Best States To Retire In 2024 (2024)

FAQs

Best States To Retire In 2024? ›

A: The best state to retire in 2024 is sunny Florida, according to WalletHub, thanks to its relative affordability and high quality of life for seniors. That's followed by Colorado, Virginia, and Delaware.

Based on its high marks for affordability, access to high quality health care, overall well-being and other categories, Delaware, known as the "First State," earned the top spot in Bankrate's annual ranking of the best states to retire in the U.S. In 2023, the state ranked No.

Some states do not tax Social Security or income, which could appeal to retirees. Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming stand out for their tax-friendly policies and other amenities that retirees may enjoy.

These are the 10 states that tax Social Security benefits in 2024: Colorado, Connecticut, Kansas, Minnesota, Montana, Nebraska, New Mexico, Rhode Island, Utah and Vermont. One thing to keep in mind is that the taxes you face will differ from one state to the next.

Overall, the study ranked Massachusetts as the best place to live in the U.S. thanks in part to the state's education and health, (where it ranked first in the country), and their quality of life, (where it ranked sixth). Other states that rounded out the top five were Florida, New Jersey, Utah and New Hampshire.

Key takeaways. Delaware (1), West Virginia (2), Georgia (3), South Carolina (4) and Missouri (5) are the top five states for retirement in 2024.

What state is Social Security not taxed in? ›

Now that Social Security income is tax-exempt in Missouri and Nebraska, only 10 states will still tax benefits: Colorado, Connecticut, Kansas, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont and West Virginia.

States were evaluated across five categories, including affordability (40%), overall well-being (25%), quality and cost of health care (20%), weather (10%) and crime (5%). The winner? Delaware—one of the smallest states in the U.S.—was named the best state to retire in 2024.

Social Security tax FAQs

Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.

According to the updated MoneyGeek analysis, the most “tax friendly” state overall was Wyoming, where the median family owes about 3% of its income in taxes. Meanwhile, 12 states earned either a D or F grade for tax burdens. For some of those states, like Oregon, high personal income tax rates are to blame.

Eight of them – Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming – don't tax wages, salaries, dividends, interest or any sort of income. New Hampshire, the ninth state, has no state income tax on wages, salaries, retirement account withdrawals or pension payments.

The cheapest places to retire abroad include Panama, the Philippines, Portugal, Malaysia, Mexico, Thailand and Vietnam. Before making the move, consider expenses such as travel costs, taxes and visas, which can vary significantly from one country to another.