The Sunshine State Still Shines Brightest for Your Golden Years
While everyone talks about Florida as the obvious choice for retirement, there’s something most folks don’t realize about this tropical paradise. Naples, Florida, has now secured the No. 1 rank for retirement destinations, with retirees noting overall happiness of a place’s residents as the top consideration when determining a place to retire this year. What makes this even more surprising is that Florida is one of the most tax-friendly states for older workers and retirees, as it’s one of just seven states that don’t collect personal income tax, allowing residents to benefit from tax-free pensions and retirement pay, along with no state taxes on Social Security or investment income. The financial benefits are staggering – imagine keeping every dollar of your Social Security check while enjoying year-round sunshine. Florida also doesn’t have an inheritance or estate tax, meaning you can leave more wealth to your loved ones. But here’s the kicker that might surprise you: Orlando, FL, is the best place to retire, living up to its reputation as a haven for seniors, with one big reason being the lack of taxes, as Orlando is one of the most tax-friendly cities, and Florida does not have an estate or inheritance tax (or even income tax).
Orlando: The Mouse That Roared Into Retirement Royalty
Orlando, FL, is the best place to retire, living up to its reputation as a haven for seniors, with one big reason being the lack of taxes, as Orlando is one of the most tax-friendly cities, and Florida does not have an estate or inheritance tax (or even income tax). Think Orlando is just about theme parks? Think again. While Orlando doesn’t have a particularly low cost of living, it is the 9th-cheapest city for homemaker services and the 20th-cheapest for adult day health care out of the more than 180 cities in our study. The real magic happens when you discover that Orlando provides a plethora of recreational activities for retirees, ranking as the second-best city for recreation overall, with an especially high number of music venues, fishing facilities, art galleries and adult volunteer activities. What’s truly mind-blowing is that Orlando ranks at the top of the country when it comes to gerontologists and home health care facilities per capita. You’re not just retiring to a fun city – you’re moving to a place designed around senior care and entertainment.
Miami: Where Culture Meets Coastal Retirement Bliss
Miami, FL, is the second-best place to retire, in large part because it has an abundance of activities popular with retirees. The numbers tell an incredible story about Miami’s retirement appeal. Miami ranks at the top of the country when it comes to adult volunteer activities, art galleries and fishing facilities per capita, and it has the fifth-most museums and 11th-most recreation and senior centers. But here’s what makes Miami really special for retirees: tax-friendliness is another good reason to retire in Miami, as it’s located in Florida, it has no estate or inheritance taxes, no income taxes, and it ranks among the cheapest cities for taxes in general. The cherry on top? Miami is the fifth-most walkable city in the country, and the vast majority of residents have access to quality public transportation within walking distance of their homes. Imagine walking to world-class restaurants, galleries, and beaches without worrying about driving or parking.
The Delaware Diamond: America’s Best-Kept Retirement Secret
Here’s something that’ll shock you: Delaware just nabbed the top spot as the best state for retirement, and most people don’t even know about it. Delaware (1), West Virginia (2), Georgia (3), South Carolina (4) and Missouri (5) are the top five states for retirement in 2024. What makes Delaware so special? Delaware is one of the most tax-friendly states for retirees, with the state having no sales tax, which means your purchases stretch further, and Social Security benefits are not taxed, with generous exemptions for other types of retirement income, including pensions and 401(k)s. The financial advantages keep getting better. Delaware provides significant property tax relief for seniors over 65, with homeowners qualifying for the Senior School Property Tax Credit, which offers a reduction of up to $400 on their annual property taxes, combined with the state’s already low property tax rates. It’s like getting a yearly bonus just for living there.
Texas: Where Your Dollar Goes Further Than Your Imagination
Don’t count Texas out of the retirement game just yet. America’s second-most populous state is a haven for retirees, as whether you’re seeking warmer weather, affordable housing, lower taxes or engaging leisure activities, you will be able to find it somewhere in the state of Texas. The financial picture is pretty compelling too. One of the biggest draws for retirees is the financial affordability Texas provides, with no state income tax and a generally lower cost of living compared to other popular retirement destinations, allowing seniors to stretch their retirement savings further. Want some real numbers? This is especially true in cities like Killeen, Beaumont and Brownsville, where the cost of housing, groceries and other essentials is significantly lower. When you choose a location like McAllen, where you’ll need under $1,400 for most of your monthly needs, early retirement seems closer than ever, with a one-bedroom apartment costing about $592 per month in rent.
McAllen: The Texas Town Where Retirement Dreams Come True
The McAllen metro area, located at the southern tip of Texas, offers modest retirement income that is usually enough to pay for housing, due to McAllen’s low home prices, with the affordable housing and mild winter temperatures making McAllen a popular destination for snowbird retirees. The cost breakdown will make your jaw drop. McAllen is quite affordable, with a one-bedroom apartment costing about $592 per month in rent, with groceries, housing, and utilities well below the cost of most Texas cities, and even healthcare costs are lower here than in other areas, costing around $391 per month. McAllen is also an ideal retirement destination for birdwatching and has a World Birding Center at Quinta Mazatlan, a historic country estate. Picture yourself spending your mornings watching exotic birds and your afternoons enjoying the warm Texas sun, all while your retirement savings stretch like never before.
