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.