10 Most Tax-Friendly States for Retirees in 2024

Retirement is a milestone we all dream of reaching. While many older adults may choose to age in place when they retire, others dream of moving to different places. If you plan to stay in the U.S., then you have fifty states to choose from! However, some states are more tax-friendly to seniors than others. Keep reading to find out more about these 10 contenders.

Wyoming

Imagine tax-free living with stunning mountain vistas—that’s Wyoming in a nutshell! Enjoy no income tax, no inheritance tax, and low property taxes. While it boasts unique landscapes and Grand Teton National Park, it’s not a great place for sun worshippers. Winters in the Cowboy State are long and harsh, with heavy snow and cold temperatures.

Cost of living: Moderate. According to Sofi, Wyoming boasts the lowest average cost of living among all of the Rocky Mountain states and ranks among the top 20 most affordable states in the nation. In 2021, the average cost of living in Wyoming was $47,832 per year.

Climate: Cold winters, warm summers.

5 Best Places to Retire in Wyoming

1. Cody, WY

If you want to be close to Yellowstone National Park, look no further than Cody! This town of about 9,800 people boasts small-town charm and ample opportunities for any outdoorsman. Additionally, the tax burden is low and the friend-making potential is high.

2. Lander, WY

This family-friendly town of about 7,600 people is chock-full of homestyle restaurants, historical attractions, and plenty of retirement communities. According to SmartAsset, it has 5.41 medical centers per 1,000 residents.

3. Powell, WY

With a little under 6,500 residents, Powell may be small but packs a punch in terms of restaurants, campgrounds, and low tax burdens! Of course, there are sites related to its homesteading history, too!

4. Jackson, WY

Jackson, Wyoming, is a charming mountain town known for its stunning landscapes, outdoor recreation, western culture, and proximity to some of the country’s most spectacular national parks. Whether you’re seeking adventure in the great outdoors or a taste of Western hospitality, Jackson has something to offer visitors year-round!

5. Worland, WY

Despite its rural location, Worland offers a range of services and amenities to residents, including schools, healthcare facilities, grocery stores, restaurants, and retail shops. This charming small city of around 5,000 residents serves as the county seat of Washakie County and is the largest community in the area.

South Dakota

Embrace the prairie charm with no income tax, low property taxes, and no inheritance tax. Home to the iconic Mount Rushmore National Memorial, South Dakota is known for its diverse geography, including the rugged Black Hills, expansive prairies, rolling hills, and the eastern region’s fertile farmland. And while this state, has a rich cultural heritage, potential residents should be mindful of potentially higher healthcare costs in some areas.

Cost of living: Low. South Dakota is generally considered to be an affordable state to live in compared to many other parts of the United States. As of 2021, the average cost of living per year was $47,740.

Climate: Four distinct seasons with hot summers and cold winters.

5 Best Places to Retire in South Dakota

1. Belle Fourche, SD

Belle Fourche is a picturesque community with a rich history, vibrant Western culture, and access to the natural beauty of the northern Black Hills. Additionally, there are over 49 hospitals within one mile of the city!

2. Huron, SD

If you want a welcoming community in a scenic Midwestern setting, then Huron might be the perfect retirement fit for you! Huron offers several attractions and points of interest for visitors. The South Dakota State Fair, one of the largest annual events in the state, is held in Huron each summer and features agricultural exhibits, livestock shows, carnival rides, and entertainment.

3. Mitchell, SD

Mitchell is perhaps best known for the Corn Palace, a unique cultural attraction that draws visitors from around the world. The Corn Palace is a multi-purpose arena and auditorium decorated with murals made from thousands of bushels of corn, grains, and grasses. It hosts concerts, sporting events, trade shows, and community gatherings. Whether you’re interested in exploring its cultural attractions, enjoying outdoor activities, or experiencing small-town charm, Mitchell has something to offer visitors of all ages.

4. Madison, SD

Madison is home to Dakota State University and several lakes. Of course, it also offers multiple amenities, such as shopping, dining, and tourist attractions!

5. Yankton, SD

Yankton is one of the oldest cities in South Dakota and has a rich history dating back to the mid-19th century. This town is closely associated with the Lewis and Clark Expedition, which passed through the area in 1804 on its journey westward. Additionally, Yankton offers various outdoor recreational opportunities for residents and visitors.

Alaska

This state’s vast wilderness areas provide important habitat for wildlife and offer opportunities for wildlife viewing and photography. You can witness breathtaking northern lights while enjoying no income tax or inheritance tax. Alaska offers unparalleled opportunities for outdoor adventure and recreation, but the remoteness and high cost of living might require extra planning!

Cost of living: High. Unfortunately, life in the Last Frontier doesn’t run cheap! The average cost of living is $54,331 per year.

