15 Places Retirees Are Picking Over Florida (#4 Is a Clever Option)

Florida has long been the default retirement destination, and it's easy to see why: warm weather, no state income tax, and miles of coastline. But defaulting to the Sunshine State could mean overlooking places that offer even more for your money.

Some states rival Florida's tax advantages while adding more affordable housing, lower costs of living, or weather that suits you just as well. Before you start packing, these alternatives are worth a serious look to see if one of them could do more to help you maximize your senior benefits.

Delaware

Ideally situated between New York City and Washington, D.C., Delaware offers a calm lifestyle but easy access to big cities. In its 95 miles, you can live at the beach in the south or in the rolling hills of the northern part of the state.

Delaware does not tax Social Security benefits, and residents age 60 and older can exclude up to $12,500 of eligible pension and retirement income from state income taxes.

Arizona

If you want to live somewhere warm, think about Arizona as an alternative to Florida. You'll have to trade the beach for a warm desert, though.

Arizona, like Florida, has plenty of 55+ communities that cater to retirees, and around 20.6% of the state's population is over the age of 65. 

Iowa

You may be surprised to see Iowa on the list, especially considering the weather is not the same as in Florida. But there could be some advantages to living in a Midwest state.

Iowa ranked among the 10 lowest-cost-of-living states in 2025, which could be important if you're living on a fixed income.

That lower cost of living includes housing with a median sale price of $255,934 for all homes in Iowa, as of August 2026, compared to $383,403 for the same time in Florida.

Virginia

Head to Virginia, which offers some tax breaks for retirees. Virginia doesn't tax Social Security benefits, although most other federally taxable retirement income is subject to state income tax. Qualifying residents age 65 and older may be eligible for an age-based deduction of up to $12,000, depending on their income.

Pennsylvania

Pennsylvania ranks in the top 10 states by percentage of residents aged 65+, with 21.4% of residents in that age group.

One reason older residents may stick around is the state's friendliness when it comes to retirement taxes. Pennsylvania doesn't tax Social Security benefits, and qualifying distributions from eligible retirement plans are generally exempt from state income tax once the state's retirement requirements are met.

Missouri

Missouri has a lower cost of living compared to Florida, coming in at 14.4% below the national average. 

One factor that lowers the cost of living in Missouri is housing. The median sale price for a home in the state was $298,656 in August, compared to Florida's $383,403 for the same month.

Georgia

Check out Georgia as an option if you want to get close to Florida without crossing the state line.

Georgia doesn't tax Social Security benefits, and residents age 65 and older can exclude up to $65,000 of qualifying retirement income from state income taxes.

The state also has a lower cost of living by 5.5% compared to the national average. Florida's is 3.1% higher, according to BestPlaces.net, which can be a motivator if you're living on a fixed income.

Wyoming

Wyoming has a low cost of living, with a cost of living 2.5% below the national average, which is less than the cost of living in Florida.

The state is also very tax-friendly for retirees. Wyoming, like Florida, doesn't have a state income tax. Because Wyoming doesn't have an individual state income tax, retirees don't pay state income tax on Social Security benefits, pensions, or retirement account distributions.

Michigan

Michigan may not be a good option if you're seeking year-round warmth, but there are other factors to consider if you want to retire there.

Michigan doesn't tax Social Security benefits, and its retirement income deduction phase-in was fully implemented for the 2026 tax year, allowing more retirees to deduct qualifying pension and retirement income, subject to applicable state rules and limits.

Its cost of living is also 8.5% lower than the national average. 

Mississippi

Another state that has beaches and warm weather without being Florida is Mississippi.

The state can work for retirees who are looking for low taxes, as Mississippi doesn't tax Social Security benefits or qualifying retirement income and pensions, although early distributions may be taxable.

The state also had a median sale price of $277,743 for homes, compared to Florida's $383,403.

Nebraska

Nebraska can be a great choice if you're trying to save money on bills. 

The state's cost of living is 12.2% lower than the national average, which is also lower than Florida's. 

One of the factors that keeps the cost of living index low in the state is housing costs. The median sale price for homes in Nebraska was $321,661 in August. 

Nevada

Nevada is a very tax-friendly state for retirees who are worried about taxes while on a fixed income.

The state has no state income tax and doesn't tax Social Security, retirement accounts, or pensions.

West Virginia

About 21.9% of West Virginia's population is age 65 or older, making older adults a sizable share of the state's population. That's a good point if you want to live around others close to your age.

It's also affordable, with one of the lowest costs of living in the country at 20.6% below the national average.

Alabama

The cost of living in Alabama is 15.9% below the national average, making it an affordable choice for some retirees.

The state is also somewhat friendly when it comes to taxing retirees. Alabama doesn't tax Social Security benefits or qualifying pension income, and residents age 65 and older can exempt up to $6,000 of otherwise taxable retirement income.

South Carolina

South Carolina could be another option if you want to live somewhere near the water in the South without going all the way to Florida.

South Carolina doesn't tax Social Security benefits, and residents age 65 and older can deduct up to $10,000 of qualifying retirement income, with additional age-based deductions potentially available.

Housing in South Carolina is also more affordable, with a median sale price of $348,549.

Bottom line

Florida may be a good destination if you want to live in a climate that is warm year-round, but there may be other considerations.

In addition to knowing how much you'll spend annually as a retiree, you also want to consider the location of your new home. Is it close to airports? How are its medical facilities? Will you find a community of like-minded people? Will you be able to eliminate some money stress? 

As you research where you will spend your next act, you should consider working with a financial advisor. They will run what-if scenarios based on your current retirement savings and other investments to see if you can afford the lifestyle you want. Having that information may help you decide where you want to live.

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