Some of the Best States to Retire in 2023

When it comes to which state you live in, not all retirements are created equal.

Taxes, cost of living, and even climate could make certain states more beneficial to your retirement goals. Depending on where you live, the same income and investment portfolio may potentially be a luxurious surplus or barely enough to get by. Today, we're ranking some of the top states that can potentially be ideal for retirement.

Before packing your bags: we recommend speaking with a financial advisor. They can help you consider the state that makes the most sense for your specific financial situation. Different savings amounts, taxes, and other factors can change which state is best for you specifically. We built a free quiz that will match you with up to three fiduciary advisors in minutes.

The value of working with an advisor varies by person, and advisors are legally prohibited from promising returns. That said, research suggests people who work with a financial advisor feel more at ease about their finances, and could end up with about 15% more money to spend in retirement.¹

Where can I potentially pay the least in retirement taxes?

A few states stand out for their competitive tax rates, especially for retirees. Our winners for the tax category each have either no state income tax, no tax on retirement income, or a substantial discount on retirement income taxes.²

But that’s just the start: each state on our list has competitive sales, property, inheritance and estate taxes as well.

If those states don’t fit into your plan, consider our runner up list of tax-friendly states. The following highlights our winners from above along with states that have fewer tax advantages for retirees, but they all do have one big perk: no taxes on social security income.¹³

Top States Favored By Retirees:

Retiring is more than just a dollars and cents decision. Tax policy, while important, may not be all important to your specific situation. For that reason, let’s get it from the horse’s mouth: our next list provides where residents are most likely to be 65+.¹⁴

According to the Federal Interagency Forum on Aging Statistics in 2020, six states are the standout favorites among the over-65 crowd. No states have a greater density of residents over 65 than these:

States With the Highest Percentage of Population Older Than 65 Years Old

So Which State Do We View Is The Best Overall?

Let’s compare by cross-referencing each list we just went over. You may be surprised to notice that only one state made both lists.

So, which state do we rank as the best to retire in? According to tax liability and population density data, we see none better than:

The

Sunshine

State

Florida has no state income tax, no retirement income tax,⁵ and ranks second in where retirees are most likely to live.¹⁴

Take Retirement Quiz

Taking the quiz will not determine which state you should retire in, as that depends on your own personal situation. The quiz will match you with up to three financial advisors for free, which state is best for you can be discussed with the advisor you choose.

What Might Be The Best State For You?

Above all, it’s important to make a decision that 1. Makes you happy and 2. Works for your financial situation.

While several states have favorable tax policies (as we discussed), there may potentially be one or two that are particularly beneficial to you. You also should weigh cost of living, climate, and other considerations like distance to family and healthcare needs.

A fiduciary financial advisor can help you forge a financial plan that lets you focus on other, more personal considerations.

That’s why we built a free quiz to help you find vetted financial advisors that serve your area. Be sure to mention where you may want to relocate when meeting with your matches, so you can verify they serve that state as well.

We’ll give you up to three matches because, just like when choosing which state to retire, it’s always important to weigh a few options!