From sandy beaches to year-round sunshine, Florida may be at the top of your list of states to consider for retirement. But there can be better options.
Florida has no state income tax, although some states may have lower tax rates. Others may have good weather or affordable housing that can help you increase your retirement savings.
So, before you pack up and move to Florida, check out these places and see if one of them is a better home for you.
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1. Delaware
Ideally located between New York City and Washington, DC, Delaware offers a quiet lifestyle but easy access to major cities. For 95 kilometers, you can live on the beach in the south or in the hills in the northern part of the country.
Delaware is considered a tax-advantaged state for retirees because Social Security is not taxed, while pension funds and annuities are taxed at a flat rate.
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2. Arizona
If you want to live in a warmer climate, consider Arizona as an alternative to Florida. However, you will have to trade the beach for the warm desert.
Arizona, like Florida, has the most 55+ areas that cater to retirees, and 19.3% of the state’s population is over the age of 65. That puts it in the top 15 states with the highest 65 and over population.
3. Iowa
You might be surprised to see Iowa on the list, especially when you consider that the weather is not like Florida. But there can be advantages to living in the Midwest.
Iowa is ranked among the 10 states with the lowest standards of living in 2025, which can be important if you live on a fixed income.
That lower cost of living includes a home with a median sales price of $244,100 for all Iowa households in November, compared to $405,300 at the same time in Florida.
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4. Virginia
Some retirees flock to North Carolina as an alternative to Florida, but are surprised by the taxes they must pay on their retirement income.
Instead, head to northern Virginia, a tax-friendly area for retirees. The state doesn’t tax your Social Security, and it’s only a portion of the income tax from your retirement or pension accounts.
5. Pennsylvania
Pennsylvania ranks in the top 10 in percent of residents age 65+, with 20% of residents in that age group.
Another reason why senior citizens can stick around is the government’s friendliness when it comes to pension taxes. Pennsylvania does not tax Social Security, retirement account withdrawals, or pension income.
6. Missouri
Missouri has a lower cost of living index compared to Florida, reaching 88. Florida’s cost of living index is 102.
Another factor that lowers the cost of living in Missouri is housing. The median home sale price in the state was $280,500 in November, compared to $405,300 in Florida in the same month.
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7. Georgia
Check out Georgia as an option if you want to get close to Florida without crossing the state line.
Georgia, like Florida, is a tax-advantaged state for retirees with no tax on Social Security and a partial tax on pension and annuity account income.
The state also has a lower cost of living index at 91.7 compared to Florida’s 102, which can be a plus if you live on a fixed income.
8. Wyoming
Wyoming has a low cost of living, with a cost of living index of 97, which is lower than the cost of living in Florida.
The country is also very tax-advantaged for pensioners. Wyoming, like Florida, has no state income tax. It’s also tax-free, especially for retirees who have zero tax on Social Security, pensions, and income from pension accounts.
9. Michigan
Michigan may not be a good choice if you’re looking for year-round warmth, but there are some factors to consider if you want to retire there.
The state is retiree-friendly with no taxes on Social Security and partial taxes on pensions and retirement account income, and they will be fully exempt from state taxes by 2026.
It is also in the top 10 most affordable, with a cost of living index of 89.8, compared to Florida’s 102.
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10. Mississippi
Another state with beaches and warm weather besides Florida is Mississippi.
The state can serve retirees looking for lower taxes, as Mississippi does not tax Social Security, retirement account funds or pensions.
The state also had a median home price of $268,500 in November, compared to Florida’s $405,300.
11. Nebraska
Nebraska can be a good choice if you are trying to save money on a fixed income.
The state’s cost of living is up to 92.4, which is lower than 102 as the cost of living index in Florida.
One of the factors that keeps the cost of living index low in the country is the cost of living. The median home sale price in Nebraska was $308,200 in November, compared to $405,300 in Florida.
12. Nevada
Nevada is a very tax-friendly state for retirees who are worried about taxes while still earning some income.
The state has no state income tax and does not tax Social Security, retirement accounts, or pensions.
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13. West Virginia
West Virginia ranks fourth among states with the largest proportion of residents over 65; 21.48% of its population is over that age. That’s a good point if you want to live with others around your age.
It is also affordable, with one of the lowest costs of living in the country, an index of 88.6, which is lower than Florida’s 102.
14. Alabama
Alabama’s cost of living index is 87.6, making it an affordable option for some retirees.
The country is also friendly when it comes to taxing pensioners. The first $6,000 of retirement plan distributions are tax-free for those 65 and older, and the government does not tax Social Security or pensions.
15. South Carolina
South Carolina can be another option if you want to live somewhere near the water in the south without going to Florida.
The government has a tax-friendly policy for retirees with no tax on Social Security and a partial tax on retirement account withdrawals and pensions.
South Carolina housing is also less expensive, with a median sales price of $379,400 in November, compared to $405,300 in Florida.
Low profile
Florida may be a good place if you retire early and want to live in a warm place year-round, but there may be other considerations.
In addition to knowing how much you will spend each year in retirement, you also want to consider the location of your new home. Is it close to the airport? How are its medical facilities? Will you find a group of like-minded people?
As you research where to spend your next move, you should consider working with a financial advisor. They will work out the conditions – if conditions are based on your retirement savings and other investments to see if you can afford to live the life you want. Having that information may help you decide where you want to live.
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