Retirees Are Leaving California in Droves (And Going to These 5 States Instead)

California has long been a desirable place to retire, with year-round sunshine, beaches, mountains, and pleasant climate. However, for retirees living on just Social Security, pensions, investment income, or a combination of the three, the state's price tag is getting harder to justify.

Its biggest advantage is part of its problem. You get a lot of lifestyle for your money, but that lifestyle is increasingly unaffordable. The median California home sold for $777,566 in June 2026, according to Redfin. That's a formidable price tag for someone trying to stretch retirement savings.

Taxes add another layer. California's top individual income tax rate reaches 13.3%, one of the highest rates in the country. While the state doesn't tax Social Security benefits, other retirement income, including pensions, IRA withdrawals, and taxable investment income, may be subject to state income tax.

For someone still working or drawing substantial income from retirement accounts, moving to a state with a lower tax burden is a no-brainer. And plenty of older Californians are doing exactly that.

In 2025, California recorded a net loss of 12,963 adults aged 65 and older, according to moving data firm HireAHelper. More than 34,000 retirement-age residents left for another state, while just over 21,000 moved in. Perhaps unsurprisingly, the Golden State was the primary source of retirement-age newcomers to Arizona in 2025, sending 3,716 retirees there (more than any other state).

But Arizona isn't the only place California retirees are choosing.

Arizona

As the most popular destination for California retirees, Arizona's appeal is pretty obvious. It offers warm weather and a lower cost of living in many communities. If you don't want to abandon family in the West completely, it's an easy geographic and cultural transition.

From a practical standpoint, Arizona's individual income tax rate is substantially lower than California's.

Of course, Arizona has its own retirement challenges, including extreme summer heat and rising housing and insurance costs. Yet for California retirees looking for a less expensive version of the Southwest, places like Phoenix and Mesa remain the first stop.

Texas

HireAHelper's data shows Texas attracted a net gain of 5,156 retirement-age residents in 2025, second only to South Carolina. California was the state's number one source of retirement-age newcomers (2,874 in 2025).

The biggest financial draw is simple: Texas has no state individual income tax and offers more housing for the money. Still, the state isn't uniformly cheap, and popular cities such as Austin have their own affordability problems. All the same, retirees have a much wider range of communities to choose from, from more expensive metropolitan areas to smaller cities with lower housing costs.

Health services are another selling point. Texas is home to major medical hubs, including the Texas Medical Center in Houston, which gives older adults access to extensive health care infrastructure.

Nevada

Nevada drew 2,526 retirement-age Californians in 2025, making it the third-most popular destination.

Nevada is geographically close to California, has a familiar Western landscape, and offers plenty of warm-weather communities. On the other hand, tax differences are significant. Nevada has no individual state income tax, which gives retirees another way to stretch their fixed incomes.

Housing is another factor. Nevada isn't inexpensive everywhere (and Las Vegas has seen its own housing costs rise), but retirees may still find more affordable options than in many California communities. The tradeoff is climate. Southern Nevada's summers are brutally hot, much like Arizona's.

Washington

Washington was the fourth-most popular destination for Californians leaving the state, attracting 2,037 retirement-age movers in 2025.

The state offers a Pacific Northwest lifestyle with mountains, water, forests, and milder summers than much of California. Those who love the West Coast but don't want to keep paying California prices have the option to stay within easy traveling distance from family while improving their financial outlook.

Washington also has no individual state income tax, but it's far from universally inexpensive. Housing costs around Seattle and other popular areas remain high. In the final analysis, Washington offers something Arizona and Nevada don't: a cooler climate and four distinct seasons.

Florida

Florida rounded out the top five, with 1,948 outbound moves from California in 2025. The Sunshine State remains one of the country's most recognizable retirement destinations, and its biggest tax advantage is hard to overlook: no individual income tax. Retirees generally don't pay tax on pensions, IRA withdrawals, or investment income.

Florida also has an enormous retirement infrastructure, from age-restricted communities to specialized health care providers and services geared toward older adults. And unlike Arizona and Nevada, Florida offers beaches and coastal living.

While places like Fort Lauderdale and Naples remain extremely popular, the state is no longer an automatic one-way trip for retirees. High insurance costs due to hurricane exposure, rising home prices, and other expenses are prompting some residents to reconsider the state after their initial move.

Bottom line

California isn't bleeding retirees because the state became an undesirable place to live overnight. It's losing them because their retirement savings are stretched thin. The state's high costs are impossible to ignore on a fixed income.

As a result, California has been losing more seniors than most other retirement havens. Some Californians are prioritizing lower taxes in Arizona, Nevada, or Texas. Others are choosing Washington for its climate and Western lifestyle or Florida for its established retirement communities.

California may still offer one of the country's most attractive lifestyles. Increasingly, though, retirees are deciding they don't need to pay California prices to get one.

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