Top 5 Best States to Retire in 2026: What They Don’t Tell You
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| Best States to Retire in 2026 |
A new 2026 retirement ranking highlighted five states as the best places to retire. The list, referenced by Moneywise, draws from broader state-level data sets that evaluate retirement friendliness using measurable economic and quality-of-life indicators.
But before unpacking the winners, it’s important to clarify: where does the ranking come from, and what exactly is being measured?
Read more: Can You Retire Before 67? How Early Social Security Cuts Your Monthly Check
Who produced the rankings — and how?
The list referenced by Moneywise compiles data from national research organizations and public datasets that typically include:
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U.S. Census Bureau population and migration data
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Bureau of Economic Analysis income trends
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State tax policy comparisons
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Medicare and healthcare access metrics
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Cost-of-living indexes
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Crime statistics
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Housing affordability data
Most retirement rankings apply weighted scoring across categories such as:
Affordability (housing prices, property taxes, overall cost of living)
Tax Friendliness (income tax, Social Security taxation, pension taxation)
Healthcare Quality & Access (hospital systems, provider density, Medicare outcomes)
Quality of Life (climate, safety, recreational access)
Economic Stability (state fiscal health, job markets that support part-time retirees)
States are scored across these categories and ranked based on composite totals.
That methodology means the rankings measure structural advantages — not individual satisfaction.
With that context, here’s what the Top 5 states offer — and where the tradeoffs lie.
1. Florida: Tax Simplicity Meets Climate Risk
Florida’s high placement is driven largely by tax policy. The state has:
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No state income tax
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No tax on Social Security benefits
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No state inheritance tax
Healthcare access scores strongly due to a dense provider network serving retirees. However, affordability metrics can be misleading. While taxes are low, home insurance premiums and HOA costs have surged, especially in coastal regions.
Florida ranks high on financial structure — but retirees must calculate total cost, not just tax savings.
2. North Carolina: A Balanced Performer Across Categories
North Carolina scores well because it avoids extremes. Housing costs remain moderate compared to many Northeastern states. The tax structure is flatter and more predictable than many higher-tax regions.
The state also performs well in healthcare access within metro areas and offers varied geography — mountains to coastline.
However, retirees moving to rural counties may face limited specialty healthcare access. Rankings often average state-wide data, masking regional disparities.
3. Tennessee: Strong Tax Metrics, Fast Growth Pressure
Tennessee performs strongly in tax friendliness because it does not tax wage income and eliminated its former tax on investment income.
This makes retirement account withdrawals more efficient compared to many states.
But rankings may not fully reflect local housing inflation. Fast-growing areas have seen property values climb, which can erode affordability gains.
Tennessee ranks well on paper, but retirees should analyze housing market micro-trends before deciding.
4. Pennsylvania: Tax Advantages Offset Climate Tradeoffs
Pennsylvania frequently ranks well because it does not tax retirement income, including Social Security and pensions.
Housing affordability remains competitive compared to many coastal states, and major metro areas offer high-quality healthcare systems.
However, property taxes vary significantly by county, and winters can be a major lifestyle factor. Rankings reward financial structure, but they do not score “climate preference.”
Read more:
- Retirement Age Changes in 2026: Claiming Social Security at 62, 67, or 70?
- Which U.S. States Will See the Biggest Boost in Social Security Payments in 2026?
5. Georgia: Moderate Taxes with Geographic Flexibility
Georgia’s retirement appeal comes from:
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Retirement income exclusions up to certain limits
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Generally moderate cost of living
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Strong healthcare infrastructure in metro areas
It benefits from offering both urban and coastal retirement options. However, rising housing costs in high-demand areas can shift the math quickly.
What the Ranking Measures — and What It Doesn’t
The 2026 list is grounded in quantitative data: taxes, cost indexes, healthcare metrics, and migration patterns. That gives it credibility.
But here’s what these rankings cannot measure:
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Personal healthcare needs
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Family proximity
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Climate tolerance
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Insurance volatility
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Local community culture
A state can score high overall yet be a poor fit for someone with specific medical needs or lifestyle priorities.
The Bottom Line
The 2026 Top 5 retirement states rank well because of structural advantages — especially tax friendliness and moderate cost of living.
But the smartest retirees use rankings as a starting point, not a final answer.
Before relocating, consider:
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A full annual cost breakdown including insurance
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Healthcare provider proximity
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Property tax variability by county
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Climate resilience
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Long-term sustainability of growth trends
Rankings tell you where to look. They don’t tell you where you belong.
