South Dakota, Florida, and Tennessee are frequently cited as the top, most balanced choices for affordable and happy retirement due to low taxes, no income tax, and high quality of life. South Dakota offers a low cost of living, while Florida provides high retiree satisfaction, and Tennessee combines affordability with a strong senior community.
Cheapest States to Retire In
Happiest places to retire in the U.S. often highlight good quality of life, affordability, and community, with recent lists from U.S. News & World Report pointing to Midland, MI, as #1 for 2026, alongside other top contenders like Naples, FL, Ann Arbor, MI, and Colorado cities (Boulder, Fort Collins), while Florida, Pennsylvania, Texas, and the Carolinas consistently feature strong retiree populations due to factors like weather, taxes, and amenities, though colder climates are gaining traction.
Buying or selling a home?
Here are some of the most tax-friendly states for retirees as of 2025:
No U.S. state offers a complete absence of property tax for all seniors, but many provide significant exemptions, deferrals, or credits, with states like Alaska, Florida, Hawaii, Louisiana, and Washington offering substantial relief, while others like South Dakota allow deferral until sale, and states like Colorado, Texas, and New York offer significant reductions on assessed value for qualifying seniors.
The Highest Senior State of Happiness
With a score of 68.71 out of 100, Hawaii is the state with the happiest seniors. This is no surprise, as it has the fewest seniors living alone and the highest life expectancy across the U.S.
Florida: The Sunshine State
As one of the most popular warm places to retire in the United States, Florida offers a relaxed lifestyle, tax-friendly policies, and an array of activities, from golfing and fishing to exploring vibrant arts scenes.
Hot Springs Village, Arkansas, is the best place to retire with little to no savings. More than 60 percent of the town's population is aged 65 and above, and annual expenses are estimated to be $21,114. Foley, Alabama, and The Villages, Florida, are the second and third best places to retire without savings.
Two types of senior citizen property tax exemptions exist: the standard Senior Exemption and the Long-Term Resident Exemption for seniors who have lived in their home for at least 25 years and whose home value is less than $250,000.
Nestled in Silicon Valley, California, is America's happiest city, according to WalletHub's 2025 rankings. Fremont, Calif., a suburb of San Jose, topped the list because its residents have high rates of emotional and physical well-being, and life satisfaction, in addition to higher incomes than the national average.
Safest and most affordable places to retire often feature low crime, low cost of living (especially housing), and good amenities, with the US Midwest dominating recent lists, featuring cities like Columbus, IN; Fort Wayne, IN; Des Moines, IA; and Fargo, ND, while international options like Portugal and Ecuador also rank highly for security and budget. Key factors include low crime rates (violent/property), affordable healthcare, reasonable housing costs (mortgage/rent), and manageable taxes.
Renting in retirement offers flexibility, less maintenance, and frees up cash for travel/hobbies, while homeownership provides stability, potential equity, tax breaks, and the freedom to renovate for aging in place, but comes with upkeep costs and less mobility. The best choice depends on your financial situation, health, desire for freedom vs. stability, and long-term plans, with renting often favored for lifestyle freedom and buying for long-term financial security if the home is paid off.
The best U.S. states for retirement
The top two states to retire in according to our formula are — drumroll please — Wyoming and Florida.