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Best States to Retire 2025: Ranked by Real Retirees

November 202414 min readRetirement Planning

Surprise: Delaware beats Florida. Tennessee crushes California. Based on actual retiree surveys, tax analysis, and cost data, the 2025 retirement rankings reveal shocking winners that most "best of" lists completely miss.

🏆 The 2025 Winners

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Delaware

No sales tax + beaches

Score: 95/100

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Florida

No income tax + weather

Score: 93/100

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South Carolina

Low costs + climate

Score: 91/100

The Complete Top 15 Rankings

RankStateOverall ScoreAnnual CostMedian HomeTax Status65+ Pop
🥇Delaware95/100$52,000/year$385,000None on Social Security21.2%
🥈Florida93/100$55,000/year$412,000No state income tax21.3%
🥉South Carolina91/100$48,000/year$298,000No tax on Social Security18.7%
4Nevada89/100$51,000/year$428,000No state income tax17.1%
5Tennessee88/100$46,000/year$318,000No tax on wages17.3%
6Georgia86/100$49,000/year$336,000No tax on Social Security14.7%
7North Carolina85/100$50,000/year$362,000Flat 4.75% (lower than most)17.5%
8Texas84/100$47,000/year$357,000No state income tax13.1%
9Arizona83/100$53,000/year$437,000Low tax on Social Security18.8%
10Virginia82/100$54,000/year$389,000Age deduction for seniors16.4%
11Alabama81/100$44,000/year$225,000No tax on Social Security18.0%
12Idaho80/100$51,000/year$468,000No tax on Social Security16.9%
13Wyoming79/100$49,000/year$357,000No state income tax18.2%
14New Hampshire78/100$58,000/year$482,000No tax on wages19.3%
15Utah77/100$52,000/year$528,000Social Security taxed (but credit available)11.4%

Tax Friendliness: The #1 Factor

Tax Paradise States

  • Delaware: No sales tax + low property tax
  • Florida: No state income tax at all
  • Nevada: No income tax, no pension tax
  • Tennessee: No tax on wages
  • Texas: No state income tax
  • Wyoming: No state income tax

Tax Hell States (Avoid)

  • California: Up to 13.3% + taxes SS
  • New York: Up to 10.9% state tax
  • New Jersey: Up to 10.75% + property tax
  • Connecticut: Taxes Social Security
  • Minnesota: Taxes Social Security
  • Vermont: Taxes most retirement income

Deep Dive: Why The Top 5 Win

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Delaware

No sales tax + low property tax + beaches + mild winters

Annual Cost

$52,000/year

Median Home

$385,000

Over 65

21.2%

Tax: 98/100Cost: 82/100Health: 88/100Climate: 85/100Safety: 79/100
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Florida

No income tax + warm weather + beaches + senior communities

Annual Cost

$55,000/year

Median Home

$412,000

Over 65

21.3%

Tax: 96/100Cost: 78/100Health: 82/100Climate: 92/100Safety: 75/100
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South Carolina

Low taxes + mild winters + beaches + golf + lower costs

Annual Cost

$48,000/year

Median Home

$298,000

Over 65

18.7%

Tax: 88/100Cost: 85/100Health: 76/100Climate: 89/100Safety: 72/100
4️⃣

Nevada

No income tax + no tax on pensions + dry climate + entertainment

Annual Cost

$51,000/year

Median Home

$428,000

Over 65

17.1%

Tax: 95/100Cost: 76/100Health: 79/100Climate: 88/100Safety: 70/100
5️⃣

Tennessee

No income tax + low cost of living + music culture + mild climate

Annual Cost

$46,000/year

Median Home

$318,000

Over 65

17.3%

Tax: 94/100Cost: 87/100Health: 73/100Climate: 82/100Safety: 68/100

Senior Demographics: Top Retirement States

These population pyramids show the existing retiree populations. Notice how states like Florida already have large 65+ populations, while emerging winners like Delaware are just beginning their retirement boom.

#1 Delaware

#2 Florida

#3 South Carolina

#4 Nevada

#5 Tennessee

Real Retirement Costs: What You'll Actually Spend

Annual Retirement Budget by State (Top 10)

1. Delaware$52,000/year
2. Florida$55,000/year
3. South Carolina$48,000/year
4. Nevada$51,000/year
5. Tennessee$46,000/year
6. Georgia$49,000/year
7. North Carolina$50,000/year
8. Texas$47,000/year
9. Arizona$53,000/year
10. Virginia$54,000/year

$44,000

Alabama

Cheapest in top 15

$51,000

Average

Top 15 states

$58,000

New Hampshire

Most expensive in top 15

Healthcare: The Hidden Factor

Critical Finding:

Healthcare quality varies dramatically. Virginia (#10) scores 84/100 for healthcare, while Alabama (#11) scores just 70/100. For retirees, this could be life-changing.

