucky has one of the lowest life expectancies in America, with a total of 73.5 years.
Best: Missouri
On one hand, it would be misleading to call Missouri a perfect state to retire in. Forbes reported that the state taxes Social Security benefits and that its most viable retirement destination of Columbia both has a higher crime rate than average and isn't very walkable. However, it's also worth noting that there's a lot that both Columbia and Missouri at large have going for it.
There's no estate tax in The Show-Me-State, but there is abundant access to quality healthcare, low property prices, and a comfortable climate. According to The Kansas City Star, Missouri has a fairly low cost of living as a $1 million retirement fund would take about ten years to run out in Hawaii and 13 years to run out in Massachusetts. In Missouri, that would take over 21 years to happen.
Worst: Rhode Island
The circumstances of retiring in Rhode Island aren't all bad. According to WJAR, The Ocean State is known for offering quality healthcare, and the state's public hospitals rank seventh in the nation. However, the quality of healthcare found in the state wasn't quite enough to offset its issues for retirees.
Finance company WalletHub ranked Rhode Island 42nd in the nation for quality of life, but the real kicker for what makes it such a difficult state to retire in is affordability. As Christie Matherne of Wallethub told WJAR, Rhode Island made the bottom ten for how much of their population over 65 is living in poverty. It's just not an affordable place to live.
Best: Florida
Florida is the stereotypical retirement destination for Americans, but it has that reputation for a reason. In addition to boasting what WalletHub described as near the top of affordability and number one in quality of life compared to other states, Florida is also one of the only states in the Union with no state income or estate tax.
As for where future residents should specifically retire, Forbes recommended either Jacksonville or The Villages, depending on one's needs. Although The Villages have higher home prices, it has a low crime rate and good air quality. Conversely, Jacksonville's home prices are 23% below the national median, and it has far more doctors available than in The Villages, as well as a lower risk of hurricane damage. However, its crime rate is above the national average.
Worst: California
According to Kiplinger, California doesn't tax Social Security benefits and has low effective property tax rates. However, other forms of retirement income are fair game for taxes, which makes one of the biggest reasons not to retire there even worse.
Although CBS News noted decent infrastructure, quality of life, and healthcare in California, the nation's most populated state is nonetheless considered too expensive to live in for many retirees. Once tax considerations, crime, and population density are also factored in, the Golden State is often considered one of the worst places to retire in the nation. However, these circumstances vary from city to city.
Best: Wyoming
According to Travel + Leisure, Wyoming is practically a paradise for those who are looking to retire. Not only is it loaded with natural beauty, but retirees will find that it's a staggeringly affordable place to settle down. Not only does The Cowboy State not tax Social Security benefits, estates, or other forms of retirement income, but it's one of the only states not to have income tax at all.
Moreover, the state's cost of living is eight percent lower than the national average, and there is a high level of engagement among citizens over 60, who make up about a fifth of the state's total population. Wyoming is also one of the most robust states for laws against mistreating elders and has one of the lowest rates of violent crime in the country.
Worst: Oklahoma
Although affordability is a key consideration when looking for a good place to spend one's golden years, it isn't the be-all and end-all. And there are few states that make that wisdom quite as clear as Oklahoma's viability as a retirement destination. Although KFOR reported that WalletHub considered it a fairly affordable place, it doesn't give folks much bang for their buck.
That's because the Sooner State's high affordability rating was offset by both its quality of life and healthcare scores, which are some of the worst in the nation. More specifically, Oklahoma ranked at number 44 for both of these qualities, putting the state in the bottom ten for every category besides affordability.
Best: Arizona
Those who retire in Arizona aren't likely to worry much about taxes. According to the AARP, the state has a flat income task of 2.5% and is tied for the 12th lowest property taxes in the country. Moreover, Social Security benefits aren't taxed, and former federal workers can deduct up to $2,500 in pension income a year. Veterans can also deduct their military pay from state taxes.
That said, other forms of retirement income are taxable, and it's also a seller's market for homes in Arizona. That's because it's hard to build new houses there due to insufficient groundwater to support new development in many places. The warmth of its desert climate might appeal to some retirees, and there will be a robust community of peers waiting for them, but water scarcity is one of The Copper State's biggest disadvantages.
