Retirement Social Security

15 States Where Social Security Goes the Furthest in 2026

Low taxes and affordable living make these states ideal for retirees

By Summer Nevins

Edited by Lisa Dammeyer

Updated Dec. 24, 2025

If you're relying on Social Security to cover a meaningful portion of your retirement income, location isn't just a lifestyle choice. It's a financial strategy. In 2026, the gap between high-cost and low-cost states is expected to widen, meaning your benefit could cover far more in one state than another.

It's important now more than ever to maximize your senior benefits, as choosing your location wisely can make or break how you fiscally live out your golden years.

These are the states where Social Security dollars go the furthest in 2026 and the factors that make them especially retirement-friendly.

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Delaware

Delaware is often considered a low-tax haven, and stands out for retirees because it combines relatively high average Social Security benefits with moderate living costs compared with many East Coast states.

The state does not tax Social Security benefits and also offers a generous retirement income exclusion for other pension income, helping retirees keep more of their money. Housing and daily essentials tend to be cheaper than in nearby big cities, stretching benefits further.

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Florida

Florida remains a top choice for retirees, and not just because of its coastal views and warm climate. There is no tax on Social Security benefits and no state income tax at all.

While housing costs vary by region, many areas, particularly inland cities, still offer below-average living expenses. Groceries, utilities, and health care remain manageable compared with coastal states, helping Social Security income stretch further without additional tax burdens.

Arizona

Arizona is often considered a place where Social Security benefits stretch far, thanks to low living costs and no state tax on Social Security benefits.

Retirees benefit from lower housing, grocery, and utility costs compared with national averages, making essential expenses easier to cover with a fixed income. This affordability attracts many retirees seeking lower costs of living.

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Utah

Utah's lower cost of living and absence of Social Security state taxes for many retirees help benefits go further. Though housing costs have risen, overall expenses, including utilities and health care, remain competitive with national averages, allowing Social Security income to cover a larger share of basic costs. These factors make Utah attractive for retirees prioritizing financial sustainability.

South Carolina

South Carolina's affordable lifestyle, particularly lower housing and everyday costs, helps Social Security income stretch further than in many other states. It also does not tax Social Security benefits, reducing overall tax burdens for retirees. Combined with a mild climate and retiree-friendly amenities, the state allows many fixed-income households to cover essential expenses more comfortably.

Alabama

Alabama ranks well in many retirement affordability analyses because its cost of living is significantly below the national average, particularly for housing and groceries. The state doesn't tax Social Security benefits, and overall day-to-day costs remain among the lowest in the country. For retirees on fixed incomes, these factors allow benefits to stretch further.

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Nevada

Nevada's retiree appeal comes from no state tax on Social Security benefits and no state income tax at all, which can help retirees keep more of their fixed income. While housing costs vary by region, utilities and groceries align with or fall below national averages, helping benefits cover more needs than in high-cost coastal states.

Tennessee

Tennessee does not tax Social Security benefits and also has no state income tax, making it financially attractive for retirees. Combined with moderate living costs, especially outside major urban areas, Social Security income can cover a larger share of essential expenses, including health care and housing. These factors make it a financially savvy retirement choice.

Michigan

Michigan offers affordable living costs, particularly for groceries, utilities, and many everyday essentials, which help Social Security dollars go further. While taxes and housing vary by region, the overall cost environment makes everyday retirement expenses more manageable relative to many other states with higher taxes or housing costs.

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Idaho

Idaho's cost of living, especially utilities and groceries, tends to stay around or slightly below national averages. Combined with no state tax on Social Security benefits, this allows fixed incomes to stretch more compared to expensive coastal states. Retirees find that typical monthly benefits cover a larger portion of essential needs here.

North Carolina

North Carolina provides a mix of reasonable living costs and no state tax on Social Security benefits. Housing is often more affordable than in many neighboring Mid-Atlantic states, and everyday essentials like groceries and utilities align with or are below national averages, giving retiree income more purchasing power.

Arkansas

Arkansas offers one of the lowest costs of living in the country, with affordable housing, groceries, and utilities. The state does not tax Social Security benefits, allowing retirees to keep more of their monthly income. Combined with inexpensive health care and property taxes that are lower than the national average, Arkansas enables Social Security checks to cover a large share of essential expenses.

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Wyoming

Wyoming's combination of low taxes, including no tax on Social Security benefits and no state income tax, helps retirees maximize fixed income. Although housing can be pricier in popular mountain towns, everyday essentials, groceries, utilities, and transportation tend to fall below national averages. Its overall low tax burden and manageable living costs make Social Security income go significantly further.

West Virginia

West Virginia's cost of living remains far below the national average, driven by affordable housing, low transportation costs, and modest health care prices. Social Security benefits are being phased out of taxation, helping to keep monthly income intact. For retirees seeking a scenic, slower-paced lifestyle where everyday costs stay manageable, West Virginia offers strong value and allows benefits to stretch comfortably.

Mississippi

Mississippi consistently ranks among the lowest-cost states in the country, with especially affordable housing, groceries, and utilities. The state does not tax Social Security benefits, allowing retirees to keep more of their monthly income. Combined with low property taxes, these factors help Social Security checks cover a larger share of everyday expenses.

Bottom line

Where you live can dramatically change how far Social Security goes. When planning for retirement, look at states with lower housing costs, affordable essentials, and little to no taxation on Social Security benefits. This allows you to stretch fixed incomes further and reduce financial pressure in retirement.

Remember, local costs matter as much as state averages. Even in retirement-friendly states, choosing smaller cities or rural areas can amplify savings.

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