The Best States to Retire in 2022

A comfortable retirement is a lifelong common goal to people of almost any age, profession, and from every state.

But that isn’t to say retirement has equal value from state to state. Taxes, cost of living, and even climate give certain states an upper hand when it comes to retirement; the same income and investments can have much different values in different parts of the country. Today, we’re ranking the top states that can be ideal for retirement.

Best States for Minimizing Taxes in Retirement

If shrinking your tax liability is high on your list of priorities, a few states stand out. The winners on our list below either have no state income tax, no tax on retirement income, or a substantial discount on the taxes levied on retirement income. But that’s just the start.

While several additional states have no state income tax, the states that made our list also have favorable sales, property, inheritance, and estate taxes.

Alaska

Florida

Georgia

Mississippi

Nevada

South Dakota

Wyoming

If those seven locations aren’t ideal, consider the next tier of tax-friendly states. Tax benefits aren’t quite as high as those above, but they do stand out in one specific category: no taxes on social security income.

That’s not to say they don’t make up for it in other areas, however. Washington State, for example, has no state income tax, but does have a 6.5% state sales tax. Still, it’s always beneficial to avoid income tax when possible.

Alabama

Arkansas

Colorado

Delaware

Idaho

Illinois

Kentucky

Louisiana

Michigan

New Hampshire

Oklahoma

Pennsylvania

South Carolina

Tennessee

Texas

Virginia

Washington

West Virginia

Top States Favored by Retirees

While Alaska may have favorable tax policies, lounging in Anchorage may not be your idea of a relaxing retirement. To uncover where retirees actually want to live, let’s dive into another set of numbers.

According to the Federal Interagency Forum on Aging Statistics, six states are the standout favorites among the over-65 crowd.2 No other states surpass their density of residents over the age of 65:

Maine (20.6%)

Florida (20.5%)

West Virginia (19.9%)

Vermont (19.4%)

Montana (18.7%)

Delaware (18.7%)

Best Overall State for Retiring

Now, let’s compare. By cross-referencing my list of “Best States for Minimizing Taxes in Retirement” with my list of Top States Favored by Retirees, we find that only one state makes both lists.

The Sunshine State offers favorable taxes, pleasant climate, and reasonable cost of living.

For more information on Real Estate in the Sunshine State contact William Henderson at 786-346-5611