Where you retire matters as much as how much you save. The gap between retiring in Mississippi vs Hawaii can exceed $50,000 per year in living costs — meaning the same nest egg that funds a comfortable retirement in the South could run out decades earlier on the coasts. This guide ranks all 50 states from most affordable to most expensive for retirees, using 2026 cost of living data.
Key finding: A cost of living index of 100 represents the national average. States below 100 are more affordable than average; states above 100 are more expensive. The range runs from 85 (Mississippi) to 184 (Hawaii) — a 2.2x difference between the cheapest and most expensive states.
Rankings based on 2026 cost of living index (national average = 100), incorporating housing, groceries, utilities, transportation, healthcare, and miscellaneous expenses. Social Security tax treatment noted where relevant.
| Rank | State | COL Index | Est. Monthly Cost (Single) | SS Tax |
|---|---|---|---|---|
| 1 | Mississippi | 85 | $2,917 | Not taxed |
| 2 | West Virginia | 87 | $2,264 | Not taxed (2026) |
| 3 | Arkansas | 88 | $2,950 | Not taxed |
| 4 | Oklahoma | 89 | $3,050 | Not taxed |
| 5 | Missouri | 89 | $3,100 | Not taxed |
| 6 | Indiana | 90 | $3,150 | Not taxed |
| 7 | Kansas | 90 | $3,200 | Not taxed |
| 8 | Tennessee | 91 | $3,200 | Not taxed |
| 9 | Alabama | 91 | $3,250 | Not taxed |
| 10 | Iowa | 91 | $3,250 | Not taxed (2023+) |
| 11 | Kentucky | 92 | $3,300 | Not taxed |
| 12 | Ohio | 92 | $3,300 | Not taxed |
| 13 | Michigan | 93 | $3,350 | Partial exemption |
| 14 | South Dakota | 93 | $3,350 | Not taxed |
| 15 | Nebraska | 93 | $3,400 | Not taxed (2025+) |
| 16 | Georgia | 94 | $3,400 | Not taxed |
| 17 | Louisiana | 94 | $3,400 | Not taxed |
| 18 | Texas | 95 | $3,450 | Not taxed |
| 19 | North Carolina | 95 | $3,500 | Not taxed |
| 20 | Wisconsin | 96 | $3,500 | Not taxed |
| 21 | South Carolina | 96 | $3,550 | Not taxed |
| 22 | Wyoming | 96 | $3,550 | Not taxed |
| 23 | Idaho | 97 | $3,600 | Not taxed |
| 24 | Pennsylvania | 97 | $3,600 | Not taxed |
| 25 | North Dakota | 98 | $3,650 | Not taxed |
| 26 | New Mexico | 98 | $3,650 | Taxed |
| 27 | Florida | 99 | $3,700 | Not taxed |
| 28 | Nevada | 100 | $3,750 | Not taxed |
| 29 | Illinois | 100 | $3,750 | Not taxed |
| 30 | Minnesota | 101 | $3,800 | Taxed |
| 31 | Arizona | 101 | $3,800 | Not taxed |
| 32 | Virginia | 102 | $3,850 | Not taxed |
| 33 | Delaware | 102 | $3,850 | Not taxed |
| 34 | Maine | 103 | $3,900 | Not taxed |
| 35 | New Hampshire | 104 | $3,950 | Not taxed |
| 36 | Vermont | 105 | $4,000 | Taxed |
| 37 | Montana | 105 | $4,000 | Taxed |
| 38 | Utah | 106 | $4,050 | Taxed |
| 39 | Colorado | 107 | $4,100 | Taxed |
| 40 | Rhode Island | 108 | $4,150 | Taxed |
| 41 | Alaska | 109 | $4,200 | Not taxed |
| 42 | Oregon | 110 | $4,250 | Not taxed |
| 43 | New Jersey | 114 | $4,450 | Not taxed |
| 44 | Washington | 114 | $4,450 | Not taxed |
| 45 | Connecticut | 115 | $4,500 | Taxed |
| 46 | Maryland | 116 | $4,550 | Not taxed |
| 47 | New York | 121 | $4,800 | Not taxed |
| 48 | Massachusetts | 122 | $4,850 | Not taxed |
| 49 | California | 138 | $5,500 | Not taxed |
| 50 | Hawaii | 184 | $8,250+ | Not taxed |
Sources: Bureau of Economic Analysis Regional Price Parities, Council for Community and Economic Research, Missouri Economic Research Center, Coastal Moving Services 2026 analysis. Monthly cost estimates are for a single retiree and include all living expenses. Actual costs vary by city, lifestyle, and housing situation.
Mississippi is the most affordable state in America for retirees, with costs running 15% below the national average across all spending categories. A single retiree can live comfortably on approximately $2,917/month. Social Security benefits are not taxed. The trade-off is limited healthcare infrastructure outside of Jackson and a lower quality-of-life ranking nationally.
West Virginia completed the full phase-out of its Social Security tax in 2026, making it significantly more attractive for retirees. Monthly costs run about $2,264 for singles after Social Security income is factored in. The state offers beautiful mountain scenery and a low cost of housing, though rural healthcare access can be limited.
Arkansas ranks first for overall living costs according to Motley Fool's 2026 analysis. The state combines low non-housing costs with affordable housing and no Social Security tax. Little Rock offers Southern culture and growing amenities. Summers are hot and humid; healthcare access outside metro areas can be sparse.
Oklahoma offers low grocery costs (among the lowest nationally), no Social Security tax, and affordable housing throughout the state. Tulsa and Oklahoma City both offer solid healthcare infrastructure and cultural amenities at a fraction of coastal prices.
Missouri doesn't tax Social Security and offers low overall costs. Kansas City and St. Louis provide urban retirement options with world-class hospitals and cultural institutions at affordable Midwest prices. The state sits in the center of the country with easy access to family in all directions.
Hawaii is 84% more expensive than the national average — by far the most costly state for retirement. Nearly everything must be shipped to the islands, driving up costs across all categories. A comfortable retirement requires approximately $99,000+ annually, or roughly $8,250/month. The one silver lining: Hawaii does not tax Social Security and has the lowest property tax rate in the nation at 0.32%.
California's extreme housing costs — particularly in the Bay Area and Los Angeles — drive it to the second most expensive position. Social Security is not taxed, but state income taxes on retirement income can be significant. A comfortable retirement in most California metros requires $5,500+/month.
These Northeast states combine high housing costs with cold winters and dense urban living. They do offer exceptional healthcare — Massachusetts and New York are home to some of the world's best medical centers. For retirees with serious health concerns, the premium may be justified.
Nine states have no state income tax at all, meaning Social Security, pension income, IRA withdrawals, and investment income are all untaxed at the state level:
Additionally, many other states exempt Social Security specifically (as shown in the table above). Eight states still tax Social Security in 2026: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont.
Cost of living is just one factor in a retirement location decision. Consider also:
Use our retirement calculator to see if your savings will last — and how your state's cost of living affects the math.
Use the Retirement Calculator →The difference between retiring in Mississippi and Hawaii is over $50,000 per year. The most affordable states — Mississippi, West Virginia, Arkansas, Oklahoma, and Missouri — all offer comfortable retirements for $3,000-$3,500/month and none tax Social Security. The most expensive states offer exceptional amenities and healthcare but require $4,500-$8,000+/month. Wherever you land, run the retirement math before you commit to a location.
For informational and educational purposes only. Cost estimates are averages and vary significantly by city, lifestyle, and housing choice. Not financial advice. Consult a financial planner before making retirement relocation decisions.