Worst: Washington
As The Tacoma News-Tribune reported, WalletHub's ranking of Washington state wasn't entirely dire. Healthcare in The Evergreen State was considered to be high-quality, and it is in the top 20 of America's states for quality of life. Moreover, Washington is one of just a handful of states with no income tax.
However, that doesn't make it an affordable place to live, nor one where residents shouldn't expect to encounter significant taxes. That's because Washington has some of the highest sales taxes in the country, and it's in the bottom ten for the nationwide cost of living circumstances. It also has the fourth-highest rate of property crime rates (such as burglary and vehicle theft) in the country.
Best: Pennsylvania
According to CNBC, Pennsylvania does not tax Social Security income, nor does it tax either private or public pensions or withdrawals from retirement savings accounts and plans. However, it's worth noting that the state has high property taxes, a flat state income tax, and is one of the few states to impose estate taxes.
However, NASDAQ noted that the heavy taxes the state levies are offset by its affordable housing and access to quality healthcare. Despite some of the state's overall drawbacks, CNBC also reported that Harrisburg, Reading, Lancaster, Scranton, Allentown, York, and Pittsburgh all made PayScale's top ten list for best cities to retire in throughout the entire country. Pennsylvania's obviously doing something right.
Worst: Louisiana
According to The Daily Advertiser, Louisiana's tax rates and fairly low cost of living may prove attractive to retirees, but the Lafayette newspaper noted that the state has little else to offer them. Where it excels in keeping costs down, Louisiana appears to fall short in most other key factors.
That's because The Bayou State's crime rate is the second-worst in the nation, and the sense of community well-being that permeates the state for retirees is third-worst, which points to a high likelihood of isolation. The quality of healthcare one can expect in Louisiana is apparently in the bottom five of the nation's standings, and even the weather is overly humid.
Best: Nebraska
On paper, Nebraska doesn't necessarily seem like the best state to retire in. As financial company Bankrate noted, it has higher property taxes than other states, and neither Social Security benefits nor other retirement income are exempt from state income taxes.
However, Nebraska's cost of living and especially its home prices are generally considered low enough to offset any taxing woes. It's also true that WalletHub's ranking puts Nebraska's quality of healthcare in the top 10 for all of America's states, and Bankrate added that 10.5% of residents consider healthcare too expensive. If that sounds bad, it's worth noting that only ten other states can say they're doing any better in this respect.
Worst: Oregon
Judging by how KGW8 describes it, Oregon seems like a lovely state to retire in. In addition to the scenic natural beauty of the Pacific Northwest, it has a relatively low crime rate. And while its rate of hospital beds for 1,000 people could be better, it has a robust number of doctors per 100,000 people.
But while all of these things are great, anyone looking to retire in Oregon will need some sizable savings to truly enjoy them. That's because Oregon's tax rates aren't terribly favorable to retirees and The Beaver State has the 15th-highest cost of living in the nation. And its brisk average temperature of 49 degrees can be enough to scare away some potential residents on its own.
Best: New Hampshire
In some respects, there are better states to retire in than New Hampshire. Yet, when compared to its New England neighbors, it's hard to find a better place to settle down and live out one's golden years. According to PODS, it's worth understanding that it has some of the nation's highest property taxes and a higher cost of living than the national average.
However, these steep levies are offset by the fact that the state does not have its own income tax, which means it won't cut into any retirement income. It's also true that about 20% of New Hampshire's population is 65 or over, which is a 40% jump from how things were a decade ago. WalletHub also ranked the state fifth for quality of healthcare and eighth for overall quality of life.
Worst: Texas
Since Texas has no personal income tax and often touts its relatively low cost of living, it might seem like a great place to retire at first glance. However, Yahoo! Finance encouraged wariness of The Lone Star State's self-image, as it also has the sixth highest property taxes in the nation, and sales taxes could be as high as 8.25% depending on local jurisdictions.
