Taxes and the costs of living can severely impact retirement income, but where retirees choose to settle down plays a big part on determing their quality of life, according to a study by SmartAsset.

"Retirement income can get taxed like regular income and local costs of living may further dent a fixed cash flow," SmartAsset says in its report. "So where retirees rake in the most money doesn’t necessarily tell the whole story – it’s how far those dollars stretch that make one comfortable throughout retirement."

The average annual retirement income across the U.S. is $29,600, with averages ranging from $12,892 in Roswell, Ga., to $65,982 in Lawrence, Mass., according to the study.

To find out where retirement income goes the furthest, Smart Asset looked at mean retirement incomes in the 100 places with the highest proportion of seniors, and then adjusted for cost of living and tax rates. Data was culled from the U.S. Census Bureau and Q3 2022 Cost of Living Index from the Council for Community and Economic Research.

The following are SmartAsset's top 15 cities where retirement income extends the furthest.

15. Santa Fe, N.M.
Retirees in Santa Fe receive an average retirement income of $36,124 annually. But with a tax rate of roughly 21% on that income and a cost of living relative to the average at 100%, the value of the retirement income drops to $28,405.

14. St. George, Utah
St. George has an average retirement income of $38,680. Retirees here pay about 2% less than the average for local living expenses such as food, housing, transportation and other necessities. The tax rate on the average retirement income is 24%, bringing its overall value to $30,040.

13. Rockville, Md.
Of the 100 places with a sizable senior population, Rockville has the second highest average retirement income at $60,425. But with a tax rate of roughly 29% on that income and a cost of living 40.1% above the national average, the value of the retirement income dwindles to $30,261 or half the amount received.

12. North Richland Hills, Texas
Retirees in North Richland Hills receive an average retirement income of $35,129. The average tax rate at that income level is roughly 19%, lower than that of most cities, and the cost of living is also about 7% less than the national average. After accounting for those, the value of the average retiree’s income is $30,572.

11. Davenport, Iowa
The overall average value of retiree’s annual income in Davenport is $30,825, down from $35,527 after accounting for a tax rate of 22.5% and a cost of living 11% below the national average.

10. Bethesda, Md.
Bethesda has the highest average retirement income ($62,264) of the 100 places with a sizable senior population, but this D.C. suburb has a cost of living 40.1% higher than the national average of 100. It also has the highest tax rate (30.07%) of average retirement income in the study, which drops the value of the average salary to $31,080.

9. Bismarck, N.D.
Bismarck has an average retirement income of $40,012, which ranks 20th highest of the 100 cities with the largest senior populations per capita. It has 13,519 residents aged 65 or older, about 18% of the city’s population. The cost of living is just 1% higher than the national average, and it has a tax rate on the average retirement income of roughly 20%, which puts the value of the average salary at $31,552.

8. Georgetown, Texas
Georgetown’s seniors total more than a quarter (26.5%) of the city’s population. The average retirement income is $41,027. The cost of living is 1% higher than the national average.Taxes are roughly 19%. Accounting for taxes and local living expenses, the value of that income is $33,207.

7. Scottsdale, Ariz.
Scottsdale has both the second-largest senior population per capita and the eighth-largest senior population by volume. The more than 64,000 retirees in the city receive an average of $45,268 annually, which comes to $33,087 after adjusting for a 22.66% tax rate at this income level and a cost of living that’s about 6% higher than average.

6. Springfield, Ill.
Retirees in Springfield have an annual retirement income of $40,154 per year, but a cost of living 7.7% lower than the national average helps to lessen the burden. The tax rate on the average retirement income comes to roughly 24%. After accounting for tax and local living expenses, the value of their salary is $33,150.

5. Sugar Land, Texas
The average retirement income in Sugar Land is $39,498. Retirees in this city, southwest of Houston, pay 4% less than the average for living expenses such as housing, groceries, transportation, etc. The average tax rate on the average retirement income level is lower than most cities at 19%. Their income value after tax and local expenses is about $33,238.

4. Casas Adobes, Ariz.
Seniors in Casas Adobes make up 22% of  the population. Retirees here have the seventh-highest average retirement income at $49,638. But after a  tax rate that adds up to roughly 24% and a cost of living that is 4.1% higher than average, they end up with a value of $36,468.

3. Evanston, Ill.
Evanston has the third-highest average retirement income at $58.559. But this Chicago suburb’s cost of living is about 17% higher than the average place in the U.S., and the tax rate based on the income level is 27%, dropping the value after tax and cost of living to $36,547.

2. Poinciana, Fla.
Poinciana’s retirees have a fairly high retirement income of $52,311. They face a tax rate of 21.2% and an above average tax rate of 106%, which brings the overall average value of their annual retirement income to $38,779 after accounting for taxes and cost of living.

1. Palm Bay, Fla.
Retirees in Palm Bay not only have a high average retirement income of $55,437, but they get the added benefit of a lower-than-average cost of living, which is 3% below the national average. Their tax rate based on income amounts to 21.7%. Accounting for those adjustments, they end up with an average of $44,724, 15% more than second place Poinciana.

The full report can be viewed here.