Financial Advisors Say These 9 Underrated States Are the Best-Kept Secrets for Retirement in 2026

Many retirees choose to move in retirement. While the new adventure can be exciting, the destination matters in a big way for your retirement plan. Of course, most people already know about the allure of Florida and Arizona as retirement destinations. But other states fly under the radar.

We talked to financial advisors to find several underrated states that might make sense for your retirement years.

North Carolina

North Carolina is quickly becoming a more popular option among retirees. And with good reason, according to Alex Langan, financial advisor at Langan Financial Group LLC.

"The climate is mild by East Coast standards, and healthcare infrastructure around Charlotte and the Research Triangle is strong," says Langan.

Notably, the Tar Heel State doesn't tax Social Security benefits, which might help stretch your budget a bit further.

Tennessee

"Nashville gets most of the attention and has priced accordingly," says Langan, "But Tennessee is a large state and a significant portion of it remains affordable."

With no state income tax, it's possible to make your nest egg last longer in the Volunteer State. Beyond being relatively easy on the budget, Tennessee offers beautiful mountain views and four relatively mild seasons.

Nevada

For retirees seeking a retirement west of the Rockies, Nevada offers "outdoor activities for those who like to hike or take day excursions to see wildlife," says Chris Cohan, ChFC, RMA, and CEO at RJP Estate Planning in Scottsdale, Arizona.

Nevada could be a good fit due to "no state income taxes and relatively lower cost of living," says Cohan.

Louisiana

The Bayou State boasts a lively culture and a never-ending selection of delicious eateries. Lots of retirees can find plenty to like about living in Louisiana.

On a practical note, Louisiana doesn't impose state income tax on Social Security benefits, which could help some retirees stretch their fixed income further.

"States that offer favorable tax treatment on retirement income can make a meaningful difference over time and help reduce financial stress," says Jerry L Smith, CEP, CLTC, and president of JL Smith Associates in Canton, Ohio.

Alabama

Alabama might be a great spot to call home sweet home in retirement.

"Many seniors prefer areas with milder winters that eliminate the challenges associated with snow, ice, and freezing temperatures," says Smith, "A warmer climate can make it easier to stay active, travel, and enjoy outdoor activities year-round."

Alabama certainly delivers on a milder climate. And with rolling hills and white sand beaches, it offers some variety to new residents looking for a spot to put down roots.

Mississippi

Mississippi consistently ranks among the most affordable states to live in.

"Finding a location with a lower cost of living that is significantly lower than the national average can help retirees maintain their lifestyle without putting unnecessary strain on their finances," says Smith.

According to BestPlaces, a single person can comfortably live in the state for $2,467 per month. That's 48.2% less expensive than the national average. For some retirees, this significantly lower cost of living could eliminate some financial stress from their golden years.

South Carolina

South Carolina offers a beautiful coastline and affordable cities, like Myrtle Beach and Greenville. It also doesn't have an inheritance or estate tax, which could help retirees pass down wealth to the next generation.

"States that do not impose inheritance or estate taxes can help individuals preserve more of their assets for future generations, providing greater confidence that their hard-earned wealth will be passed on according to their wishes," says Smith.

Pennsylvania

Retirees hoping to see four true seasons each year, Pennsylvania offers a relatively affordable and tax-friendly option.

"Pennsylvania is one of the most tax-friendly states in the country for retirees and it flies almost entirely under the radar outside the region," says Langan.

Without income tax on Social Security income or pension income for residents age 60 and older, Pennsylvania retirees may be able to stretch their dollars a bit further.

Delaware

"Delaware works best for retirees who want to stay in or near the Mid-Atlantic and reduce their tax footprint without relocating to a warmer climate," says Langan.

In addition to some tax exemptions on up to $12,500 in pension income, Delaware doesn't charge a state sales tax.

With a cost of living on par with the national average, living in Delaware could make sense for retirees looking for a more affordable mid-Atlantic destination.

Bottom line

Picking the right place to call home for your golden years is a major decision. Choosing an affordable spot with the amenities you crave can free up your retirement budget to make your nest egg last.

If you're interested in one of these hidden gems, consider making a trip to the area you'd move to for at least a week. Make sure you can picture yourself there for the long haul before jumping into a move.