Many retirees decide to relocate once they leave the workforce. Whether it’s to explore areas they’ve always dreamed of, take advantage of tax breaks, or just to be closer to family and friends, this decision can have huge implications for the later years of your life. Fortunately, it’s easier than ever to identify top destinations for retirees in 2027.

Key Takeaways

• Not all states are equal when it comes to retirement, and several have established themselves as great destinations for recent retirees.
• Choosing a state to retire in will depend on a variety of factors, including access to services, recreation and financial benefits.
• Our top choices for retirees include Wyoming, North Carolina, South Dakota, Colorado and Pennsylvania.

What to Consider When Choosing Where to Retire

When choosing which state is best suited for your retirement, there are many variables to consider. Your individual situation is unique, and things like healthcare, financial and tax considerations, and lifestyle options will all play important roles in selecting your ideal retirement destination.

Some of the biggest deciding factors will include:

Financial and Tax Benefits

Many states offer tax incentives for retirees, including low or even nonexistent personal income taxes, and many others have specific requirements for everything from withdrawals from retirement accounts to Social Security benefits. Understanding how your retirement locale handles the types of taxes most likely to impact retirees is a key part of choosing a new home.

Income taxes aren’t the only piece of the puzzle, either. In states with low income taxes, there are often higher property tax rates or sales taxes to offset the lower revenue generated by personal income tax. It’s important to be familiar with the entire scope of your state’s tax landscape before making a final decision.

Healthcare Services

Many retirees find a need for specialized healthcare services at some point during their retirement, and having quick, convenient access to these services is a top priority for many looking to relocate when they leave the workforce.

Choosing the right destination for your personal needs involves considering proximity to healthcare providers, statewide regulations, Medicare provider participation, and overall long-term care costs in the event you or a loved one needs to access assisted living facilities or continuing care retirement communities.

Lifestyle Options

Enjoying your retirement is about way more than just staying healthy and saving money. What’s the point in preparing for retirement if you can’t enjoy it?

Some people might seek access to outdoor recreation or an active lifestyle, and find a community that embraces those priorities as well. Others want fine dining and luxury services close at hand. Everything from the climate to the scenery to the arts and entertainment scene can play a big role in where you wind up during your retirement, and these considerations are just as important as any other when making your choice.

Best States to Retire in 2027

While every state has something to offer those exiting the workforce, certain states offer big advantages for retirees. We’ve identified the following five states as top picks when considering financial, lifestyle and healthcare needs for those 65 and up.

Wyoming

Wyoming is rapidly becoming a top pick for retirees nationwide, combining low tax rates with unmatched outdoor recreation in smaller communities and vibrant arts and culture opportunities in larger population centers. While healthcare availability can be limited in smaller towns in the wide open spaces of Wyoming, there are many small-to-medium-sized cities like Cheyenne and Casper that offer robust healthcare options.

Wyoming has one of the most advantageous tax situations for retirees in the country, with no individual income tax, retirement income tax, or corporate state income tax. Even the state’s sales tax is well below the national average at just 4 percent. 

North Carolina

North Carolina has something for everyone, with beaches in the eastern part of the state, mountains in the West, and numerous major metropolitan centers throughout the middle of the state for those seeking a more urban lifestyle.

Healthcare access in the state is also quite robust, particularly in major metropolitan regions. Duke University, University of North Carolina and Wake Forest University all support top-tier hospitals and healthcare facilities, and the Research Triangle is an internationally renowned hub for medical innovation.

The tax situation in North Carolina is also advantageous in many ways, with a relatively low 3.99 percent flat tax rate for income and property tax rates below the national average. Social Security benefits are also fully exempt in North Carolina, offering added financial incentives for retirees in particular.

Colorado

Colorado has one of the nation’s top healthcare systems, especially along the Front Range in Denver and nearby cities. This coupled with its world class entertainment industry and outdoor recreation opportunities, makes it a particularly enticing locale for many retirees.

While housing in some areas of Denver and the surrounding region can be relatively expensive, it consistently ranks near the middle of the pack for cost of living nationally. Colorado also offers numerous tax exemptions for retirees and those over the age of 65, significantly decreasing many retirees’ tax burden from the already low 4.4 percent flat tax on income statewide.

South Dakota

Like Wyoming, South Dakota has emerged in recent years as an unexpectedly great location to retire. What it lacks in major cities it more than makes up for with scenic landscapes and outdoor recreation, and its robust healthcare systems located in cities like Sioux Falls and Rapid City make an active lifestyle easy to maintain in this central plains state.

South Dakota shares many of the same tax benefits for retirees as Wyoming as well, with no state income tax, no corporate income tax, and no taxes on inheritance or estates. While property taxes are slightly above the national average, South Dakota still remains an extremely affordable option for those seeking a slower pace and unmatched connection to the great outdoors.

Pennsylvania

With Pittsburgh in the west and Philadelphia in the east, you’re never far from top-quality healthcare, food and drink, and recreation in Pennsylvania. Even the more rural sections near the center of the state are within a reasonable drive of one of these major population hubs, making it possible to embrace country living without giving up access to essential services.

Pennsylvania also offers great tax incentives for retirees, with pensions, Social Security and most retirement account withdrawals exempt from state income tax for filers over the age of 59½.

Bottom Line

Choosing the best state for retirement is an important decision, and no one wants to commit to the wrong destination for what ought to be some of the best years of their lives. Horizons Wealth Management’s team of advisors can help you make sense of the financial landscape in some of your top picks, helping guide you to your perfect retirement destination.

Best Retirement States FAQ