The Best States to Retire in 2026: Taxes; Weather; and Healthcare
Choosing where to retire is one of the biggest decisions you'll make, blending dreams of sunny days, affordable living, and reliable healthcare with the realities of taxes and costs. In 2026, states l...
Choosing where to retire is one of the biggest decisions you'll make, blending dreams of sunny days, affordable living, and reliable healthcare with the realities of taxes and costs. In 2026, states like Wyoming, Florida, and South Dakota top the lists for retirees, thanks to low taxes, favorable weather in some spots, and solid healthcare access—but the best fit depends on your priorities.[1][2][3]
Why Taxes, Weather, and Healthcare Matter Most for Retirement
Taxes can eat into your 401(k), IRA, or Social Security checks, while harsh weather might limit outdoor activities, and healthcare quality becomes critical as Medicare kicks in. We're focusing on these factors using 2026 data to help you narrow down options across the U.S.[1][2][5]
Tax-Friendly States: Keep More of Your Retirement Savings
No state income tax means more money in your pocket—states like Wyoming, Florida, Texas, and South Dakota shine here. Wyoming leads with no personal income, estate, or inheritance taxes, plus low property and sales taxes, making it a top pick for affordability.[2][3][5]
Florida follows closely, offering no income tax on retirement income, no estate or inheritance taxes, and strong Older Americans Act funding for senior services like transportation and nutrition.[3] As of 2026, only eight states tax Social Security: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont—most with deductions or credits to ease the burden.[5]
- Very Tax-Friendly States: Wyoming, South Dakota, Florida, Texas, Nevada—no income tax and low overall burdens.[5]
- Tax-Friendly Options: Tennessee, New Hampshire (no income tax on earned income, high average Social Security payouts).[2][5]
- Avoid High-Tax States: New Jersey, New York, Massachusetts—high costs and taxes drag them down despite strong Social Security incomes in some cases.[2]
Pro Tip: Use the IRS withholding estimator at irs.gov to model your federal taxes alongside state rules, and check state revenue departments for 2026 retiree exemptions.[5]
Weather That Supports an Active Retirement
Sunny, mild climates top retiree wish lists, but trade-offs exist. Florida and Arizona deliver year-round warmth (average highs 70-85°F), ideal for golfing or beach walks without shoveling snow.[1] Wyoming and South Dakota offer four distinct seasons with low humidity, appealing if you prefer crisp falls over constant heat—but winters dip below freezing.[2][3]
New England states like Vermont and New Hampshire provide beautiful autumns and manageable snow, ranking high overall despite cooler temps.[2][4] Hawaii scores low on affordability but excels in eternal spring-like weather (70-80°F year-round).[1]
| State | Avg. Annual Temp (°F) | Best For |
|---|---|---|
| Florida | 73 | Beaches, no winter |
| Arizona | 70 | Dry heat, outdoors |
| Wyoming | 44 | Seasons, low humidity |
| Hawaii | 75 | Tropical paradise |
Actionable Advice: Review NOAA climate data at weather.gov for your top states, factoring in hurricane risks in Florida or wildfires in the West.
Healthcare Access: Medicare and Beyond
Medicare covers basics, but quality doctors, low costs, and senior health outcomes matter. Wyoming boasts strong health indicators for older adults and low homemaker service costs, helping you stay independent.[2][3] Florida gets high Older Americans Act funding per senior, supporting Medicaid supplements and home care.[3]
South Dakota ranks high overall, with good affordability offsetting any weather challenges.[1] Struggling states like Mississippi and West Virginia lag in healthcare and quality of life, despite affordability.[1][3] New Jersey and Massachusetts face high costs despite access.[2]
- Check Medicare plans via medicare.gov/plan-compare—enroll during Open Enrollment (Oct 15-Dec 7) for 2026 coverage.