Climate: Long, cold winters and short, cool summers.

5 Best Places to Retire in Alaska

1. Anchorage, AK

Anchorage is the largest city in Alaska by population, with over 290,000 residents. That’s over 40 percent of Alaska’s population! The city’s location provides stunning views of both mountains and ocean.

2. Wasilla, AK

Wasilla is situated in the south-central part of Alaska, approximately 43 miles north of Anchorage. Like much of Alaska, Wasilla offers opportunities to view the northern lights, especially during the winter months. Visitors can venture outside the city to see the mesmerizing light displays in the night sky.

3. Palmer, AK

Palmer is home to the Alaska State Fairgrounds, which host the annual Alaska State Fair, one of the largest and most popular events in the state. The fair features agricultural exhibits, livestock shows, carnival rides, live entertainment, food vendors, and arts and crafts. Of course, Palmer offers plenty of outdoor recreational opportunities, too!

4. Fairbanks, AK

Fairbanks is one of the best places in the world to see the aurora borealis, or northern lights, especially during the winter months. This town experiences long daylight hours during the summer months due to its high latitude. Visitors can enjoy activities such as midnight sun hikes, golfing at midnight, and outdoor festivals that take advantage of the extended daylight.

5. Sterling, AK

Sterling is a picturesque community with a strong outdoor recreation culture, rich cultural heritage, and access to some of Alaska’s most iconic natural attractions. Thanks to its proximity to the Kenai River, it’s the perfect retirement destination for any angler!

Florida

Trade in your shovel for sunscreen. Often hailed as the ultimate retirement destination, Florida boasts no state income tax and sunny beaches. With over 21 million residents, Florida is the third-most populous state in the United States, after California and Texas. Be aware of potentially higher property taxes depending on location.

Cost of living: Varies widely. According to the Bureau of Economic Analysis, the average cost of living per year in Florida is around $50,689 per person.

Climate: Subtropical with hot, humid summers and mild winters.

5 Best Places to Retire in Florida

1. The Villages, FL

Even in Florida, The Villages might be the ultimate retirement destination. The Villages is one of the largest retirement communities in the world, covering over 32 square miles of land. Additionally, it offers a wide range of housing options, including single-family homes, patio homes, villas, and apartments. The community features various architectural styles and floor plans to suit different preferences and budgets.

2. Port St. Lucie, FL

Port St. Lucie is one of the largest cities in Florida by population, with over 200,000 residents. This dynamic city boasts a diverse economy and a wide range of recreational opportunities.

3. Ocala, FL

Ocala is known as the “Horse Capital of the World” due to its rich equestrian heritage and thriving horse industry. The city is home to numerous horse farms, training centers, equestrian events, and equine-related businesses. Ocala offers a high quality of life with a low cost of living, a friendly community atmosphere, and access to amenities such as shopping centers, restaurants, cultural institutions, and recreational facilities.

4. Port Charlotte, FL

Port Charlotte is known for its waterfront lifestyle, with many residential properties situated along canals, rivers, and the harbor. Boating, fishing, and water sports are popular recreational activities in the area. Of course, there are plenty of golf courses, too!

5. St. Augustine, FL

Founded in 1565 by Spanish explorers, St. Augustine is the oldest continuously inhabited European-established settlement in the continental United States. Tourism is a major industry in St. Augustine, with millions of visitors flocking to the city each year to experience its historic charm, cultural attractions, and coastal beauty. The city offers a wide range of accommodations, restaurants, shops, and entertainment options to cater to visitors’ needs.

Nevada

Lady Luck might just smile upon you in Nevada with no income tax and no inheritance tax. Be prepared for the desert heat and potential crowds in certain areas like Las Vegas.

Cost of living: Varies depending on location.

Climate: Arid with hot, dry summers and mild winters.

5 Best Places to Retire in Nevada

1. Gardnerville, NV

With the highest number of retirement communities per capita, Gardnerville offers abundant opportunities for outdoor recreation. The nearby Sierra Nevada mountains and Lake Tahoe provide opportunities for skiing, snowboarding, mountain biking, and other outdoor activities.

2. Laughlin, NV

Laughlin is known for its relaxed and laid-back atmosphere, making it a popular destination for those seeking a break from the hustle and bustle of city life. Whether you’re looking to unwind by the pool, try your luck at the casino, or explore the great outdoors, Laughlin offers something for everyone.

3. Mesquite, NV

Mesquite is home to several championship golf courses, including courses designed by renowned golf architects such as Arnold Palmer and Jack Nicklaus. Additionally, Mesquite offers a variety of accommodations, including hotel casinos, resorts, and RV parks.

