Best states to retire in 2024

Almost two-thirds of non-retired U.S. adults either feel that their retirement plan is not on track or they’re unsure of their retirement plan, according to the Federal Reserve. Considering the moving parts of retirement – where to live, having sufficient income, and maintaining good health, to name a few – uncertainty about retirement is no surprise.

However, creating a retirement plan is fundamental to a comfortable retirement. Understanding the best states to retire is a significant piece of the puzzle. Read on to get a better idea of where you’d like to retire based on your envisioned standard of living, the surrounding community, outdoor opportunities and more.

What are the best states to retire in 2024?

We’ve compiled a list of the best states to retire in 2024 based on several criteria, such as tax policies and benefits, health care access and quality, cost of living, weather, quality of life and more.

When considering the aforementioned factors, here are the best states for retirees. While each has its strengths and weaknesses, they serve the needs of individuals and couples in retirement.

1. Delaware
2. Wyoming
3. South Dakota
4. Idaho
5. Hawaii
6. Utah
7. Oregon
8. Alabama
9. Washington
10. New Mexico

1. Delaware

Delaware is a popular destination for retirees, with around a fifth of its population being 65 years or older. Nicknamed the Diamond State, this East Coast jewel offers a host of benefits for retirees such as affordable housing, quality health care, and favorable tax policies.

With its gorgeous 25-mile coastline and beautiful beaches, Delaware attracts many retirees looking for a peaceful environment that’s also not too far from lively major cities such as New York City and Philadelphia.

• 65+ population: 212,180
• Income tax or retirement income tax: Yes
• Health-related establishments per 10,000 residents: 32

2. Wyoming

Wyoming is a wonder of the West filled with stunning natural landscapes and rich historic sites to explore. The Cowboy State is home to beloved attractions such as Yellowstone National Park and the iconic Old Faithful geyser.

This western gem is also one of the tax-friendliest states with a relatively low cost of living, making it a popular choice for retirees.

• 65+ population: 107,988
• Income tax or retirement income tax: No
• Health-related establishments per 10,000 residents: 35

3. South Dakota

South Dakota is a midwestern marvel filled with benefits for retirees, such as premium health care services, outdoor attractions, an inviting community, and lower than national average cost of living.

• 65+ population: 165,909
• Income tax or retirement income tax: No
• Health-related establishments per 10,000 residents: 28

4. Idaho

Known for more than just potatoes, the Gem State boasts its natural beauty with an abundance of mountains, lakes, and forests. There are also countless museums, galleries, theaters and wineries to visit.

Not to mention, Idaho has significant tax benefits and discounts for retirees looking to make their retirement savings stretch.

• 65+ population: 329,530
• Income tax or retirement income tax: Yes
• Health-related establishments per 10,000 residents: 30

5. Hawaii

While Hawaii is one of the most expensive states to live in, you don’t necessarily have to say goodbye to your dreams of retiring in the Aloha State. Since social security and public pensions aren’t taxed, retirees can use those savings (along with careful budgeting) to enjoy their retirement in Hawaii.

Hawaii also offers quality health care, a welcoming community for seniors, warm weather year-round, and countless breathtaking islands to explore.

• 65+ population: 294,654
• Income tax or retirement income tax: Yes
• Health-related establishments per 10,000 residents: 26

6. Utah

Although Utah taxes all retirement incomes, retirees may still be drawn to its top-notch health care system, booming economy, overwhelming natural beauty, and diverse scenery. From quiet rural areas to lively city atmospheres, Utah is a unique state with much to offer retirees.

• 65+ population: 403,699
• Income tax or retirement income tax: Yes
• Health-related establishments per 10,000 residents: 27

7. Oregon

With over 17% of its population being 65 years or older, retirees may be drawn to Oregon’s beautiful natural landscapes, countless outdoor activities, and vibrant cultural scene. Additionally, being a moderately tax-friendly state, some seniors may be able to receive tax benefits and incentives.

• 65+ population: 816,714
• Income tax or retirement income tax: Yes
• Health-related establishments per 10,000 residents: 34

8. Alabama

Alabama’s warm weather, welcoming Southern atmosphere, and affordable cost of living may be enticing for retirees who are looking to enjoy their retirement while on a budget. It’s also considered to be tax-friendly for retirees.

However, with comparatively fewer health care establishments and a lack of cultural diversity, this Southern state may not be the right fit for some retirees.

• 65+ population: 913,013
• Income tax or retirement income tax: Yes
• Health-related establishments per 10,000 residents: 21

9. Washington

The state of Washington has the best of both worlds. Retirees can enjoy a plethora of outdoor activities alongside stunning scenic views, while also enjoying a variety of indoor entertainment options such as museums and theaters.