It's also true that utilities cost more than the national average in Texas and that the state's vulnerability to natural disasters adds special costs retirees wouldn't see elsewhere. It's also a state where a car is essential to get around, and it's below the national average in quality of life and healthcare. Ultimately, the costs aren't as low as they seem, and new residents aren't necessarily getting what they pay for.
Best: Idaho
According to the Idaho Business Review, The Gem State is a particularly affordable place to retire. Although the state is known for high transportation costs and housing prices, utilities there cost less than almost anywhere else in the country. Furthermore, its tax policies are particularly friendly to retirees.
That's not only because its flat income tax was recently lowered to 5.8% but also because the state taxes neither inheritances nor Social Security benefits. The state also offers a $120 grocery tax credit to each person above the age of 65. Although the quality of Idaho's healthcare hovers around the national average, healthcare costs (especially in assisted living) are below the national average.
Worst: Maryland
In many respects, Maryland is a state that shouldn't be so hard for retirees to live in. Finance company WalletHub credits the state for having both quality of life and healthcare ratings above the national average. Bankrate largely agreed despite adding that the state's mediocre crime rate wasn't exactly a selling point.
However, both agreed that retiring in Maryland was in no way an affordable experience. As far as both services were concerned, The Old Line State was in America's bottom ten for cost of living and tax friendliness. As a resident named Penny Smith told WMAR-2 News, "There are more taxes for retirees in Maryland than some of the surrounding states, so it's more expensive. It is."
Best: Montana
According to Tanko Law, Montana is a particularly tax-friendly retirement destination. This is partially because its tax rates are generally low, but there are reasons beyond the lack of sales tax and the flat income tax rate of 6.65%. Although it's not quite accurate to say that Social Security benefits and pensions aren't taxed at all, deductions are still possible for both of them.
In addition to its tax circumstances, Montana is also generally known for having a low cost of living. Both WalletHub and Bankrate also ranked the quality of Montana's healthcare high, with Bankrate noting that it's also considered more affordable than many other places throughout the nation.
Worst: Indiana
Neither WalletHub nor Bankrate were optimistic about a potential retiree's prospects if they chose Indiana as their retirement destination. Although the two finance companies disagreed on how affordable it is to retire in The Hoosier State, they agreed that affordability would be one of the only reasons to do it.
That's because neither service was impressed with Indiana's quality of life, with Bankrate going as far as to consider it the worst in the nation. WalletHub's rankings put this index as simply below average, but agree that Indiana's healthcare quality puts it in the bottom ten for the nation. Bankrate was even harsher in this respect and considered the state's healthcare quality the third-worst in the country.
Best: Minnesota
The biggest deterrent to retiring to Minnesota is its famously cold weather, but those who are undeterred by this could certainly do worse for a retirement destination. That said, it would be misleading to call it a cheap one, as there's a state tax on Social Security benefits and a state inheritance tax.
However, Forbes noted that homes in Rochester are below the national average for home prices. It's also true that Minnesota is low on crime and features one of the best healthcare systems in America. Not only is it home to the famous Mayo Clinic, but the state has an extraordinarily large number of doctors per capita.
Worst: Maine
Due to its high quality of life and impressive healthcare system, both WalletHub and Bankrate would likely agree that Maine is a great state to live in. However, that doesn't necessarily mean it's the greatest state to retire in, and that's not just because the weather can get so cold there.
Although Down East Magazine noted that Maine has some of the lowest costs of living and housing prices in New England, that still puts it above the national average for both. According to PODS, what also doesn't help is its 5.8% state tax rate. Although Maine doesn't tax Social Security benefits, taxes on other retirement income can run as high as 7.15%.
Best: South Dakota
South Dakota may not be the warmest place in America, but those not looking to retire on sunny shores will nonetheless find The Mount Rushmore State has a lot to offer them. For starters, Forbes noted that the state has no income or estate tax, which means retirees will be able to keep what they bring to their new homes.
Although WalletHub considered South Dakota pricier than the national average in terms of cost of living, the service also credited the state for having one of the top ten healthcare systems in the country. That said, Bankrate's comparatively lower score suggests this healthcare's quality comes at a price. However, both services agree South Dakota is above average in terms of quality of life.
