Choosing the right place to retire is a big decision, and it’s about more than just sunny weather or low taxes. It’s about finding a state that fits your needs – whether that’s affordable living, access to healthcare, or a sense of community. This guide highlights five states that stand out for retirees in 2025: New Hampshire, Florida, Arizona, Delaware, and South Carolina. Each offers unique benefits, from tax savings to lifestyle options, helping you make an informed choice for your next chapter.
Here’s what we’ll cover:
- Tax advantages and affordability in these states
- Healthcare access and quality of life considerations
- Lifestyle options, including recreational opportunities and retirement communities
Let’s explore what makes these states appealing for retirees, so you can feel confident about your decision.
1. New Hampshire
New Hampshire provides retirees with a mix of financial perks and scenic living. Known as the Granite State, it combines a lack of state income tax with breathtaking natural landscapes, making it an appealing option. However, retirees need to weigh the full financial and lifestyle picture before deciding if it’s the right fit.
Tax Policies
New Hampshire earns its reputation as a retiree-friendly state, particularly when it comes to taxes. Kelley R. Taylor, Senior Tax Editor at Kiplinger.com, highlights this advantage:
“New Hampshire stands out with no tax on wages or sales, making it a tax-friendly choice for many.”
As of January 1, 2025, the state no longer taxes retirement income, including Social Security, pensions, and withdrawals from retirement accounts. This change follows the elimination of the 3% tax on dividends and interest in 2024. Additionally, New Hampshire has no state sales tax, offering further savings for retirees.
However, these benefits are offset by the state’s high property taxes. With an effective property tax rate of 1.89% – one of the highest in the nation – homeowners face an average annual property tax bill of over $6,097. This is an important factor for retirees to consider when budgeting for housing.
Affordability
While property taxes are steep, New Hampshire still offers a reasonable cost of living for retirees. The state ranks 43rd in cost of living nationwide, with average monthly expenses around $4,727 per resident. This balance can make retirement here financially manageable for many.
Housing costs are relatively moderate compared to nearby states. The median home value in New Hampshire is $367,200, putting it well below Massachusetts’ median of $525,800. In Manchester, the state’s largest city, the cost-of-living index is 116.1, making urban living more accessible than in many other parts of New England.
Additionally, the housing market is showing signs of leveling out. The percentage of homes selling above the list price has dropped to 51.1%, an 8.3-point decrease from the previous year. This shift may create better opportunities for retirees looking to buy.
Health Care Access
Healthcare access is a critical factor for retirees in New Hampshire, and the state faces some challenges in this area. With 20.8% of residents aged 65 or older as of 2024, and projections showing that one-third of the population will be over 65 by 2030, the demand for senior healthcare services is growing rapidly.
Healthcare availability varies significantly across the state. Rural areas, in particular, face limited access to medical services, and transportation can be a major hurdle for seniors. Nearly 25% of New Hampshire seniors live alone, and the state ranks second nationally for seniors at risk of social isolation, which can further complicate access to care.
In 2020, healthcare spending in New Hampshire averaged $11,793 per resident. However, Medicare support programs, such as Senior Medicare Patrol, are available to help retirees navigate healthcare costs and avoid fraud or billing mistakes.
Amenities and Lifestyle
Beyond financial and healthcare considerations, New Hampshire offers retirees a high quality of life, especially for those who enjoy the outdoors. The state’s natural beauty is a major draw, with the White Mountains, serene lakes, and extensive hiking trails providing endless recreational opportunities.
New Hampshire also boasts low crime rates, adding to its appeal for retirees seeking a safe and peaceful environment. The absence of a sales tax makes everyday purchases, from groceries to dining out, more affordable. Even major expenses, like buying a car, come with significant savings compared to states with sales tax.
However, the state’s aging population is beginning to reshape the demand for services, which could impact availability in the future.
For retirees who love nature, value safety, and want to reduce their tax burden, New Hampshire is an enticing option. However, it’s important to carefully consider the challenges, such as healthcare access and high property taxes, before making the move.
