Best States to Retire for Retirees in the U.S. in 2026

A recent study conducted by Motley Fool Research asked 2,000 retirees what actually matters when choosing where to live -- then scored every state accordingly. Quality of life carried the most weight at 31%, followed by healthcare, housing, crime, climate, taxes, and cost of living.

The result is a ranking that punishes states that are cheap but hollow and rewards ones that deliver across the board. Three states separated themselves from the pack -- and here they are.

3. Texas

Total retirement score: 65

The tax pitch is the first thing you often hear about Texas, and for good reason: no state income tax or tax on Social Security, pensions, 401(k)s, or IRAs. And there's no estate or inheritance tax either. For retirees living primarily on investment income and distributions, it's one of the most favorable structures in the country.

That's not the whole picture, however. Texas property taxes are expensive, with some of the highest effective property tax rates nationally.

But beyond taxes, Texas really earns its spot with the best climate score on the entire list -- a perfect 100 -- and its general affordability. The state earned a cost-of-living score of 94 and a housing score of 81.

2. California

Total retirement score: 66

Most people assume California is too expensive to retire in, and for coastal cities, they have a point: The housing score is 10 -- the second-worst in the country behind Hawaii -- and the top income tax rate hits 13.3%. And unlike Texas, California doesn't offer much in the way of tax breaks. Pensions, 401(k) withdrawals, and IRA distributions are all fully taxable, though Social Security does get a pass.

But seniors don't move to California to pay less in taxes. It's because California offers beautiful scenery, pleasant weather, and a general good quality of life -- the state earns a perfect 100 on that front. That score captures walkability, dining, arts, entertainment, airport access, and outdoor recreation. No other state offers the same breadth of things to do in retirement.

Image source: Getty Images.

For budget-conscious retirees, California does get much more affordable if you go inland. Bakersfield, Fresno, and Redding run significantly cheaper than cities on the coast.

1. Florida

Total retirement score: 70

Florida earned the top spot by delivering across the board:

• Climate: 98
• Crime and safety: 96
• Tax burden: Zero state income tax, estate tax, or inheritance tax.

Healthcare access includes top hospitals like Mayo Clinic Jacksonville, Tampa General, and Cleveland Clinic Florida. The overall package is why Florida has been the default retirement destination for decades -- and why it still is.

The one major caveat is insurance. Average homeowners' premiums topped $5,800 in 2026, the highest in the nation. You're paying a real cost to live in a hurricane zone, and while recent legislative reforms have started stabilizing rates, that expense isn't going away.

Still, the breadth of what Florida offers is hard to match.

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