The best states to retire for high-net-worth households are the ones where state taxes, healthcare access, housing costs, insurance premiums and climate fit the way you plan to live. No state leads on every measure, and the answer changes depending on whether you’re drawing $250,000 a year from an IRA, realizing large capital gains from a taxable portfolio or planning for an estate that’s approaching the federal exemption. This guide compares the best states to retire in 2026 using current tax, healthcare and cost-of-living data, and it covers the day-to-day details that rankings tend to skip, such as Florida’s humidity and bugs.
If you’re weighing a move and want to see how it would change your taxes and retirement income, you can schedule a conversation with Inclinevest Wealth Management. You can also review how we work with high-net-worth pre-retirees and retirees on our services and fees page.
What Makes the Best States to Retire Different for a Wealthy Retiree?
For a wealthy retiree, the best states to retire are the ones that tax your specific mix of income lightly and keep housing, insurance and healthcare costs predictable. A high-net-worth household might draw from Social Security, pensions, traditional IRAs, 401(k)s, taxable accounts, rental properties, business interests or trusts, and states treat interest, dividends, capital gains and retirement withdrawals differently. Estate planning also matters more as assets grow.
Practical costs count too. You may have the means to live almost anywhere, but that doesn’t mean you want a $20,000 property tax bill, a rising insurance premium or a long drive to a major medical center. For that reason, I’d compare each state across several categories instead of relying on one tax rate.
Which States Have No Individual Income Tax in 2026?
In 2026, the states with no broad individual income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming. New Hampshire repealed its tax on interest and dividends effective January 1, 2025, so it no longer taxes personal income. Washington has no broad income tax either, but it taxes certain long-term capital gains, which matters for anyone with a large taxable portfolio.
States without an income tax still collect revenue from other sources. Texas and New Hampshire lean on property taxes, Tennessee and Texas rely on sales taxes, and Florida’s costs show up in insurance and condo fees. Here’s how the best states to retire compare on the two state taxes that matter most, along with each state’s main tradeoff.
| State | State income tax (2026) | State estate or inheritance tax | Main tradeoff |
|---|---|---|---|
| Florida | None | None | Homeowners insurance, humidity, hurricanes |
| Nevada | None | None | Extreme summer heat, water supply |
| Tennessee | None | None | High sales taxes, tornado risk |
| Texas | None | None | High property taxes |
| Wyoming | None | None | Distance from major medical centers, harsh winters |
| South Dakota | None | None | Cold winters, smaller medical hubs |
| North Carolina | 3.99% flat | None | Hurricane and flood exposure |
| South Carolina | Graduated, with breaks on some retirement income | None | Coastal storms, insects, humidity |
| Arizona | 2.5% flat | None | Extreme heat, water supply |
| Colorado | 4.4% flat | None | Higher income tax, pending ballot measures |
Florida: No Income Tax, Plus Humidity, Bugs and Insurance to Plan For
Florida is one of the best states to retire for anyone focused on state taxes. It has no individual income tax and no estate or inheritance tax, so wages, IRA withdrawals, pension income, interest, dividends and capital gains face no state income tax. A retiree with $300,000 to $500,000 of annual taxable income who leaves a high-tax state and establishes genuine Florida residency could save a meaningful amount each year.
The costs show up elsewhere. Florida’s effective property tax rate on owner-occupied housing is 0.78% in the Tax Foundation’s 2026 data, with county averages from about 0.44% to 0.99%. Homesteaded primary residences receive an exemption and a cap on annual assessed-value increases, but that cap resets when you buy, so a newly purchased home is taxed closer to market value than a long-held neighbor’s.
Homeowners insurance is the larger variable. Bankrate’s 2026 analysis put Florida’s average annual premium near $5,800, compared with about $2,400 nationally, and other estimates run higher for coastal and southern counties. Roof age, wind-mitigation features and flood zone all affect pricing, and flood coverage is a separate policy. Condo buyers should review the association’s reserve study and any pending special assessments, since Florida tightened structural inspection and reserve requirements for older buildings after the 2021 Surfside collapse and many associations have raised fees.
