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A Guide To 10 Highly-Rated States to Retire

Choosing where to spend your best years is easier when you know which states consistently rise to the top.

In this guide, we highlight 10 highly rated places to retire, explain what makes them popular with retirees, and share a clear framework for choosing the right state for your lifestyle and budget.

How we chose these states

We cross-referenced multiple reputable sources, including WalletHub’s annual Best & Worst States to Retire, Bankrate’s Best and Worst States to Retire, Kiplinger’s State-by-State Guide to Taxes on Retirees, and AARP’s Livability Index. Collectively, these sources evaluate affordability, health care, quality of life, taxes, and community amenities.

Rather than chasing a single ranking, we selected states that appear near the top across several credible lists and that offer strong fundamentals for retirees: reasonable costs, access to care, recreation, safety, and livable communities. Think of this as a data-informed short list to start your search, not a one-size-fits-all verdict.

The 10 highest-rated states to retire

1) Florida

Florida remains a perennial favorite for retirees thanks to its no state income tax, extensive senior services, and year-round sunshine. Large retiree communities mean abundant social clubs, 55+ housing, and specialists in geriatric care. The trade-offs: rising homeowners insurance, hurricane risk along the coasts, and higher prices in popular metros.

  • Affordability: No state income tax; varied housing costs by metro.
  • Health care: Strong access to hospitals and specialists in major regions.
  • Lifestyle: Beaches, golf, and active-adult communities.
  • Watch-outs: Property insurance and storm preparedness.

2) Colorado

Colorado scores high for health outcomes, outdoor recreation, and overall well-being. Active retirees love the trails, parks, and mountain towns, while Front Range cities offer top-tier hospitals. Housing can be pricier along the I‑25 corridor, but smaller cities and plains communities may offer better value.

  • Affordability: Moderate taxes; housing varies widely by region.
  • Health care: Quality hospital systems in Denver, Boulder, Colorado Springs.
  • Lifestyle: Four-season outdoors, cultural amenities, universities.
  • Watch-outs: Altitude and winter conditions in mountain areas.

3) Virginia

Virginia blends strong health care access, coastal-to-mountain lifestyles, and robust veteran benefits. Retirees appreciate relatively moderate taxes (with some exemptions for Social Security and retirement income) and a milder Mid-Atlantic climate. Northern Virginia is pricier; coastal and central regions can be more affordable.

  • Affordability: Mixed—higher near D.C., lower in many smaller metros.
  • Health care: Excellent access around Richmond, Hampton Roads, NoVA.
  • Lifestyle: Beaches, history, Blue Ridge mountains, wineries.
  • Watch-outs: Property taxes and prices vary sharply by county.

4) Delaware

Delaware routinely ranks as a top retiree destination for tax friendliness—no state sales tax and relatively low property taxes—plus easy access to the Mid-Atlantic corridor. Coastal towns offer resort living, while central and northern areas provide suburban conveniences and medical care.

  • Affordability: Tax-friendly; housing varies by beach proximity.
  • Health care: Solid access, with major systems in New Castle County.
  • Lifestyle: Beaches, boardwalk culture, day trips to Philly/Baltimore.
  • Watch-outs: Crowds and prices spike in peak beach season.

5) Wyoming

Wyoming is frequently near the top for retiree taxes, boasting no state income tax and generally low property taxes. Outdoor lovers find world-class recreation, open spaces, and quiet small towns. Note the rural character: longer drives, fewer hospitals outside regional hubs, and wintry weather.

  • Affordability: Very tax-friendly; lower overall tax burden.
  • Health care: Good regional care, but distances can be significant.
  • Lifestyle: Mountains, fishing, national parks nearby.
  • Watch-outs: Winter, wind, and limited urban amenities.

6) South Dakota

South Dakota combines a low overall tax burden with strong fiscal stability and a reasonable cost of living. Regional medical centers serve broad areas, and the Black Hills offer scenic recreation. Winters can be harsh, and much of the state is rural—great for quiet living, less so for city conveniences.

  • Affordability: No state income tax; modest housing costs.
  • Health care: Quality systems in Sioux Falls and Rapid City.
  • Lifestyle: Parks, fishing, and low congestion.
  • Watch-outs: Cold winters and longer travel for specialty care.