2. Florida
Florida has earned its reputation as a top retirement destination by offering a mix of financial perks and an active, sunny lifestyle. From tax benefits to diverse communities and year-round warmth, the Sunshine State has something for nearly every retiree. However, costs and lifestyle options can vary widely depending on the region.
Tax Policies
Florida is one of the most retirement-friendly states when it comes to taxes. The state boasts no income tax, which means pensions, Social Security, and other retirement income go untouched. Add to that the absence of inheritance and estate taxes, and retirees can save a considerable amount – especially those on fixed incomes.
Homeowners also benefit from Florida’s property tax system. The homestead exemption rewards long-term residents with tax savings, provided they establish permanent residency and don’t claim similar exemptions elsewhere. Florida’s average property tax rate is 0.79% of a home’s assessed value, with a median effective rate of 0.82% – both slightly below the national median of 0.90%.
While Florida does have a 6% state sales tax – averaging 7% when local taxes are added – it remains competitive compared to high-tax states like California, New York, and Illinois. For retirees moving from these states, the savings can be significant, making Florida an attractive option.
Affordability
Affordability in Florida depends heavily on location, with housing costs and living expenses varying across the state. As of June 2025, the median home price in Florida was $384,811, about 4.2% higher than the national average of $369,147. Overall, the state’s cost of living is 2% above the national average, placing it 33rd in affordability nationwide.
Some cities are pricier than others. Fort Lauderdale, for instance, has living costs 22% above the national average, while Palm Coast offers more budget-friendly living, coming in at 13% below the national average. The Tampa Bay area reflects the state’s middle ground, with single-family homes averaging around $410,000 as of July 2025.
Florida’s real estate market is undergoing a shift. According to Tim Weisheyer, 2025 Florida Realtors President:
“Florida’s single-family home market is adjusting to a new normal. Elevated mortgage rates have made some buyers more cautious, and the surge of domestic in-migration we saw during the pandemic is leveling off.”
This adjustment could create better buying opportunities for retirees, as home inventory grows and prices stabilize in certain areas. The decline in cash offers, particularly in markets like Tampa Bay, might also make it easier for traditional buyers to compete.
Amenities and Lifestyle
Florida’s retirement communities are as diverse as its landscapes, offering something for every interest and activity level. The state is home to The Villages, the largest active adult community in the U.S., as well as a variety of other communities tailored to different hobbies and lifestyles. Whether your passion is golf, water sports, lifelong learning, or the arts, there’s a community for you.
Many communities go the extra mile with full-time activities directors who organize events and help residents feel at home. For instance, On Top of the World in Ocala offers 54 holes of golf across three courses and more than 175 clubs covering everything from arts to education. For those seeking luxury, Boca West in South Florida features high-end amenities, including homes with stunning garden, lake, and golf views.
Specialized communities cater to unique interests as well. VeronaWalk in Naples features a European-inspired clubhouse called The Town Center, where residents enjoy wine tastings, trivia nights, and activities like poker and sunset sailing. Outdoor enthusiasts might prefer places like Babcock Ranch, which boasts hiking trails and bike-friendly paths for active living.
Florida’s warm climate makes it easy to enjoy outdoor activities year-round. With its extensive coastline, retirees can take advantage of beaches, boating, and water sports. The state also has a robust infrastructure tailored to its older population, with more than 20% of residents aged 65 and older – 4% higher than the national average. Whether you’re drawn to its financial perks or its vibrant communities, Florida offers a retirement experience that’s hard to beat.
3. Arizona
Arizona has firmly secured its place as the second most popular retirement destination in the U.S., attracting over 23,000 retirees in 2022 alone. With 1.3 million residents aged 65 and older, making up 18% of its population, the state offers a well-established infrastructure designed with retirees in mind. Boasting over 300 sunny days each year, along with retiree-friendly tax policies and a variety of retirement communities, Arizona offers an ideal combination of affordability and an active, outdoor-focused lifestyle.