4. Boulder City, NV

If you like gambling, you might not want to move to Boulder City. It’s one of only two Nevada cities that outlaw it! Regardless, Boulder City is a charming and picturesque city with a rich history and stunning natural landscapes.

5. Carson City, NV

The capital of Nevada, Carson City hosts several events and festivals throughout the year. Whether you’re interested in exploring historic sites, enjoying outdoor activities, or experiencing Nevada’s capital city, Carson City has something to offer everyone!

Tennessee

Music lovers, take note! Tennessee offers no income tax, low property taxes, and no inheritance tax, making it a budget-friendly choice. The birthplace of Dolly Parton and Aretha Franklin, it has a rich cultural history. However, would-be residents should take note of potential limitations in healthcare access depending on location.

Cost of living: Low. The tenth most affordable state in the nation, the average cost of living here is $42,469 per year.

Climate: Humid subtropical with hot summers and mild winters.

5 Best Places to Retire in Tennessee

1. Tellico Village, TN

With a population of a little over 7,000, Tellico Village is one of the largest and most established retirement communities in Tennessee. It offers a range of housing options and a vibrant social scene, with numerous clubs, organizations, and interest groups for residents to join.

2. Germantown, TN

This Memphis suburb boasts a low crime rate and low healthcare costs. The city’s strong sense of community and commitment to quality living make it a desirable place to call home.

3. Chattanooga, TN

Chattanooga offers residents a high quality of life with a low cost of living, affordable housing options, and a range of amenities and services. The Tennessee Riverwalk, a scenic paved trail that runs along the river, offers opportunities for walking, jogging, and cycling with beautiful views of the water and surrounding landscape.

4. Memphis, TN

Often referred to as the “Home of the Blues” and the “Birthplace of Rock ‘n’ Roll” due to its influential music scene, Memphis has a rich and diverse history. In addition to Graceland and the National Civil Rights Museum, Memphis is home to several other cultural attractions, including the Memphis Zoo.

5. Kingston Springs, TN

This town of a little over 6,000 residents offers a peaceful and relaxed setting for those seeking a quieter way of life. Kingston Springs hosts several community events and festivals throughout the year, including the Kingston Springs Art in the Park festival.

Washington

Embrace the Pacific Northwest beauty with no income tax and no inheritance tax. Washington State is often referred to as the “Evergreen State” due to its lush forests and abundant greenery, particularly on the western side of the Cascade Range. Be mindful of the above-average sales tax and potentially high cost of living in some areas like Seattle.

Cost of living: Varies widely. However, it’s important to note that the cost of living in the Evergreen State is 16% higher than the national average.

Climate: Temperate with mild, wet winters and cool, dry summers.

5 Best Places to Retire in Washington

1. Wenatchee, WA

With its scenic beauty and tight-knit community living, Wenatchee offers residents a high quality of life. The city’s affordable cost of living, relatively low crime rate, and access to amenities make it an attractive place to live and work.

2. Gig Harbor, WA

Gig Harbor has a rich maritime heritage dating back to its early days as a fishing and boatbuilding community. The city’s historic downtown area, known as the “Gig Harbor Waterfront,” is a popular destination for shopping, dining, and entertainment.

3. Snohomish, WA

Located approximately 30 miles northeast of Seattle, Snohomish boasts a variety of parks, green spaces, and recreational facilities for residents and visitors to enjoy. While there aren’t a lot of retirement communities, the historic downtown and myriad of outdoor activities are sure to tempt any retiree!

4. Olympia, WA

Washington’s capital city offers a vibrant cultural and arts scene, with numerous galleries, theaters, and performance venues. Additionally, Olympia is committed to environmental sustainability and conservation efforts.

5. Clarkston, WA

Clarkston residents have access to healthcare services through facilities such as the Tri-State Memorial Hospital, which provides medical care, emergency services, and specialized treatments to residents of the Lewis-Clark Valley. The city’s small-town atmosphere, friendly residents, and affordable cost of living make it an attractive place to live and raise a family.

New Hampshire

History buffs and outdoor enthusiasts might love New Hampshire’s no income tax or inheritance tax. New Hampshire is home to several prestigious colleges and universities, including Dartmouth College, the University of New Hampshire, and Keene State College. It’s also a popular tourist destination! However, before you pack your bags, it’s important to note that property taxes can be higher in some areas, and winters can be harsh.

Cost of living: Above average. Like most of the New England states, it’s a pricey place to call home, with the average cost of living totaling around $56,727 per year.

Climate: Humid continental with cold, snowy winters and warm, humid summers.