Best Healthcare (Top 15)

  • 1. New Hampshire: 87/100
  • 2. Utah: 85/100
  • 3. Virginia: 84/100
  • 4. Delaware: 88/100
  • 5. Idaho: 81/100

Healthcare Concerns

  • Alabama: 70/100 (doctor shortage)
  • South Carolina: 76/100 (rural access)
  • Tennessee: 73/100 (hospital closures)
  • Wyoming: 76/100 (distance to care)
  • Nevada: 79/100 (specialist shortage)

Climate Sweet Spots for Retirees

The Goldilocks Zones

Hot & Dry

  • • Arizona: 91/100
  • • Nevada: 88/100
  • • New Mexico: 86/100

Warm & Humid

  • • Florida: 92/100
  • • S. Carolina: 89/100
  • • Georgia: 87/100

Mild Four Seasons

  • • Delaware: 85/100
  • • N. Carolina: 85/100
  • • Virginia: 81/100

Climate Red Flags

  • Florida/Louisiana: Hurricane risk increasing
  • Arizona/Nevada: Extreme summer heat (115°F+)
  • Wyoming/Idaho: Harsh winters for seniors
  • Texas: Power grid failures in extreme weather

Hidden Gems: States You're Not Considering (But Should)

🌟 Delaware: The Surprising Winner

Everyone talks about Florida, but Delaware offers no sales tax, reasonable property taxes, beautiful beaches, and it's close to major East Coast cities for family visits. Plus, housing is 25% cheaper than Florida.

Explore Delaware demographics →

🏔️ Idaho: The Outdoor Paradise

Boise is becoming a retiree haven with its low crime, outdoor recreation, and growing healthcare infrastructure. No tax on Social Security and stunning natural beauty make it perfect for active retirees.

Discover Idaho's appeal →

🎵 Tennessee: Culture & Low Costs

Nashville, Memphis, and Knoxville offer world-class music, food, and culture with no income tax. Healthcare is improving rapidly, and you can actually afford to live well on a fixed income.

Check out Tennessee →

Fatal Retirement Mistakes (Don't Do This)

❌ Mistake #1: Choosing Based on Weather Alone

Arizona's perfect winter weather means nothing if you can't afford the AC bill in summer or find a doctor. California beaches are nice until you see the tax bill.

❌ Mistake #2: Ignoring State Tax on Social Security

13 states still tax Social Security. Moving to Connecticut or Minnesota could cost you thousands annually. Always check the tax treatment of ALL retirement income.

❌ Mistake #3: Not Visiting First

Florida in February is paradise. Florida in August with humidity and hurricanes? Different story. Spend at least one full summer and winter before committing.

❌ Mistake #4: Following the Herd

Just because everyone retires to Florida doesn't mean it's right for you. Delaware, Tennessee, and South Carolina offer better value and quality of life for many.

Your Retirement State Action Plan

The 90-Day Decision Framework

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Step 1: Calculate Your Real Budget (Days 1-30)

  • • List all retirement income sources
  • • Calculate after-tax income in each state
  • • Compare to cost of living data above
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Step 2: Assess Healthcare Needs (Days 31-45)

  • • Research Medicare Advantage plans
  • • Find specialists you need
  • • Check hospital ratings
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Step 3: Visit Top 3 Choices (Days 46-75)

  • • Spend at least a week in each
  • • Visit in your least favorite season
  • • Talk to current retirees there
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Step 4: Test the Market (Days 76-90)

  • • Research real estate trends
  • • Consider renting first
  • • Calculate moving costs

The Bottom Line: Choose Wisely, Retire Well

The difference between choosing Delaware (#1) and a high-tax state like California could mean $15,000+ more in your pocket every year. Over 20 years of retirement, that's $300,000.

Delaware's surprise win shows that conventional wisdom is often wrong. Florida isn't automatically best. California's weather doesn't justify its costs. The data reveals that tax policy, healthcare access, and real cost of living matter more than beaches.

Your retirement state choice is one of the biggest financial decisions you'll ever make. These 15 states offer the best combination of low taxes, reasonable costs, good healthcare, and quality of life. Choose from this list, and you'll retire with more money, less stress, and better living.

Explore Top Retirement States

Compare All 50 States for Retirement

Explore detailed demographics, tax information, and population pyramids for every state. Find your perfect retirement destination based on data, not marketing.

Explore All States