Retirement Social Security

15 States To Avoid if You Want To Live Just on Social Security

Stretch your Social Security dollars further by avoiding these 15 states.

By Jenny Cohen

Edited by Sara Albertelli

Updated Jan. 11, 2026

As you retire early or reach your golden years, you may be considering moving somewhere new to start the next chapter of your life. But some places are better than others.

The Council for Community & Economic Research looks at the costs of health care, utilities, groceries, transportation, and housing to determine the cost of living index, the national average at 100.

Based on that data, here are some states you probably don't want to live in if your only retirement income is Social Security.

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New Hampshire

Cost of living: 109.2

Tax Social Security: No

New Hampshire has a high cost of living that's affected by some specific costs pushing it up. The state has one of the highest costs of utilities and is above the national average for housing and transportation.

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Oregon

Cost of living: 111.8

Tax Social Security: No

The two top expenses in the cost of living index work against you as a retiree in Oregon. Its transportation and housing costs are some of the most expensive in the United States.

On the other hand, the state's cost for utilities is below the nation's 100-level benchmark.

Rhode Island

Cost of living: 113.4

Tax Social Security: Yes

Housing is an important factor for retirees living on Social Security in Rhode Island. The median sale price for a home is $526,500, according to real estate website Redfin.

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Vermont

Cost of living: 113.7

Tax Social Security: Yes

In addition to the high cost of living, Vermont is among the most expensive in specific areas of the cost of living index.

It's one of the most expensive states for groceries, housing, utilities, and health, which could make it harder for you to stretch your Social Security check.

Couples with incomes below $65,000 and individuals with incomes below $50,000 are exempt from state income taxes on their Social Security benefits.

Washington

Cost of living: 113.9

Tax Social Security: No

While Washington has no state income tax and doesn't tax Social Security, its overall cost of living is high, especially for housing and groceries.

Health care costs are above average, which could be a concern for retirees relying heavily on Social Security. The state's affordability may not balance out its tax benefits for those with fixed or limited incomes.

Connecticut

Cost of living: 114.1

Tax Social Security: Yes

Your Social Security will be taxed if it exceeds a certain limit, so keep that in mind if you only live on Social Security income.

Connecticut also has one of the highest utility costs, contributing to the overall cost of living, which could cause issues on a fixed income.

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Maine

Cost of living: 114.2

Tax Social Security: No

Transportation and housing comprise the largest part of the expenses in the cost of living index developed by the Council for Community & Economic Research.

The general cost of living in Maine is higher at 114.2 with the national cost of living index at 100. Transportation and housing costs are above the national level in Maine.

New Jersey

Cost of living: 114.6

Tax Social Security: No

New Jersey taxes most types of income, but it offers some helpful breaks for retirees. Social Security benefits are not taxed at all.

If you're 62 or older or disabled, you may also be able to exclude up to $100,000 of retirement income, like pensions or IRA withdrawals. This only applies if your total income is below a certain limit. If you earn more than the limit, some of your retirement income may be taxed.

Maryland

Cost of living: 118.9

Tax Social Security: No

Maryland's cost of living is affected by high housing costs. The median sale price for a home was $435,300 in November, according to Redfin, a 0.8% increase over a year earlier.

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New York

william seward statue madison square park

Cost of living: 126.6

Tax Social Security: No

New York housing costs rank fifth in the nation, which could quickly sink your Social Security income. The state also ranks in the top 10 for most expensive groceries in the United States.

Alaska

Cost of living: 127.7

Tax Social Security: No

Alaska could be a beautiful state to retire in, especially if you like winter weather. But cost of living factors could eat at your Social Security deposit.

The state ranks highest when it comes to health care costs, which could be a major expense as you get older.

District of Columbia

Cost of living: 135.2

Tax Social Security: No

Housing can be a major factor for retirees in the nation's capital. Washington, D.C., ranks as one of the most expensive in the housing cost of living index.

The median sale price for a home in the District in November was $700,000 compared to a national sale price of $433,214, according to Redfin.

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California

The sunset along the coast in Long Beach

Cost of living: 136.7

Tax Social Security: No

California has a high cost of living, with housing being a major drag for retirees who are only living on Social Security.

Massachusetts

Cost of living: 150.8

Tax Social Security: No

Living in Massachusetts will take extra cash from your Social Security check for housing, with the state ranking second overall for housing costs. The state is also in the top five for its utility costs.

A long, cold winter will require more heat, and increasing health care costs may strain your retirement dollars as you age.

Hawaii

kailua islands from lanikai pillboxes trail

Cost of living: 179.7

Tax Social Security: No

Hawaii doesn't tax your Social Security, but that may be little solace if you're living in the state with the highest cost of living.

In addition to the general cost of living, Hawaii has the highest housing costs. The median sale price for homes in Hawaii was $741,600 in November, compared to the national median of $433,214.

Bottom line

If you have the ability and desire to move, understanding the actual cost of living in your desired location should be a starting point.

If you plan to live only on Social Security income, you will need to make a realistic budget and stick to it. Most likely, you'll need to find ways to make extra money in retirement.

You could also wait to receive your Social Security benefits until age 70 to ensure you have the highest monthly income for the rest of your life.

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