5 Best Places to Retire in New Hampshire

1. Portsmouth, NH

Located along the coast of the Atlantic Ocean, Portsmouth is a charming historic city known for its colonial architecture, cultural attractions, and vibrant arts scene. Retirees can enjoy waterfront dining, boutique shopping, and cultural events while taking advantage of the city’s walkable downtown area and access to outdoor recreation along the coast.

2. Exeter, NH

Exeter has a low tax burden and a storied history dating back to the Revolutionary War. Its downtown area features well-preserved historic buildings, charming shops, art galleries, and restaurants. The Exeter Historical Society offers walking tours and exhibits highlighting the town’s rich history and architectural heritage.

3. Concord, NH

As the state capital, Concord offers a mix of urban amenities and natural beauty, with a historic downtown area, cultural attractions, and nearby outdoor recreation areas. This city provides convenient access to healthcare services, shopping, dining, and entertainment options, making it an appealing choice for retirees looking for a well-rounded lifestyle.

4. Keene, NH

Nestled in the southwestern part of the state, Keene is known for its scenic beauty, vibrant arts community, and historic downtown area. Retirees can enjoy cultural events, farmers markets, and outdoor activities such as hiking, biking, and skiing in nearby Mount Monadnock State Park. The town’s affordable cost of living makes it an attractive option for retirement.

5. Durham, NH

Home to the University of New Hampshire, Durham offers a lively college-town atmosphere with access to educational and cultural opportunities. Retirees can enjoy outdoor recreation along the Oyster River, explore downtown shops and restaurants, and attend cultural events and performances at the university.

Delaware

While Delaware has an income tax, it offers numerous deductions and credits for retirees, making it potentially tax-friendly. As a matter of fact, there’s no sales tax! Property taxes vary by location, but there’s no inheritance tax.

Cost of living: Above average. Sadly, the cost of living in Delaware is 8% more expensive than the national average.

Climate: Humid subtropical with hot, humid summers and mild winters.

5 Best Places to Retire in Delaware

1. Bethany Beach, DE

Bethany Beach is a family-friendly resort town known for its pristine beaches, charming boardwalk, and relaxed atmosphere. Retirees can enjoy swimming, sunbathing, and exploring nearby state parks and nature preserves.

2. Rehoboth Beach, DE

Known for its beautiful sandy beaches and vibrant boardwalk, Rehoboth Beach is a popular destination for retirees seeking a relaxed coastal lifestyle. The town offers shopping, dining, and outdoor recreational activities year-round.

3. Lewes, DE

Located near Rehoboth Beach, Lewes is a historic coastal town with quaint streets lined with shops, galleries, and restaurants. It boasts a mixture of waterfront parks, historic sites, and a laid-back atmosphere that any retiree will enjoy.

4. Wilmington, DE

Delaware’s largest city, Wilmington offers a mix of urban amenities, cultural attractions, and historic charm. Wilmington offers a wide range of museums, theaters, and galleries, as well as scenic riverfront parks and gardens. It’s close to Philadelphia, too!

5. Middletown, DE

Situated in northern Delaware, Middletown offers a suburban lifestyle with easy access to urban amenities in nearby Wilmington and Philadelphia. The town has a strong sense of community and affordable housing options.

Alabama

Southern hospitality awaits in Alabama, an income tax-free haven with a low cost of living and no inheritance tax. The state is characterized by diverse landscapes, including mountains in the north, forests in the central region, and beaches along the Gulf Coast.

Cost of living: Low. Alabama is the fourth-cheapest state in America. If you move here, you can expect to pay around $39,657 per year.

Climate: Humid subtropical with hot, humid summers and mild winters.

5 Best Places to Retire in Alabama

1. Huntsville, AL

Known as the “Rocket City,” Huntsville offers a mix of urban amenities and outdoor recreation opportunities. It has a low cost of living, excellent healthcare facilities, and a vibrant arts and culture scene.

2. Birmingham, AL

Alabama’s largest city, Birmingham, offers a diverse array of entertainment, dining, and cultural attractions. The city has several historic neighborhoods, beautiful parks, and access to top-notch healthcare.

3. Tuscaloosa, AL

Tuscaloosa is home to the University of Alabama and offers a blend of Southern charm and modern amenities. Retirees can enjoy cultural events, outdoor recreation, and a low cost of living.

4. Gulf Shores, AL

For retirees who love the beach, Gulf Shores is an ideal destination. This coastal town offers miles of white sandy beaches, outdoor recreational activities, and a relaxed beach lifestyle. It’s home to a state park and the Alabama Gulf Coast Zoo.

5. Auburn, AL

Home to Auburn University, Auburn offers a college town atmosphere with access to educational and cultural resources. The city boasts beautiful parks and a thriving downtown area. Auburn University offers several educational programs for older adults, so if you want to partake in lifelong learning, Auburn might be the perfect new home for you!