Worst: Illinois
Although WalletHub considered Illinois a state where residents could enjoy an impressive quality of life, their rankings described The Prairie State's healthcare system as hovering slightly below the national average. While Bankrate had a less dim view of the state as a whole, the firm ranked healthcare in Illinois even lower, suggesting that's pricier than average.
However, that price point speaks to WalletHub's greatest issue with Lincoln's birthplace. Due to a combination of market factors and taxes, it is simply not an affordable place to retire. As far as the finance company saw it, only Vermont, New Jersey, and New York were more expensive places to live.
Best: Georgia
Although neither WalletHub nor Bankrate found Georgia a particularly impressive state in terms of quality of life or healthcare, they both had to admit that it wasn't only the beautiful weather drawing people there. It may have shortcomings, but it's also one of the most affordable states in which to live.
That affordability wasn't enough to impress WalletHub, but it made Bankrate consider Georgia the 15th best state in America to choose as a retirement destination. As for why it's so affordable, Forbes explained that there is no estate tax, and Social Security benefits are exempt from income tax. Better yet, up to $65,000 of other retirement income is exempt from state taxes, and home prices are well below the national average in Georgia.
Worst: Arkansas
According to Yahoo! Finance, Arkansas scored high in terms of affordability, with one of the nation's lowest costs of living and its lowest costs for in-home services. However, that didn't stop WalletHub from declaring it one of the ten worst places to retire in America. Indeed, their statistics warned that retirees looking to live out their golden years in Arkansas will get what they pay for.
The finance company declared The Natural State's healthcare system as among the worst in the nation, and only Mississippi ranked lower for quality of life. According to Yahoo! Finance, part of that was due to its low rate of museums, theaters, and other cultural infrastructure per capita. Although Bankrate's standings were kinder to Arkansas, the firm also listed the state as having one of the country's worst crime rates.
Best: Utah
In both WalletHub and Bankrate's national standings, Utah performed fairly well as a retirement destination. Although Utah is known to tax Social Security benefits and pensions, it nonetheless performed well in terms of affordability. But while the two finance companies could agree on this, they differed sharply in other categories.
Although WalletHub described Utah's healthcare system as trending just slightly below the national average, Bankrate considered it one of the best in the country. And while WalletHub credited Utah for a decent quality of life, Bankrate considered it one of the worst states in the nation for this. To explain this gap, Bankrate is factoring the apparently low cost of Utah's healthcare into its ranking and is conscious of Utah's reputedly terrible air quality for much of the state (especially in the winter).
Worst: New Mexico
Although KFOX 14 noted that the city of Las Cruces is considered one of the best cities in the country to retire in, that honor apparently does not extend to New Mexico as a whole. Although both WalletHub and Bankrate consider New Mexico about average in terms of affordability, neither is optimistic about the quality of life there.
WalletHub considered The Land Of Enchantment one of the ten worst states for quality of life, which was partially predicated on having the highest rate of property crime in the nation. Although Bankrate was kinder on the state in a general sense, the finance company went as far as to consider New Mexico the most crime-ridden state in the Union.
Best: North Carolina
Although both WalletHub and Bankrate were lukewarm at best on North Carolina's healthcare system, the first of those finance companies was more encouraging when it came to the state's quality of life and affordability. In both categories, The Tar Heel State was considered above average.
According to Forbes, this quality of life ranking was likely based on the state's decent air quality, economy, and climate. However, the affordability index is far easier to explain. That's because Forbes noted that the state does not have an estate tax, and its income tax rates do not affect Social Security benefits.
Worst: North Dakota
For the most part, North Dakota seems to have little to offer those seeking to retire there. Although Forbes noted that there's no state estate tax, it's also true that the Flickertail State taxes social security income.
If that weren't enough, Bankrate scored North Dakota fairly low for quality of life and as the tenth worst state for healthcare costs. Although crime there is considered below the national average, it's also a state that often gets bitterly cold. Overall, not the best retirement destination.