Tax Policies
Arizona is one of the most tax-friendly states for retirees, offering financial perks that help stretch retirement income. The state features a flat income tax rate of 2.5%, the lowest among the 14 states with flat tax systems. This uniform rate ensures that higher-income retirees are taxed at the same rate as others, providing significant savings.
“Apart from generally decent weather, Arizona may be a good choice financially speaking for those looking to retire. It has a flat 2.5% individual state income tax, which differs from many states that have progressive tax brackets that model after the federal tax brackets. This means if you show higher income, you will not be taxed more than your neighbor who shows a lower income on the state side of taxes”, explains Laura DiFiglio, CFP, ChFC, a financial advisor with Northwestern Mutual.
The state also eliminates estate and inheritance taxes, and retirees receiving U.S. government civil service or Arizona state and local government pensions can claim an annual tax deduction of up to $2,500.
Property taxes are another area where Arizona shines, with an average rate of 0.45%, keeping annual costs around $1,800. For retirees aged 65 and older who meet income requirements, the Senior Property Valuation Protection Option freezes property tax values, providing long-term financial stability.
“The biggest advantage people aren’t aware of is for people over 65. Arizona caps the property tax amount if you qualify on an income basis after age 65, allowing for more stable planning and limiting surprises down the road”, notes Ekenna Anya-Gafu, CFP®, AAMS®, AIF®, and CEO of Pacific Canyon Investments.
These tax benefits make Arizona an attractive choice for retirees, even as living costs differ across the state.
Affordability
Although Arizona’s overall cost of living is 18% higher than the national average, certain cities like Surprise, Bullhead City, and Sierra Vista offer more budget-friendly options with costs at or below the national average. This regional diversity allows retirees to plan their finances flexibly while benefiting from Arizona’s low tax burden.
The state’s varied geography also caters to different lifestyles and budgets, ranging from desert landscapes to mountain retreats. Retirees can find communities that align with their financial and personal preferences while enjoying the state’s sunny climate and tax advantages.
Amenities and Lifestyle
Arizona’s retirement communities are built to take full advantage of the state’s sunny weather and abundant outdoor activities. With access to over 30 state parks and numerous national parks, retirees can enjoy hiking, camping, and other outdoor pursuits year-round.
For those seeking luxury, Robson Resort Communities offer high-end living at locations like PebbleCreek and SaddleBrooke Ranch, with amenities such as golf courses, resort-style pools, fitness centers, and vibrant social calendars. Similarly, Encanterra provides an upscale experience with features like the Alvea Spa, multiple dining options, and a Tom Lehman-designed championship golf course.
More budget-conscious retirees can explore communities like Sun City Festival, which offers two recreation centers, comprehensive fitness facilities, and pools while maintaining affordability.
Many communities also provide “stay and play” packages, allowing potential residents to sample the lifestyle before making a decision. Activities such as university lectures, farmers markets, and cultural events like art galleries and music festivals ensure there’s something for everyone.
Newer developments like CantaMia at Estrella and Trilogy at Verde River blend modern amenities with Arizona’s natural beauty. These communities feature village centers, learning facilities, and outdoor spaces designed to complement the state’s sunny climate. Arizona’s mix of diverse communities, outdoor activities, and financial advantages makes it a standout choice for retirees looking for a well-rounded lifestyle.
4. Delaware
Delaware ranks as the 10th most popular state for retirement living, with its population of residents aged 65 and older expected to grow by over 41% between 2020 and 2040. Known as the First State, Delaware offers retirees a mix of tax perks, affordable housing, and a prime location that helps stretch retirement budgets. Let’s take a closer look at what makes Delaware a standout choice for retirees.
Tax Policies
Delaware’s tax structure is designed to help retirees keep more of their income. It’s one of just four states that doesn’t impose a sales tax, and both Social Security and Railroad Retirement benefits are completely exempt from state taxes. Additionally, residents aged 60 and older can exclude up to $12,500 of qualified retirement income from their state tax obligations each year.
