The best city to retire is the one that fits your budget, lifestyle, health needs, and proximity to the people you care about. These cities consistently rank among the best because they balance affordability, healthcare, climate, and quality of life.
How We Evaluate Retirement Cities
| Factor | Why It Matters |
|---|---|
| Cost of living | Monthly expenses determine how far your savings stretch |
| State tax treatment | Social Security and IRA tax exemptions save thousands annually |
| Healthcare quality | Access to major hospital systems and specialists |
| Climate | Comfort and health impacts of extreme heat, cold, or humidity |
| Recreation and culture | Quality of life determines long-term satisfaction |
Best Mid-Size Cities to Retire in 2026
Asheville, NC
- Median home price: ~$380,000
- State tax on retirement income: NC taxes most retirement income but exempts some military/government pension; 4.5% flat income tax
- Why retirees love it: Stunning Blue Ridge mountain setting, vibrant arts and music scene, moderate climate, growing healthcare system (Mission Hospital / HCA)
- Best for: Active retirees who value outdoors, arts, and a walkable downtown
Sarasota, FL
- Median home price: ~$430,000
- State tax on retirement income: Florida has no state income tax
- Why retirees love it: Gulf Coast beaches, strong arts scene, excellent healthcare (Sarasota Memorial Hospital), no state income tax
- Best for: Retirees seeking warm weather, beaches, and full state income tax exemption
Chattanooga, TN
- Median home price: ~$295,000
- State tax on retirement income: Tennessee has no broad income tax (no tax on wages or retirement income)
- Why retirees love it: Tennessee River waterfront, outdoor recreation, low cost of living, no state income tax, proximity to Asheville and Atlanta
- Best for: Value-conscious retirees who want outdoor access without paying coastal prices
Scottsdale, AZ
- Median home price: ~$690,000
- State tax on retirement income: Arizona exempts Social Security, government pensions; 2.5% flat income tax on other income
- Why retirees love it: 300+ days of sunshine, world-class healthcare (Mayo Clinic), golf, arts, strong snowbird infrastructure
- Best for: Active, higher-income retirees seeking warm weather and premium amenities
Knoxville, TN
- Median home price: ~$270,000
- State tax on retirement income: No state income tax
- Why retirees love it: Low property taxes, proximity to Great Smoky Mountains, University of Tennessee cultural amenities, affordable healthcare
- Best for: Budget-focused retirees who want outdoor access and low taxes
Greenville, SC
- Median home price: ~$310,000
- State tax on retirement income: SC exempts Social Security, first $10,000 of retirement income (65+); 6.4% income tax on remainder
- Why retirees love it: Mild four-season climate, revitalized downtown, growing healthcare presence, proximity to mountains and coast
- Best for: Retirees seeking a mid-South climate, small city feel, and relative affordability
Fastest-Growing Retirement Cities to Watch
| City | State | Median Home Price | Key Draw |
|---|---|---|---|
| Boise, ID | No income tax on SS | ~$440,000 | Outdoor recreation, clean air |
| Huntsville, AL | Moderate income tax | ~$280,000 | Low cost, growing healthcare |
| Bentonville, AR | Moderate income tax | ~$320,000 | Outdoor trails, arts (Crystal Bridges) |
| Las Vegas, NV | No state income tax | ~$390,000 | Entertainment, affordability vs. California |
How State Taxes Affect Your Retirement Budget
Example: $75,000 annual retirement income (Social Security + IRA withdrawals) in two states:
| State | SS Taxed? | IRA Taxed? | Estimated State Tax |
|---|---|---|---|
| Florida | No (no income tax) | No | $0 |
| Tennessee | No (no income tax) | No | $0 |
| Arizona | No | Yes (2.5%) | ~$1,000–$1,500 |
| North Carolina | Yes (partial) | Yes (4.5%) | ~$2,000–$3,500 |
Tax treatment of retirement income can mean a $3,000–$5,000 annual difference between states — equivalent to months of housing costs in lower-cost markets.
For a broader comparison, see best states to retire in 2026 and cheapest places to retire. Return to the Best Places to Retire hub.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy