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Florida’s reign as the top retirement destination is facing a challenge. While the Sunshine State remains popular, rising costs, crowded communities, and the threat of extreme weather are driving retirees to explore other appealing locations. From coastlines to mountains, and bustling cities to quiet towns, here are sixteen states attracting retirees:
- Delaware: Boasting beautiful beaches like Rehoboth Beach, Delaware also offers a tax-friendly environment for retirees. With no sales tax and no taxes on Social Security benefits, it’s a financially attractive option.
- Arizona: Like Florida, Arizona offers a warm climate, but with a drier heat. While some pension and 401(k) income is taxed, Social Security benefits are not, and the state has a low, flat income tax rate.
- Colorado: Colorado’s appeal lies in its vibrant cities and stunning Rocky Mountain scenery. While the state’s tax incentives for retirees are less generous, its natural beauty and active lifestyle are major draws.
- Wisconsin: Retirees who don’t mind colder weather might consider Wisconsin. Cities like Milwaukee offer access to Lake Michigan and recreational activities, along with no state tax on Social Security benefits.
- Georgia: Offering a balance of warm summers, mild winters, and a beautiful coastline, Georgia is attracting retirees with its appealing climate and generous income exclusions for retirees.
- West Virginia: Nature lovers are finding a haven in West Virginia, with its stunning mountains and valleys. The state also offers attractive tax breaks for retirees, including phasing out taxes on Social Security and exempting some pensions.
- Pennsylvania: Pennsylvania boasts four distinct seasons, excellent access to healthcare, and a favorable tax environment. Traditional retirement income is not taxed, and other income is taxed at a low flat rate.
- New Hampshire: With its short coastline, beautiful mountains, and no taxes on Social Security, pension, or 401(k) income, New Hampshire offers a compelling option for retirees seeking both coastal and mountain living.
- Wyoming: Home to breathtaking national parks, including Yellowstone, Wyoming also offers a haven from state income taxes, making it attractive for retirees seeking natural beauty and tax advantages.
- Minnesota: While Minnesota’s tax situation is less advantageous for retirees, its access to winter sports and renowned healthcare facilities, including the Mayo Clinic, makes it a strong contender.
- South Carolina: With hot summers and mild winters, South Carolina is attracting retirees seeking a pleasant climate and a more relaxed pace of life. Social Security benefits are not taxed, and pensions and 401(k) income are partially taxable.
- Nevada: Nevada’s dry heat, vibrant cities like Las Vegas, and lack of state income tax are attracting retirees seeking entertainment and a tax-friendly environment.
- South Dakota: South Dakota offers a combination of four distinct seasons and a highly favorable tax environment, with no state income tax, inheritance tax, or taxes on retirement income.
- Missouri: With affordable housing and a recent elimination of Social Security taxes, Missouri offers retirees a cost-effective option, but its location in “Tornado Alley” is a factor to consider.
- Mississippi: Mississippi boasts one of the lowest costs of living in the U.S. and a favorable tax situation for retirees, with exempt retirement income and a decreasing income tax rate.
- Iowa: Iowa offers affordable living, particularly in its capital city, Des Moines. Recent tax breaks for retirees, including exempting retirement income and eliminating inheritance tax, add to its appeal.
The retirement landscape is changing. With a variety of appealing options across the country, retirees are no longer limited to Florida. Consider these sixteen states as you plan your golden years.