15 Places Retirees Are Picking Over Florida (#4 Is a Clever Option)

From sandy beaches to year-round sunshine, Florida may be at the top of your list of states you're considering for retirement. But there could be better options.

Florida doesn't have a state income tax, although some states may have more affordable tax rates. Others could have nice weather or more affordable housing that could help you maximize your retirement savings.

So, before you pack up and move to Florida, take a look at these states and see if one of them is a better retirement home for you.

Ideally situated between New York City and Washington, D.C., Delaware offers a calm lifestyle but easy access to big cities. In its 95 miles, you can live at the beach in the south or in the rolling hills of the northern part of the state.

Delaware is considered a tax-friendly state for retirees because Social Security is not taxed, while retirement funds and pensions are taxed at only partial rates.

If you want to live somewhere warm, think about Arizona as an alternative to Florida. You'll have to trade the beach for a warm desert, though.

Arizona, like Florida, has plenty of 55+ communities that cater to retirees, and 19.3% of the state's population is over the age of 65. That puts it in the top 15 states with the highest 65-and-up populations.

You may be surprised to see Iowa on the list, especially considering the weather is not the same as in Florida. But there could be some advantages to living in a Midwest state.

Iowa ranked among the 10 lowest-cost-of-living states in 2025, which could be important if you're living on a fixed income.

That lower cost of living includes housing with a median sale price of $244,100 for all homes in Iowa in November, compared to $405,300 for the same time in Florida.

Some retirees are flocking to North Carolina as an alternative to Florida, only to be surprised by the taxes they have to pay on their retirement income.

Instead, head a little farther north to Virginia, which is more tax-friendly for retirees. The state doesn't tax your Social Security and only partially taxes income from retirement accounts or your pension.

Pennsylvania ranks in the top 10 states by percentage of residents aged 65+, with 20% of residents in that age group.

One reason older residents may stick around is the state's friendliness when it comes to retirement taxes. Pennsylvania doesn't tax Social Security, retirement account withdrawals, or income from pensions.

Missouri has a lower cost of living index compared to Florida, coming at 88. Florida's cost-of-living index is 102.

One factor that lowers the cost of living in Missouri is housing. The median sale price for a home in the state was $280,500 in November, compared to Florida's $405,300 for the same month.

Check out Georgia as an option if you want to get close to Florida without crossing the state line.

Georgia, like Florida, is a tax-friendly state for retirees with no taxes on Social Security and only partial taxes on retirement account income and pensions.

The state also has a lower cost of living index at 91.7 compared to Florida's 102, which can be a motivator if you're living on a fixed income.

Wyoming has a low cost of living, with a cost of living index of 97, which is less than the cost of living in Florida.

The state is also very tax-friendly for retirees. Wyoming, like Florida, doesn't have a state income tax. It's also tax-friendly, specifically for retirees with zero taxes on Social Security, pensions, and income from retirement accounts.

Michigan may not be a good option if you're seeking year-round warmth, but there are other factors to consider if you want to retire there.

The state is friendly to retirees with no tax on Social Security and only partial tax on pensions and retirement account income, and will be fully exempt from the state tax by 2026.

It also ranks in the top 10 most affordable states, with a cost-of-living index of 89.8, compared to Florida's 102.

Another state that has beaches and warm weather without being Florida is Mississippi.

The state can work for retirees who are looking for low taxes, as Mississippi doesn't tax Social Security, retirement account income, or pensions.

The state also had a median sale price of $268,500 for homes in November, compared to Florida's $405,300.

Nebraska can be a great choice if you're trying to save money on a fixed income.

The state's cost of living index comes in at 92.4, which is lower than 102 as a cost of living index in Florida.

One of the factors that keeps the cost of living index low in the state is housing costs. The median sale price for homes in Nebraska was $308,200 in November, compared to $405,300 in Florida.

Nevada is a very tax-friendly state for retirees who are worried about taxes while on a fixed income.

The state has no state income tax and doesn't tax Social Security, retirement accounts, or pensions.

West Virginia ranks fourth among states with the largest percentage of the population over the age of 65; 21.48% of its population is over that age. That's a good point if you want to live around others close to your age.

It's also affordable, with one of the lowest cost of living in the country, an index of 88.6, which is below Florida's 102.

The cost of living index in Alabama is 87.6, making it an affordable choice for some retirees.

The state is also somewhat friendly when it comes to taxing retirees. The first $6,000 of distributions from retirement plans are exempt from taxes for those 65 and older, and the state doesn't tax Social Security or pensions.

South Carolina could be another option if you want to live somewhere near the water in the south without going all the way to Florida.

The state has a friendly tax policy for retirees with no tax on Social Security and only a partial tax on retirement account withdrawals and pensions.

Housing in South Carolina is also more affordable, with a median sale price of $379,400 in November, compared to $405,300 in Florida.

Florida may be a good destination if you retire early and want to live in a climate that is warm year-round, but there may be other considerations.

In addition to knowing how much you'll spend annually as a retiree, you also want to consider the location of your new home. Is it close to airports? How are its medical facilities? Will you find a community of like-minded people?

As you research where you will spend your next act, you should consider working with a financial advisor. They will run what-if scenarios based on your current retirement savings and other investments to see if you can afford the lifestyle you want. Having that information may help you decide where you want to live.