Best: Wisconsin
According to Kiplinger, Wisconsin is a tax-friendly state for retirees, as they don't tax social security income and other kinds of retirement income can be subject to a $5,000 deduction under certain conditions. Military pay that is federally exempt is also exempt here.
Other than that, the Badger State scored high for quality and cost of healthcare on both WalletHub's and Bankrate's lists. Both also considered it a reasonably affordable state to live in with decent quality of life. The only drawback is the cold weather.
Worst: Alabama
Although both WalletHub and Bankrate considered Alabama one of the most affordable states to live in throughout the entire nation, the unfortunate truth is that people hoping to retire there will get what they pay for. Although Bankrate also mentioned it's a great state for weather, it has some serious drawbacks.
That's because both finance companies rated the Cotton State as one of the worst in the nation in terms of access to quality healthcare. They both also ranked Alabama in the national bottom ten for quality of life and Bankrate described it as having one of America's worst crime rates.
Best: Michigan
According to Michigan's government website, social security benefits are not taxed in the Great Lake State. Furthermore, Fox 17 reported that the state legislature rolled other retirement taxes back even further in 2023, saving affected households about $1,000 each.
Moreover, WalletHub rated the state highly in terms of quality of life, while Bankrate considered it one of America's most affordable states to live in. Although both institutions considered the state middling for healthcare, the biggest drawback to life in Michigan is the chilly weather.
Worst: Kansas
There may be worse places to retire than the Sunflower State but that doesn't mean it has much to offer retirees. For one thing, Kiplinger mentioned that social security benefits are taxed in Kansas, making it one of 11 states to do so.
Although Bankrate considers Kansas an affordable state to live in, they also noted that it has a higher crime rate than average and isn't a state that scored high on quality of life. WalletHub agreed, adding that the quality of healthcare there was also below average.
Best: Ohio
According to the AARP, Ohio does not tax social security benefits, nor does the state tax the retirement income of nonresidents. There are also a few options for tax credits on retirement income for adjusted gross income of less than $100,000.
In addition to these benefits, Ohio is above the national median for affordability and is close to the top ten for quality of life. According to Bankrate, the only problem is that healthcare costs can add up quickly in the Buckeye State.
Worst: Nevada
Although Nevada has a reputation as an affordable and tax-friendly state (for those who can avoid the casinos, anyway), the Registered Social Security Analysts suggest that reputation is a little overblown. Not only is social security income partially taxed in the Silver State, but withdrawals from other retirement accounts are fully taxed.
Moreover, WalletHub ranked Nevada in the nation's bottom ten for both quality of life and quality of healthcare. Bankrate's news wasn't much better, as Nevada was also considered among the top ten states for high crime rates.
Best: Tennessee
Not only will people retiring to the Volunteer State not have to pay any taxes on their social security benefits, but they also won't have any of their other retirement income taxed because the AARP noted that Tennessee has no personal income tax.
That's not the only thing that makes retiring there affordable, as WalletHub credited Tennessee for having one of the nation's lowest costs of living. However, Bankrate noted that access to quality healthcare is harder here than in most other states and the crime rate is one of the nation's highest. Choose carefully.
Worst: Connecticut
According to the Connecticut Department Of Revenue Services, the Constitution State can tax social security benefits up to 50% of benefits received. It doesn't help that both WalletHub and Bankrate consider it one of the nation's least affordable states at large.
That said, there are some benefits to living here for those who can afford it. WalletHub noted that Connecticut's healthcare system is one of the best in the nation, while Bankrate said it has one of the country's highest quality of life scores and one of the lowest crime rates.
Best: Vermont
Although Vermont is admittedly an expensive place to retire, the benefits of doing so there are relative to other parts of New England. That's because — according to the state government's website — it is possible for social security benefits to be exempt from taxes as long as adjusted gross incomes are below $50,000 for single people and below $65,000 for married couples.
To sweeten the pot, WalletHub and Bankrate both described the Green Mountain State as having great and reasonably affordable healthcare systems and one of the nation's best scores for quality of life. Bankrate added that it has one of the nation's lowest crime rates, too.