10 Best States to Retire in 2027

Direct Answer

The best overall state to retire in is Florida, where no state income tax, no tax on retirement income, and a warm climate make it the long-standing leader, with a median home price near $400,000. For value, Tennessee wins as Best Value, with no income tax, a low cost of living, and a median home price around $340,000.

This list is for retirees weighing taxes, healthcare access, climate, and cost of living over a fixed-income horizon. Costs below range from well below the national average in the South and Plains to higher in desirable Western states. Every state is ranked on real, current tax rules, healthcare metrics, and affordability data relevant to retirees.

1. Florida 🏆 BEST OVERALL

Florida has no state income tax, no tax on Social Security or pension income, and no estate or inheritance tax, the core reason it leads retirement rankings.

The median home price is roughly $400,000, though property insurance has risen due to hurricane risk. Healthcare access is strong in metros like Tampa, Orlando, and Naples. The climate is warm year-round, and large retiree communities provide built-in social networks.

It ranks #1 for the best tax picture plus climate and healthcare access. It fits retirees prioritizing warm weather and tax savings, who should budget carefully for insurance.

2. Tennessee 💎 BEST VALUE

Tennessee has no state income tax, including no tax on retirement income, and a cost of living well below the national average.

The median home price is about $340,000. Healthcare is strong in Nashville, home to many hospital companies including HCA, and Knoxville. The four-season climate is milder than the North, and the Smoky Mountains offer recreation.

It earns Best Value for combining no income tax with low housing costs and solid healthcare. It fits retirees who want tax savings and affordability without Florida's heat or insurance costs.

3. South Carolina

South Carolina does not tax Social Security and offers generous retirement-income deductions, plus a mild climate and coastal access.

The median home price is around $370,000. Healthcare is solid in Charleston, Greenville, and Columbia. The income tax tops around 6.2% but retirees benefit from large deductions. Coastal and Lowcountry living draws many transplants.

It ranks for tax-friendly retirement rules and a mild climate. It suits coastal-minded retirees and golfers.

4. Arizona

Arizona does not tax Social Security and has a low flat 2.5% income tax, paired with a dry, warm climate that appeals to many retirees.

The median home price is about $450,000. Healthcare access is strong in Phoenix and Tucson, with the Mayo Clinic operating a major Phoenix campus. Active-adult communities are abundant. Summers are hot, but winters are ideal.

It ranks for low taxes, healthcare, and dry warmth. It suits retirees who prefer desert climate and active-adult living.

5. Wyoming

Wyoming has no state income tax, very low property and sales taxes, and is often rated the most tax-friendly state overall.

The median home price is around $370,000, though resort areas like Jackson are far higher. Healthcare access can require travel in rural areas. The setting offers mountains and wide-open space.

It ranks for the lowest overall tax burden. It suits self-sufficient retirees who value low taxes and nature over urban healthcare access.

6. Delaware

Delaware has no sales tax, low property taxes, and does not tax Social Security, plus deductions on other retirement income for those over 60.

The median home price is about $390,000. Healthcare access benefits from proximity to Philadelphia and Baltimore. Coastal towns like Lewes and Rehoboth Beach are popular retirement destinations. The income tax tops around 6.6%.

It ranks for no sales tax and Mid-Atlantic convenience. It suits East Coast retirees wanting beach access near major cities.

7. Nevada

Nevada has no state income tax, no tax on retirement income, and a dry climate centered on Las Vegas and Reno.

The median home price is around $450,000. Healthcare access is concentrated in the two metros. Sales tax is on the higher side. The climate is warm and dry, with mild winters in the south.

It ranks for no income tax and entertainment access. It suits retirees drawn to dry climate and urban amenities.

8. North Carolina

North Carolina does not tax Social Security and has a flat, declining income tax of 4.25%, with varied geography from mountains to coast.

The median home price is about $370,000. Healthcare is strong in the Research Triangle and Charlotte. The climate is mild, and the Blue Ridge and coast offer recreation. The cost of living is moderate.

It ranks for balanced taxes, healthcare, and geography. It suits retirees wanting four mild seasons and a choice of mountains or coast.

9. Georgia

Georgia offers a large retirement-income exclusion (up to $65,000 per person over 65) and does not tax Social Security.

The median home price is about $340,000. Healthcare access is strong in Atlanta and Savannah. The climate is warm, and the cost of living is reasonable outside metro Atlanta. The income tax is a flat 5.39%.

It ranks for generous retirement deductions and affordability. It suits retirees wanting warm weather and Southern cost of living.

10. Pennsylvania

Pennsylvania does not tax Social Security, pensions, or 401(k) distributions for retirees, a notable advantage despite a flat 3.07% income tax on other income.

The median home price is about $280,000, among the lowest here. Healthcare access is strong near Pittsburgh and Philadelphia. The climate has four full seasons with cold winters.

It ranks for very favorable retirement-income tax treatment. It suits retirees with pensions who don't mind cold winters.

How to Choose

• Confirm how your specific income is taxed. Some states exempt Social Security but tax pensions or 401(k) withdrawals; check the rules for your income mix.
• Budget for healthcare access, not just cost. Rural states like Wyoming may require long drives to specialists; metros offer more options.
• Factor insurance and disaster risk. Florida hurricane insurance can materially change the real cost of retiring there.
• Weigh climate against your health. Heat, cold, altitude, and humidity each affect comfort and mobility differently as you age.
• Look at property taxes, not just income taxes, since some no-income-tax states recover revenue through higher property or sales taxes.

FAQ

Which state has the best tax situation for retirees?

Florida, Tennessee, Wyoming, and Nevada all have no state income tax and no tax on retirement income. Wyoming often rates as the lowest overall tax burden, while Florida adds no estate tax and a warm climate.

Does any state tax Social Security benefits?

Most states do not tax Social Security, and all states on this list exempt it. A handful of other states still tax a portion, so confirm the current rule for any state not listed here before relying on it.

Which retirement state is the most affordable?

Tennessee is the best value, with no income tax and a median home price near $340,000. Pennsylvania and Georgia are also affordable, with median home prices near $280,000 and $340,000 respectively.

What about healthcare access in retirement states?

Florida, Arizona (Mayo Clinic Phoenix), and North Carolina (Research Triangle) have excellent healthcare access. More rural states like Wyoming offer big tax savings but may require travel for specialized care.

Bottom Line

For the best overall state to retire in, Florida leads with no state income tax, no tax on retirement income, and a warm climate at a roughly $400,000 median home price. For the best value, Tennessee pairs no income tax with a low cost of living and a $340,000 median home price.

Sources

• Tax Foundation, state retirement and income tax data
• Kiplinger, state-by-state retirement tax guides
• Zillow Home Value Index by state
• U.S. News & World Report, Best States to Retire rankings
• Kaiser Family Foundation, state healthcare metrics
• AARP retirement and livability data
• Social Security Administration, state tax treatment summaries