When it comes to property taxes, Delaware keeps costs manageable. The average effective property tax rate is just 0.55%, with a median home value of $305,200, translating to an average annual property tax bill of $1,674. Seniors also benefit from the Senior School Property Tax Credit, which offers homeowners aged 65 and older a 50% credit on school property taxes, capped at $500 per year.
Delaware also eliminates inheritance taxes, making it easier for retirees to pass on their assets without additional tax burdens. However, for those who became Delaware residents on or after January 1, 2018, eligibility for the Senior School Property Tax Credit requires maintaining legal domicile in the state for at least 10 consecutive years.
Affordability
Compared to neighboring states like New Jersey and Maryland, Delaware offers more budget-friendly housing options without sacrificing access to East Coast amenities. With a median home value of $305,200, housing in Delaware is significantly more affordable than Maryland’s median of $380,500 or the District of Columbia’s $705,000.
These lower housing costs, combined with tax benefits like income exclusions and property tax credits, make Delaware an appealing choice for retirees looking to maximize their savings.
Amenities and Lifestyle
Delaware’s retirement communities cater to residents aged 55 and older, providing a mix of leisure, activity, and social connection. Housing options range from apartments to single-family homes, often featuring maintenance-free living arrangements that ease daily responsibilities and free up time for enjoyment.
For example, Heritage Shores in Bridgeville offers an active lifestyle with amenities like an 18-hole Arthur Hills Championship Golf Course, fitness facilities, pools, tennis and pickleball courts, restaurants, and a variety of classes and clubs.
If coastal living is more your style, K. Hovnanian’s Four Seasons at Scenic Harbor in Lewes offers a luxurious clubhouse experience close to downtown Lewes. Residents enjoy easy access to tax-free shopping, dining, and entertainment, along with a vibrant social scene.
“Whether you’re sipping cocktails at the outdoor bar, gathering around the firepit, or exploring the Lewes Historic District, you’ll never be short of friends to make or things to do.” – K. Hovnanian Homes
Delaware’s location is another major draw. Its proximity to cities like Philadelphia, Baltimore, and Washington D.C. allows retirees to enjoy the quiet charm of small-state living while still having easy access to urban attractions. Many communities also provide helpful services like shuttles to shopping centers and medical appointments, supporting residents in maintaining their independence while staying connected to essential services and activities.
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5. South Carolina
South Carolina stands out as a retirement destination by combining tax perks, affordable living, and a relaxed lifestyle. With over 200 miles of coastline, a mild climate, and living costs 9% below the national average, retirees can enjoy both savings and comfort. The state also boasts access to excellent amenities and healthcare options, making it a well-rounded choice for your golden years.
Tax Policies
South Carolina has earned its reputation as a haven for retirees, thanks to its tax-friendly policies. One of the biggest advantages is that Social Security benefits are fully exempt from state taxes, helping retirees hold onto more of their income.
Additionally, retirees can deduct up to $10,000 (or $15,000 in certain cases) from retirement income, thanks to senior-specific standard deductions. Starting in 2025, single filers aged 65 and older can claim a total standard deduction of $17,000, while married couples filing jointly can deduct $33,200 – both higher than the amounts available to younger taxpayers.
Property taxes are another bright spot, averaging just 0.52%. Seniors aged 65 and older can benefit from the Homestead Exemption, which removes the first $50,000 of their home’s value from property taxes. To take advantage of this, contact your local County Auditor’s Office.
These generous tax policies, paired with the state’s overall affordability, make South Carolina an appealing option for retirees.
Affordability
Living in South Carolina is easier on the wallet, especially when compared to national averages. Housing costs are 18% lower, and single retirees can live comfortably on about $92,000 per year. For those seeking even greater savings, certain areas of the state offer even more attractive pricing:
- Anderson: Costs are 8% below the state average and 16% below national levels.