7) Montana

Montana shines for quality of life, low population density, and breathtaking scenery. It has no general state sales tax and a growing network of regional medical facilities. Popular mountain towns can be pricey; winters are real, especially away from the milder valleys.

  • Affordability: No general sales tax; property taxes vary by county.
  • Health care: Improving access in key hubs like Missoula and Bozeman.
  • Lifestyle: Fishing, hiking, national parks, small-town feel.
  • Watch-outs: Seasonality and housing costs in resort areas.

8) Utah

Utah’s advantages include safety, health metrics, and unparalleled access to national parks. The Wasatch Front provides growing health systems and cultural amenities. Housing has appreciated in recent years, but suburban and exurban communities may offer better value.

  • Affordability: Moderate taxes; shop around submarkets for housing.
  • Health care: Strong systems in Salt Lake City and Provo/Orem.
  • Lifestyle: Skiing, red-rock deserts, active communities.
  • Watch-outs: Dry climate; air quality inversions in winter.

9) Arizona

Arizona is popular for its warm, dry climate, golf and hiking culture, and extensive 55+ developments, especially in the Phoenix and Tucson areas. Overall costs are moderate, and health care access is broad in metro regions. Consider heat risk, water scarcity issues, and higher cooling bills in summer.

  • Affordability: Moderate taxes; wide range of home prices by suburb.
  • Health care: Major systems across Phoenix/Tucson; many specialists.
  • Lifestyle: Sunshine, outdoor living, active-adult amenities.
  • Watch-outs: Extreme heat and water policy considerations.

10) Idaho

Idaho has surged in popularity thanks to its outdoor lifestyle, relatively low crime, and slower pace. Boise offers urban amenities and health systems, while smaller towns offer affordability. Growth has pushed prices higher in some areas; winters and wildfire smoke can be seasonal factors.

  • Affordability: Generally reasonable costs; rapid growth affects prices.
  • Health care: Best access in Boise metro and regional hubs.
  • Lifestyle: Rivers, trails, and community-oriented towns.
  • Watch-outs: Seasonal smoke and winter conditions.

Key considerations before you move

  • Taxes beyond income: Look at property, sales, and estate/inheritance taxes. The Tax Foundation’s overview of state income tax rates plus Kiplinger’s retiree tax map can help you compare.
  • Health care access: Check hospital quality and provider availability near your target neighborhoods using Medicare Care Compare.
  • Insurance & risk: Factor in homeowners insurance and natural hazards (hurricanes, wildfire, flood). Explore local risk with FEMA’s National Risk Index.
  • Cost of living & housing: Compare price-to-income dynamics and monthly ownership costs; NAR’s Housing Affordability Index is a helpful benchmark.
  • Climate & comfort: Consider heat, humidity, snow, and air quality. NOAA’s U.S. Climate Normals let you preview typical temperatures and precipitation.
  • Lifestyle fit: Beyond weather, look at walkability, cultural life, volunteer opportunities, and proximity to family.
  • Services & transportation: Evaluate transit options, senior services, and airport access for visiting family and travel.
  • Try before you buy: Rent for a season to test health networks, neighborhood noise, HOA rules, and day‑to‑day routines.

How to choose the right place to retire

  1. Define your must‑haves: Climate, budget, health care distance, and lifestyle priorities (e.g., beaches vs. mountains).
  2. Shortlist 3–5 states: Use data-driven lists (WalletHub/Bankrate), tax tools (Kiplinger), and community metrics (AARP).
  3. Zoom into metros/neighborhoods: The “best state” still comes down to the right zip code for safety, amenities, and services.
  4. Run the numbers: Model total annual costs (housing, taxes, insurance, utilities, travel). Stress-test for inflation and health surprises.
  5. Test live: Spend 2–8 weeks in peak and off-peak seasons to experience crowds, weather, and costs.
  6. Plan your care network: Identify primary care, specialists, and backup hospitals before you move.
  7. Decide on ownership vs. renting: Renting can preserve flexibility for the first 1–2 years while you learn the area.

Final take

The “best states to retire” share common strengths—balanced costs, solid medical access, engaging lifestyles, and reasonable taxes. Use the data to create a short list, then validate it with on‑the‑ground visits and a clear financial plan. Your perfect retirement spot is the one that fits your health, budget, and day‑to‑day happiness—whether that means beaches in Florida, desert sun in Arizona, mountain air in Colorado, or quiet small‑town living in the Plains.