Choosing where to retire is one of the biggest financial decisions you will make, and the right city can stretch your retirement savings by years. We evaluated cities based on what matters most to retirees: healthcare quality, overall cost of living, tax friendliness for retirement income, safety, walkability, and access to recreation and culture. Here are the best places to retire in 2026.
Sarasota consistently ranks as one of the best retirement destinations in America, and for good reason. The city offers Gulf Coast beaches, a thriving arts and cultural scene (the Ringling Museum, Sarasota Opera, and multiple theaters), and excellent healthcare through Sarasota Memorial Hospital. Florida's lack of state income tax means your Social Security, pension, and 401(k) withdrawals are not taxed at the state level. The median home price is around $430,000, which is moderate for coastal Florida. The Siesta Key and Lido Key beaches are consistently rated among the best in the country. The main drawbacks are hurricane risk, high homeowners insurance, and summer heat and humidity.
Asheville offers retirees a mountain setting with mild four-season weather, a world-class food and craft beer scene, and the Blue Ridge Parkway at your doorstep. The city has excellent healthcare through Mission Hospital (part of HCA Healthcare) and a strong network of senior services. North Carolina does not tax Social Security benefits, though other retirement income is taxed at the flat 4.5% rate. The median home price is around $400,000. The cultural scene punches well above the city's size, with live music, galleries, and a vibrant downtown. The altitude (about 2,100 feet) keeps summers cooler than lowland Southern cities.
San Antonio offers retirees big-city amenities at a remarkably affordable price. The median home price is around $275,000, and Texas has no state income tax on any income type. The military and veteran community is large (Joint Base San Antonio), and the VA healthcare system here is well-regarded. The Riverwalk provides a walkable core for dining and entertainment, and cultural offerings include the McNay Art Museum, San Antonio Museum of Art, and the historic missions (a UNESCO World Heritage Site). Healthcare options are strong with multiple hospital systems. The main considerations are hot summers and limited public transit, making a car essential.
Lexington is a hidden gem for retirees who want Southern charm, affordable living, and access to quality healthcare. The median home price is around $280,000, and Kentucky does not tax Social Security benefits. The University of Kentucky provides cultural events, continuing education opportunities, and excellent healthcare through UK HealthCare. The Bluegrass Region is beautiful with rolling horse farms, bourbon distilleries, and Keeneland Race Course. Downtown Lexington is walkable with a growing restaurant scene. The cost of living is about 10% below the national average, making retirement savings stretch further.
Tucson offers retirees desert beauty, low cost of living, and over 350 days of sunshine per year at a fraction of Scottsdale's price. The median home price is around $310,000. Arizona does not tax Social Security benefits, and the flat 2.5% income tax rate is one of the nation's lowest. The University of Arizona campus brings cultural events, lectures, and medical facilities. Tucson's food scene is nationally recognized (it is a UNESCO City of Gastronomy), and the surrounding Sonoran Desert provides hiking, birdwatching, and stunning landscapes. Summers are hot (100 to 110 degrees) but drier than Phoenix, and the city sits at 2,400 feet, which moderates temperatures slightly.
State tax policy should be a major factor in your retirement relocation decision, but it is not the only one. Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. However, some of these states have high property taxes or sales taxes that offset the income tax savings. Many other states exempt Social Security from taxation, and some exempt military pensions or portions of other retirement income. Before relocating, calculate your total state and local tax burden including income, property, and sales taxes. A city with a moderate income tax but low property taxes may cost you less overall than a no-income-tax state with high property and sales taxes.
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Florida, Texas, Tennessee, and Nevada are the most popular no-income-tax states for retirees. However, total tax burden depends on property and sales taxes too. Wyoming and South Dakota have no income tax plus low property taxes, making them the lightest total tax burden states, though they have fewer amenities than larger states.
It depends heavily on location. In affordable cities like San Antonio or Lexington, a couple can live comfortably on $50,000 to $60,000 per year. In mid-cost cities like Sarasota or Asheville, plan for $65,000 to $80,000. In expensive metros, $100,000 or more may be needed. Healthcare costs are the biggest variable after housing.
Consider renting for the first year in a new city to test the location before committing. Buying makes sense if you plan to stay long-term (7 or more years) and want to lock in housing costs against inflation. Renting makes sense if you want flexibility, plan to travel extensively, or prefer to keep retirement funds invested rather than tied up in a home.
Verify that your Medicare Advantage plan or Medigap policy works in the new location, or plan to switch during enrollment. Check proximity to hospitals and specialists you need. Research the availability of senior services, home health agencies, and assisted living options. Cities with major medical centers and teaching hospitals generally offer the best care.
Statistics and cost figures are based on industry averages and publicly available data, provided for informational purposes.
Data last reviewed: March 2026. Learn about our data