- Columbia: Living expenses run 11% below national averages.
- Myrtle Beach: Even this popular coastal area is 8% below national costs.
Here’s how South Carolina compares across essential expense categories:
| Cost Category | Compared to the National Average |
|---|---|
| Housing (Buy and Rent) | 18% lower |
| Transportation | 7% lower |
| Goods & Services | 11% lower |
| Utilities (Monthly) | 10% higher |
| Food | Same as national average |
| Healthcare | Same as national average |
Amenities and Lifestyle
Whether you’re looking for an active retirement or a more laid-back vibe, South Carolina has something for everyone. The state’s rich history, scenic beauty, and vibrant communities offer endless opportunities for enjoyment.
Take Sun City Hilton Head in Bluffton, for example. This community is packed with amenities, including 3 golf courses, resort-style pools, 3 fitness centers, a performing arts theater, and over 100 chartered clubs. You’ll also find pickleball and tennis courts, leisure trails, and even a dog park. Homes here start in the low $300,000s.
For those drawn to coastal luxury, Cresswind Charleston in Summerville is another standout. It features a 12,000-square-foot clubhouse, pickleball and tennis courts, an event lawn, and opportunities for fishing and kayaking. Homes range from the $400,000s to $700,000s.
“In our Coastal South Carolina communities, every day is designed for discovery, connection and relaxation.” – Cresswind
If you prefer an all-inclusive experience, Okatie Pines Retirement Community might be the perfect fit. It offers 24/7 service, resort-style dining, and amenities like a movie theater, fitness center, and library.
“We’ve thought of everything. The value and luxury built into our long list of amenities are what sets us apart.” – Okatie Pines Retirement Community
Health Care Access
South Carolina also ensures retirees have access to quality healthcare. The state is home to world-class hospitals, and healthcare costs align with national averages. This balance of affordability and quality means retirees can stay healthy and independent while enjoying all that South Carolina has to offer.
“Whether you are looking for an active lifestyle or a peaceful retirement, South Carolina offers everything retirees could want out of a retirement destination!” – Seafields
State Comparison: Pros and Cons
Finding the right state for your retirement involves weighing several factors that influence both your daily life and financial well-being. Each of the five states we’ve reviewed comes with its own perks and challenges. Here’s a quick snapshot to help you make an informed choice:
| State | Pros | Cons |
|---|---|---|
| New Hampshire | • No tax on earned or retirement income • No capital gains tax • No sales tax |
• High property taxes • Harsh winters |
| Florida | • No state income tax • No taxes on pensions or Social Security benefits • Year-round warm weather • Wide range of retirement communities |
• Property taxes near 0.8% • 6% sales tax plus local rates • Cost of living 3.1% above the national average • Hurricane risk |
| Arizona | • Social Security income is tax-free • Affordable memory care at $3,458 per month • Low property taxes • Dry climate that may ease arthritis symptoms |
• Capital gains taxes apply • Intense summer heat • Varying sales tax rates |
| Delaware | • No sales tax • No tax on Social Security benefits • Low property taxes at 0.5% |
• Capital gains taxes apply • Partial taxation on other retirement income |
| South Carolina | • No Social Security tax • $15,000 retirement income deduction for those 65+ • Cost of living 11% below the national average • Property taxes averaging 0.53% |
• 7% sales tax • Capital gains taxes apply • Hurricane risk near the coast • Hot, humid summers |
This table highlights the unique benefits and drawbacks of each state, helping you match your retirement goals with what each location has to offer.
Taxes play a major role in retirement planning. For instance, New Hampshire provides complete freedom from income taxes, while Florida eliminates state income taxes altogether. However, both states have tradeoffs, such as property tax rates or sales taxes.
Healthcare costs and quality also vary. Arizona is notable for its affordable memory care services, a critical factor for many retirees as the senior population is projected to make up 21% of the U.S. population by 2030.
