Don’t Move to These States When You Retire

Alaska offers real tax advantages, including no state income or sales tax, but it comes with trade-offs that matter more in retirement. It's remote and cold, with long, dark winters, and it has one of the smallest shares of older residents in the country, so building a social circle can take effort. Because most goods are shipped in from far away, the cost of living runs high. If you love the outdoors and solitude, it can be a great fit; if you want easy access to family, services, and a warm climate, it's a hard sell.

Illinois is a mixed bag for retirees. On the plus side, it doesn't tax retirement income like Social Security or pension and 401(k) withdrawals. The catch is some of the highest property taxes in the country, plus high sales and gas taxes, so your overall tax burden can still be steep. Winters are long and cold, and outside the Chicago area, options for amenities thin out. Chicago itself offers a lot culturally, though cost and big-city trade-offs come with it.

New Jersey's biggest drawback for retirees is cost. Housing and overall living expenses are among the highest in the country, and property taxes are notably steep. It's densely populated and can feel crowded, and proximity to New York and Philadelphia drives prices up further. There's plenty to like about the state, but a fixed budget stretches less far here than in much of the country.

Nevada has no state income tax, which draws plenty of retirees to the Las Vegas and Reno areas. But housing costs have climbed, and much of the state is hot, dry desert, with summer heat that can be tough to manage. Healthcare access is more limited than in many states, particularly outside the larger metros, which is worth factoring in as medical needs grow with age.

Maryland combines a high cost of living with a tax structure that isn't especially friendly to retirees, including taxes on some retirement income. Housing is pricey, especially near Washington, D.C., and the D.C.-corridor traffic is among the worst in the country. The state does have strong healthcare options, particularly around its major medical centers, which is a genuine plus.

Connecticut has one of the highest life expectancies in the country, so there's something to be said for settling there. The challenge is cost: it's among the most expensive states to retire in, with high housing and utility costs, and it isn't especially tax-friendly toward retirement income. If the budget works, the quality of life is high.

New York has a lot going for retirees, including an excellent healthcare system and a high quality of life. The obstacle is cost. New York City is one of the most expensive places in the country to live, and the cost of elder care is high statewide, even upstate where living costs are otherwise lower. If you can afford it, the access to culture and care is hard to beat; if you're on a fixed budget, it's a stretch.

New Mexico's low cost of living is a real draw, and the landscape and climate appeal to a lot of retirees. A couple of things to weigh: the state taxes some retirement income, though it has expanded exemptions in recent years, and much of the state sits at high elevation, which can take some adjustment if you're sensitive to altitude or have heart or lung conditions.

Mississippi is the most affordable state to retire in and is tax-friendly, exempting most retirement income. The trade-offs are real, though: the state ranks near the bottom nationally on several health measures, including life expectancy, and healthcare access can be limited, especially in rural areas. Summers are hot and very humid, and the Gulf Coast carries hurricane risk. The low costs are a genuine draw, but the healthcare picture is worth researching carefully.

Nebraska has its charms, but a few things give retirees pause. Property taxes are among the higher in the country, and parts of the state get strong winds and harsh winters that are tougher to deal with as you age. It's also fairly rural, so access to specialized healthcare and amenities can mean a drive.

Delaware is a popular retirement choice for good reason: no sales tax, no tax on Social Security, and lots of retirement communities near the beaches. It's also within easy reach of Philadelphia, New York, and Washington, D.C. The downsides are more practical: traffic and congestion can be heavy, and public transit is limited, so you'll likely be driving. Overall living costs have risen, so it's worth budgeting carefully.

Tennessee is genuinely attractive on paper: no state income tax, a low cost of living, and the scenery of the Great Smoky Mountains. A couple of practical considerations: the region has a long, high-pollen allergy season that can be rough if you're sensitive, and summers are hot and humid. For many retirees the tax and cost advantages outweigh those, but they're worth knowing going in.

Louisiana's culture, food, and low cost of living, including for in-home care, are real draws. The harder parts: health insurance and healthcare costs can be high, the Gulf location brings hurricane and flooding risk, and summers are hot and humid. If you're drawn to the culture and can plan around the climate risk, it has a lot to offer.

Oklahoma is affordable and tax-friendly, which can make a fixed income go further, especially if you're moving from a pricier state. The main trade-off is healthcare: the state ranks low on healthcare access and outcomes, which matters more as medical needs increase. It's worth checking what's available in the specific area you're considering.

Every state has trade-offs, and the right choice depends on your priorities and budget. Michigan, for instance, is affordable but has cold winters, while Hawaii has beautiful weather and a relaxed pace but is the most expensive state to retire in. California offers tremendous natural beauty but high costs and, in places, air-quality issues. A few other states have features that may give retirees pause:

• Massachusetts
• Kentucky
• Texas
• Oregon
• Washington
• Vermont