North Carolina: The Research Triangle of Retirement Excellence
Overall, North Carolina is a great state for retirees, with retirement-friendly tax structures, inexpensive housing, safe cities, and some of the best medical care in the world. What makes North Carolina truly special is its diversity of options. Boasting a diverse landscape that encompasses the majestic Blue Ridge Mountains, picturesque coastal plains, and vibrant urban centers, the Tar Heel State offers something for everyone, with its mild climate, thriving arts scene, and renowned healthcare facilities providing retirees with ample opportunities for outdoor adventure, cultural exploration, and a relaxed pace of life. According to reporting in the Raleigh News & Observer, Carteret County is ranked No. 1 for destinations that offer retirees a balance of activities, favorable living conditions, and affordability. The healthcare angle is particularly impressive: According to research by Home Bay, the highest population of seniors is in Asheville, at 30%.
Asheville: Mountain Magic with Big City Healthcare
If you love the great outdoors, Asheville is one of the best places to live in the North Carolina mountains, as the city is home to Biltmore, America’s largest home, which attracts tourists from all over, providing no shortage of dining and shopping options to add to all the outdoor recreation that comes with any mountain town, though cost of living and housing costs are above average, making Asheville a better choice for affluent retirees. You’ll love retiring in Asheville, as one of the most picturesque towns, Asheville is located right smack dab in the gorgeous Blue Ridge Mountains, with the inspiring backdrop routinely attracting artists and writers of all stripes, giving Asheville a truly creative cultural vibe, combined with a restaurant scene where fresh, locally sourced ingredients are used in innovative ways. This isn’t just about pretty views – it’s about a whole lifestyle transformation where every day feels like a vacation.
Midwest Magic: Where Your Retirement Money Works Overtime
The Midwest offers a pretty neat retirement package when it comes to stretching your dollars, as in many Midwestern cities, you can snag a three-bedroom house for what you’d pay for a tiny condo in popular coastal cities, with everyday expenses, including groceries, utilities, and car insurance, typically costing less in these states, making you feel like you can actually enjoy life—rather than pinching pennies. The Motley Fool’s analysis ranked Tennessee, Kansas, South Dakota, Missouri, and Oklahoma as the most affordable states for retirees based on overall cost of living scores. As the cost of living in popular retirement destinations continues to rise and climate change increases housing and insurance costs in coastal areas, seniors are looking to the Midwest for their retirement, with communities around the region topping ranking after ranking for the best places to retire, noting not just their affordability, but also their focus on senior well-being and abundant outdoor recreation.
Muncie, Indiana: College Town Charm with Retirement-Friendly Prices
Muncie, located about 60 miles northeast of Indianapolis, is the second-largest city on our list after Toledo, home to 65,000 full-time residents, with the city being home to Ball State University, ballooning when school is in session, and the historic downtown has shops selling handmade products and restaurants serving local flavors, all infused with a healthy dose of Hoosier hospitality. The financial benefits are genuinely eye-opening. Seniors are attracted to Muncie and Delaware County for its low cost of living—monthly food expenses are the third lowest on this list ($579), transportation costs are the second lowest ($1,180), and the median home value is $127,600. Think about it: you could own a beautiful home outright for less than what many people pay for a single year of rent in expensive cities. Plus, you’re living in a vibrant college town with all the cultural benefits that brings.
Gregory, South Dakota: Small Town, Big Savings
Tranquility and a strong sense of community are the main draws in this small town in south central South Dakota, with multiple parks, a golf course, and proximity to the Missouri River providing its 1,219 full-time residents with plenty of ways to stay active and enjoy the outdoors, and another reason to consider settling down there is affordability, as Gregory County has one of the most affordable housing markets on this list, with the county median home value at just over $129,000 and estimated monthly food costs at $645. But here’s the kicker that makes South Dakota truly special: South Dakota doesn’t tax Social Security benefits, and it’s one of the states with zero tax on any other type of retirement income. The cost of housing in the area might make your jaw drop if you’re used to city prices; the median monthly cost of housing is only $589, with monthly transportation and food costs also low, even by Midwestern standards, and the median home value in Gregory County is $129,000, so if you’re considering selling your home in a pricier region to move here, you could potentially buy a place in Gregory outright.
The Shocking Truth About America’s Retirement Revolution
What emerges from all this data is a picture that might surprise you: America’s best retirement destinations aren’t necessarily where you’d expect them to be. The 2025 study from WalletHub compared the 50 states across 46 key indicators, from tax rates and the cost of living to access to quality medical care and fun activities, to narrow down the best states to retire in. As people live longer, finding an affordable place to retire is more important than ever, with housing costs going up, median home prices up 24% from 2020 to 2024, and according to Pew Research, inflation has also increased the cost of food and goods, with 74% of Americans expressing concern over rising prices in late 2024, while the national inflation rate average has more than doubled since 2020. The smart money is moving to places that offer the best combination of affordability, healthcare, and quality of life – and many of these gems are hiding in plain sight across America.
Did you expect these hidden retirement paradises to offer such incredible value for your golden years?