Washington is also very tax-friendly, having both low property taxes and no state income tax. With some of the best medical facilities in the country, many retirees may be drawn to this wonderful West Coast state.

• 65+ population: 1,309,142
• Income tax or retirement income tax: No
• Health-related establishments per 10,000 residents: 28

10. New Mexico

New Mexico is a Southwestern state with jaw-dropping natural scenery, fun outdoor activities, moderate weather, and a culturally rich environment. Retirees who choose to settle down in The Land of Enchantment may enjoy affordable living, access to quality health care, and close-knit communities.

• 65+ population: 404,784
• Income tax or retirement income tax: Yes
• Health-related establishments per 10,000 residents: 25

10 Best and Worst States To Retire In 2024

Along with ranking of the top 10 states to retire in 2024, we’ve also compiled a list of the 10 worst states to retire in as listed in the table below.

5 worst states for retirement

While the best state to retire will ultimately depend on a retiree’s unique circumstances and interests, some states may not be the most ideal based on factors such as access to health care, cost of living, and tax policies. Let’s briefly consider the five worst states for retirement.

1. New York

The Empire State is well-loved for its vibrant city life, famous landmarks, and diverse people. However, New York’s extremely high cost of living along with its crowded population may make it a less-than-ideal location for some retirees. 

• 65+ population: 3,564,596
• Income tax or retirement income tax: Yes
• Health-related establishments per 10,000 residents: 30

2. New Hampshire

New Hampshire is a picturesque state filled with natural beauty, rich history, and attractive tax benefits. Some drawbacks to retiring in the Granite State, though, include a high cost of living, harsh winters, and limited public transportation.

• 65+ population: 281,983
• Income tax or retirement income tax: No
• Health-related establishments per 10,000 residents: 27

3. Texas

Since Texas generally has an affordable cost of living, several large cities, and quality health care systems, retirees from all different walks of life may find a home in the Lone Star State. However, some potential disadvantages to retiring in Texas include harsh summer temperatures, higher rates of crime in major cities, and natural disasters.

• 65+ population: 4,037,085
• Income tax or retirement income tax: No
• Health-related establishments per 10,000 residents: 24

4. Oklahoma

Oklahoma offers retirees an affordable cost of living, scenic outdoor attractions, welcoming communities, and a lively entertainment hub. However, some possible drawbacks include lack of access to quality health care in rural areas, limited public transportation, and extreme weather.

• 65+ population: 661,996
• Income tax or retirement income tax: Yes
• Health-related establishments per 10,000 residents: 27

5. Connecticut

Some retirees may be drawn to Connecticut’s natural beauty, lively entertainment scene, and lower crime rates. Others, though, may find its high cost of living, expensive home prices, and cold weather to be deal breakers for a retirement destination.

• 65+ population: 663,712
• Income tax or retirement income tax: Yes
• Health-related establishments per 10,000 residents: 32

How does each U.S. state rank for retirement?

Here’s a comprehensive look at how each U.S. state ranks for retirement based on population, tax policy, and climate.

The bottom line

Your golden years can be one of the most rewarding, exciting, and relaxing times of your life. Living in a state that features affordability and pleasant weather can make all the difference for your quality of life. That said, financial and life circumstances might drive you to prioritize some needs over others, such as the cost of living, taxes, or medical expenses.

If you have decided which state you’d like to live in, housing is the next critical step. Apply for a home loan with Rocket Mortgage^? today.

Methodology: Finding the best states to retire

Rocket Mortgage collected and analyzed the most recent data on ten key statewide metrics to give us insight into the top states best for retiring. We analyzed all 50 states and Washington D.C. The metrics used in this study include presence of state income/retirement income tax, cost of living composite index, calculated effective real estate tax rate, average annual home insurance cost, median rent, health-related establishments per 10,000 residents, Commonwealth Fund Healthcare System Performance Scorecard, 5-year growth in 65+ population per 10,000 residents, 10-year growth in 65+ population per 10,000 residents, and average annual temperature (F). These metrics were chosen based on public data availability and topical relevancy. Metrics from the U.S. Census are based on 2022 ACS 1-year estimates.

Median yearly real estate taxes are an average of owner-occupied units with and without a mortgage. Effective property tax rate was calculated by dividing median yearly real estate taxes by median home value. Per 10,000 residents’ calculations were based on 2022 state population and per 10,000 residents. Each data category was normalized and transformed into a range of points for scoring and comparison. Weights were then applied to each metric depending on their individual importance in the study. The weighted scores for each metric were summed to create the overall Best State To Retire Score for each state. The final scores are sorted to produce the final rankings.

Other metrics considered without weight: