10 States Retirees Are Picking Over Arizona (#3 Has an Underrated Perk)

Arizona has long been a top choice for retirees, thanks to its warm climate, tax-friendly policies, and abundance of senior communities. But in recent years, more retirees are exploring other destinations that offer similar perks. These sometimes include states with lower costs, better healthcare access, or fewer crowds.

Making smart money moves for seniors means looking beyond tradition and considering states that provide great quality of life without the hefty price tag. These ten destinations are giving Arizona some real competition.

If you're looking for a retirement-friendly state that won't eat into your savings, Texas is a solid pick. Social Security income? Not taxed. Retirement account withdrawals? Also not taxed. Pensions? You guessed it, no state tax. That alone makes it a good move for seniors looking to stretch their dollars.

Plus, Texas boasts some of the lowest home prices in the country. The median sits at $337,800, according to Redfin, which is well below the national average of $425,000. With its warm weather, no state income tax, and plenty of space to spread out, it's no surprise more retirees are skipping Arizona and settling in the Lone Star State.

Nevada isn't just for tourists and casino lovers, it's also a great place for retirees looking to save money on taxes. The state has no income tax, which means your Social Security, retirement withdrawals, and pension income remain mostly untouched by Uncle Sam.

Nevada also offers a dry, sunny climate and plenty of entertainment, from world-class shows to outdoor adventures. And while home prices aren't the cheapest, they're still more affordable than many parts of Arizona, making Nevada a smart alternative for budget-conscious retirees.

If top-notch healthcare is a priority in retirement, Ohio delivers. The state is home to world-class hospitals, including the Cleveland Clinic, ranked among the best in the nation. On top of that, Social Security income isn't taxed, and there are deductions available for other retirement income.

Ohio also has plenty to keep retirees busy — museums, theaters, cultural events, and beautiful outdoor spaces like Hocking Hills. And with a low cost of living and affordable home prices, it's an appealing alternative to pricier retirement hotspots.

Smart Drivers, Smarter Savings

Compare car insurance rates in Ohio

See if you qualify for a lower rate in less than 2 minutes

Check Rates

By clicking the button above, I understand and agree that this site uses site visit recording technology (provided by Trusted Form, Jornaya, and Microsoft Clarity) Privacy Policy

If you love experiencing all four seasons but don't want to break the bank, Pennsylvania is worth a look. You can enjoy gorgeous foliage in the fall, mild summers, and cozy, snowy winters. And with charming historic sites and bustling cities like Philadelphia and Pittsburgh, there's no shortage of things to see and do.

The state has a low Cost of Living Index of 95.1, according to the World Population Review, making it more affordable than both the national and Arizona averages. Additionally, there's no tax on Social Security income, which helps retirees keep their expenses to a minimum.

Florida has been a retirement hotspot for decades, and it's easy to see why. No state income tax means Social Security, pensions, and retirement withdrawals go further, making it a smart choice for seniors.

With 21.3% of the population aged 65 and older, according to the Population Reference Bureau (PRB), the Sunshine State is built for retirees. Think senior-friendly communities, top-notch healthcare, and year-round golfing. Add in beautiful beaches and no snow to shovel, and it's no wonder so many retirees are choosing Florida over Arizona.

If you're looking for low costs and wide-open spaces, South Dakota checks both boxes. With the World Population Review putting the Cost of Living Index at just 92.2, it's one of the most affordable states in the country, and much cheaper than Arizona.

No state income tax means your Social Security, pension, and retirement withdrawals stay in your pocket. The entire state has fewer than 1 million people, according to the U.S. Census Bureau, so if you like peace, quiet, and a slower pace of life, South Dakota might be the perfect retirement escape.

Do you want Arizona's warm weather without the price tag? Alabama is a great alternative. With a Cost of Living Index of 88, according to the World Population Review, it's the fifth-most affordable state in the U.S.

Social Security income isn't taxed, and property taxes are among the lowest in the country. There's also plenty to do, from beaches along the Gulf Coast to scenic mountain towns to rich history in cities like Montgomery and Birmingham.

Mississippi offers low costs and Southern charm. It's one of the most affordable states to retire in, and like many other states on this list, retirees won't pay any additional taxes on Social Security income.

The pace of life is relaxed, but there's still plenty to do. Explore the Blues Trail in Clarksdale, visit the Natchez historic homes, or relax on the Gulf Coast beaches.

Virginia may be a little pricier than some other states on this list, but it's still more affordable than Arizona, and many retirees find it's worth the extra cost. In addition to no Social Security income taxes, there are deductions available for other retirement income.

The state offers four beautiful seasons, mountain and coastal scenery, and top-tier healthcare. History buffs can explore Colonial Williamsburg, nature lovers can hike the Blue Ridge Mountains, and beachgoers can relax in Virginia Beach — the region truly has it all.

With 18.7% of the population over 65, South Carolina is clearly a popular spot for retirees. The state offers low taxes on retirement income, Social Security isn't taxed, and there are exemptions for retirement account withdrawals.

On top of that, the cost of living is affordable, making it an easy place to stretch your dollars.

While Arizona has long been a go-to for retirees, there are plenty of other states offering similar benefits at a more affordable cost. From tax-friendly policies to beautiful weather and active communities, places like Texas, Florida, and South Carolina are all great options for seniors looking to make the most of their retirement.

As you evaluate your options, don't forget that some states, like South Dakota, also offer exceptionally low population densities, providing a quieter, more peaceful lifestyle. Whatever your retirement plan looks like, there's a perfect spot for you to enjoy your golden years without breaking the bank.