The 10 Best States For Retirement

When it comes to retirement, taxes and affordability are key factors when deciding where to settle.

A new study by Bankrate.com looks at those and other factors in ranking all states based on the environment they offer retirees.

Bankrate to the rescue. The New York City-based personal finance website used five categories related to the life of a retiree and weighted them according to their importance: affordability (40%); overall well-being (25%); quality and cost of healthcare (20%); weather (10%); and crime (5%). Each category was ranked separately to arrive at an overall state ranking.

Here, in ascending order, are Bankrate's top 10 best states to retire to in 2023.

10. Nebraska

Effective in 2024, Nebraska will no longer tax Social Security benefits, It also offers seniors age 65 and older a homestead tax exemption. Nebraska ranks 13^th in affordability; 18^th in healthcare; 37^th in well-being; 35^th in weather; and 21^st in crime.

9. Hawaii

Hawaii does not impose an inheritance or estate tax, exempts Social Security benefits from taxation and has a relatively low state sales tax rate. Hawaii ranks 45^th in affordability; 12^th in healthcare; first in both well-being and weather; and 32^nd in crime.

8. Florida

Florida has no state income taxes and does not tax Social Security benefits, pension funds, IRAs, 401(k)s or other retirement income. Florida ranks 35^th in affordability; 21^st in healthcare; third in both well-being and weather; and 27^th in crime.

7. Pennsylvania

Pennsylvania levies a low flat tax rate on individual income, allowing retirees to stretch their retirement savings further, and does not tax retirement income or Social Security benefits. Pennsylvania ranks 25^th in affordability; 22^nd in healthcare; 14^th in well-being; 33^rd in weather; and 12^th in crime.

6. Wyoming

Wyoming has affordable housing, extensive park and recreational areas, a low crime rate, no income tax, and a secluded lifestyle. Wyoming ranks ninth in affordability; 38^th in healthcare; 16^th in well-being; 47^th in weather; and seventh in crime.

5. Mississippi

Mississippi offers retirees affordable housing, mild winters and a low cost of living. Mississippi ranks second in affordability; 49^th in healthcare; 46^th in well-being; seventh in weather; and 22^nd in crime.

4. Missouri

Missouri offers partial tax breaks on Social Security benefits and pension funds, in addition to a low cost of living, affordable housing, and wide range of outdoor activities. Missouri ranks fifth in affordability; 28^th in healthcare; 32^nd in well-being; 22^nd in weather; and 42^nd in crime.

3. West Virginia

West Virginia has affordable housing, but Social Security income and pension account withdrawals are partially taxed. West Virginia ranks first in affordability; 50^thin healthcare; 26^th in well-being; 20^th in weather; and 26^th in crime.

2. Delaware

Delaware has a low cost of living and does not levy a state sales tax. The state's local property taxes are among the lowest in the country. Delaware ranks 18^th in affordability; 37^th in healthcare; second in well-being; eighth in weather; and 36^th in crime.

1. Iowa

In 2023, Iowa cut the state income tax rate for residents making $75,000 or more a year, and by 2026, everyone will pay a flat tax rate of 3.9%. Iowa ranks third in affordability; 11^thin healthcare; 31^st in well-being; 38^th in weather; and 12^th in crime.

The full report can be viewed here.