- Look for states with high doctor-to-senior ratios; Wyoming trades quantity for quality outcomes.[2]
Top 10 Best States to Retire in 2026
Synthesizing 2026 rankings, here's a consensus top 10 balancing taxes, weather, healthcare, and affordability. Wyoming surges to #1 across multiple studies for tax perks and health metrics.[1][2][3]
- Wyoming: No income tax, top affordability, solid senior health—cooler weather a trade-off.[2][3]
- Florida: No taxes on retirement, warm weather, strong senior funding.[1][3]
- South Dakota: Overall #1 in one ranking, tax-friendly, affordable.[1]
- New Hampshire: No income tax, high Social Security averages, mild weather.[2]
- Georgia: Affordable, decent weather, rising in rankings.[1]
- Michigan: Low costs, four seasons, good healthcare access.[1]
- Texas: No income tax, diverse climates, growing retiree hubs.[1]
- Tennessee: Tax-friendly, mild winters, cultural amenities.[1]
- Pennsylvania: Affordable healthcare, variable weather.[1]
- Arizona: Sunny, dry climate, retiree-friendly taxes.[1]
Rankings vary—World Population Review puts South Dakota first, while CareScout and others favor Wyoming—but these states consistently excel.[1][2][3]
State Comparison: Taxes, Weather, Healthcare at a Glance
| State | Tax Score | Weather Appeal | Healthcare Rank | Overall 2026 Rank |
|---|---|---|---|---|
| Wyoming | Excellent (No income tax) | Seasonal | Strong | 1[2][3] |
| Florida | Excellent | Hot/Sunny | Good | 2[3] |
| South Dakota | Very Good | Cold Winters | Average | 1[1] |
| New Jersey | Poor | Mild | Poor | Worst[2] |
| New York | Poor | Cold | Average | 45[3] |
Practical Tips for Choosing Your Retirement State
- Calculate your tax savings: Use SmartAsset's retirement tax calculator for 2026 scenarios.[5]
- Visit in off-seasons: Test winters in Wyoming or summers in Florida.
- Factor Medicare: States with low supplemental plan costs save thousands annually.
- Consider cost of living: Wyoming's low homemaker services help aging in place.[3]
- Explore USA.gov's Eldercare Locator for local resources: eldercare.acl.gov.
FAQ
Which state has no tax on Social Security in 2026?
Most states don't tax it—only eight do (e.g., Colorado, Utah). Wyoming, Florida, and Texas fully exempt it.[5]
Is Florida still the best for retirement weather?
Yes for sun-seekers, with no state income tax boosting its appeal, though hurricanes are a risk.[1][3]
How does Wyoming compare for healthcare?
Strong outcomes for seniors despite fewer doctors; low service costs help.[2][3]
What's the worst state to retire in 2026?
New Jersey ranks last in one study due to taxes and health outcomes; avoid high-cost Northeast states.[2]
Should I prioritize taxes or weather?
Taxes save money long-term; weather affects daily life—balance with healthcare needs.[5]
Are Western states overtaking the Sun Belt?
Yes, Wyoming, South Dakota lead for affordability; Sun Belt loses shine from crowds and costs.[3][4]
Next Steps to Plan Your 2026 Retirement Move
Start by listing your must-haves: low taxes? Warm weather? Top healthcare? Run numbers on bls.gov for cost-of-living indexes, consult a fee-only advisor via napfa.org, and visit top states. Your ideal spot keeps you financially secure, healthy, and happy—research now to retire smarter.
Sources & References
- Best States to Retire 2026 - World Population Review — worldpopulationreview.com
- Wyoming ranked best state to retire, New Jersey worst in new study - Fox News — foxnews.com
- The 10 Best and 10 Worst States for Retirement in 2026 - WealthManagement.com — wealthmanagement.com
- #1 State To Retire In - 2026 - YouTube — youtube.com
- Best States to Retire for Taxes (2026) - Tax-Friendly States for Retirees - SmartAsset — smartasset.com
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