Climate preferences are another key consideration. If you’re looking for warmth, Florida and Arizona deliver, though each comes with its own challenges – Arizona’s scorching summers, Florida’s humidity and hurricane season, and New Hampshire’s bitter winters.
Social connections can make or break the retirement experience. Engaging in community activities is especially important, as nearly 30% of seniors are at risk of social isolation. States with active senior centers and supportive networks can enhance your quality of life significantly.
“Quality long-term care is essential for the well-being of older adults, especially for those with chronic conditions.” – SGMays.org
The cost of living also varies widely. South Carolina, for instance, is 11% below the national average, offering a more affordable option compared to Florida, which is 3.1% above. Property tax benefits differ, too: Florida’s homestead exemption can ease property tax burdens, while Delaware and South Carolina boast low property tax rates of 0.5% and 0.53%, respectively.
Ultimately, your choice should reflect the factors that matter most to you – whether it’s taxes, healthcare, climate, or a sense of community.
Conclusion
Deciding where to retire is about finding the right balance between comfort, lifestyle, and financial peace of mind. Here’s a quick look at what makes each state on our list appealing for retirees:
- New Hampshire: Known for its tax perks, this state has no income tax or sales tax and ranks as the safest in the nation for neighborhoods.
- Florida: Offers year-round sunshine, a variety of retirement communities, and an active lifestyle.
- Arizona: Features affordable healthcare, a dry climate, and mild winters – ideal for those who prefer warmer, less humid conditions.
- Delaware: Coastal beauty meets financial benefits with no sales tax and low property taxes.
- South Carolina: Combines affordable living costs with tax-friendly policies, making it an excellent choice for overall value.
To make the best decision, explore your top choices during different times of the year. Pay close attention to factors like healthcare availability, community life, and overall affordability.
At Ultimate Senior Resource, we’re here to help you find the right fit. Whether you’re drawn to New Hampshire’s tax advantages, Florida’s vibrant warmth, or South Carolina’s affordability, we connect you with trusted communities that align with your priorities. Let this guide be your first step toward a retirement that feels just right for you.
FAQs
What should I look for in a state when choosing a retirement community besides taxes and weather?
When deciding on a state for retirement, it’s important to weigh several factors to find the right fit for your lifestyle and needs. Start with healthcare access – being close to reliable medical facilities and specialists can make a big difference, especially as health needs evolve. Another key consideration is the cost of living; make sure it aligns with your financial plans so you can enjoy retirement without unnecessary stress.
You’ll also want to explore the availability of local amenities. From parks and walking trails to cultural events and shopping options, these can add convenience and enjoyment to your daily life. Don’t overlook safety, either. Take some time to research crime rates and the overall security of the community you’re considering.
Lastly, think about social opportunities. Whether it’s joining clubs, attending local events, or volunteering, staying socially active can enrich your retirement years. A vibrant sense of community engagement can turn a new location into a welcoming home.
What should retirees know about healthcare access in the best states for retirement?
Healthcare access differs widely among the top retirement states. For instance, New Hampshire earns praise for its affordable, high-standard healthcare, while Minnesota is recognized for its advanced facilities and robust long-term care services.
When planning for retirement, it’s essential to weigh factors such as out-of-pocket expenses, the availability of specialized medical services, and local Medicare coverage options. These elements can have a significant effect on both your health and your financial stability, making thorough research and tailored planning crucial to meet your unique needs.
What unique amenities and lifestyle features do retirement communities in these states offer?
Retirement communities across the leading U.S. states for 2025 are crafted to offer seniors an active and enjoyable lifestyle. These communities often include wellness-focused features such as fitness centers, walking paths, and spa services, all aimed at supporting both health and relaxation. To add convenience and security, many incorporate smart home technology and provide on-site medical care.
Residents have plenty of opportunities to stay engaged, with amenities like pickleball courts, golf courses, and access to serene lakes or beaches. Dining options often mimic the experience of a fine restaurant, while cultural events and educational programs keep the atmosphere lively and enriching, appealing to a wide range of interests and hobbies.