Humidity and bugs affect both cost and comfort. Summer dew points across most of the state sit in the 70s, which makes a 90-degree day feel heavier and keeps air conditioning running much of the year. Mold and mildew can develop quickly in closets, garages and poorly ventilated rooms, so many homeowners run dehumidifiers and aim to keep indoor humidity near or below 50%. Mosquitoes are common from spring through fall and year-round in the southern half of the state, no-see-ums are a nuisance near the coast and marshes, fire ants are widespread, and large American cockroaches, often called palmetto bugs, turn up even in clean homes. Termites threaten wood framing, and lovebug swarms in spring and late summer coat cars and windshields. Most homeowners budget for recurring pest control and termite protection.
Hurricane season runs June 1 through November 30, afternoon thunderstorms are frequent in summer, and many retirees shift outdoor activity to early morning or spend the hottest months elsewhere. Even among the best states to retire, Florida asks you to plan for weather. Naples, Sarasota, Tampa Bay, Jacksonville, Orlando and Miami differ on storm surge exposure, flood zones and healthcare systems, so evaluate individual communities instead of the state as a whole.
Nevada: No Income Tax and a Dry Desert Climate
Nevada is one of the best states to retire for households with heavy investment income and estate concerns. It has no individual income tax and no estate or inheritance tax, so IRA withdrawals, pension income, interest, dividends and capital gains face no state income tax.
Henderson and the Las Vegas metro area provide major healthcare systems and Harry Reid International Airport, while Reno offers a smaller market near the Sierra Nevada. Southern Nevada summers are extremely hot, and many residents spend much of the season indoors or away. The air is dry, so humidity and insect concerns are far lighter than in Florida, although scorpions can turn up in desert neighborhoods. Water supply, housing costs and insurance deserve a close look, since the Las Vegas area depends heavily on the Colorado River.
Tennessee: No Income Tax, High Sales Tax
Tennessee ranks among the best states to retire for people with large IRA withdrawals or taxable investment income. It has no individual income tax, the former Hall tax on interest and dividends ended in 2021, and there’s no state estate tax. Nashville offers extensive healthcare and entertainment, Knoxville and Chattanooga offer outdoor recreation, and housing costs and property taxes are relatively low.
Tennessee funds government partly through sales taxes, and combined state and local rates are among the highest in the country, which matters for retirees who spend heavily. Summers are humid, parts of the state face tornado risk in spring, and healthcare access varies by community, so review insurance and the specific metro area.
Texas: No Income Tax, Higher Property Taxes
Texas ranks among the best states to retire on income tax alone, since it has no individual income tax and no estate or inheritance tax. The tradeoff is property tax. The Tax Foundation’s 2026 data put the statewide effective rate on owner-occupied housing at 1.40%, among the highest in the country. On a $1.5 million home, that’s roughly $21,000 a year, compared with about $11,700 at Florida’s 0.78% rate.
Actual bills depend on the county, school district and exemptions. Texas voters approved larger homestead exemptions in 2025, including added relief for homeowners 65 and older, so check current amounts for the county you’re considering. Houston and the Gulf Coast are humid and carry hurricane and flood exposure, while Dallas-Fort Worth, Austin and San Antonio face hail and severe storms that can raise premiums and roof replacement costs.
Wyoming: Low Taxes, Low Density
Wyoming is one of the best states to retire for affluent households that value space and tax efficiency. It has no individual income tax, no state estate tax and effective property tax rates of roughly half of one percent, along with abundant outdoor recreation.
The tradeoff is access to services. Some communities sit a long way from major medical centers and international flights, and winters are long with strong winds. Jackson Hole is the main exception to Wyoming’s lower housing costs, with some of the most expensive real estate in the country.
South Dakota: Estate Planning Flexibility and Cold Winters
South Dakota is one of the best states to retire for estate planning flexibility. It has no individual income tax and no estate or inheritance tax, and it’s known for trust-friendly laws. You don’t have to live there to use them, since families in other states often set up trusts with a South Dakota trustee.
For residents, the tradeoffs are long, cold winters and smaller population centers. Sioux Falls and Rapid City serve as the main healthcare and airport hubs, and the rest of the state has fewer specialists and flight options.
North Carolina: Moderate Taxes, Strong Healthcare
North Carolina belongs on any list of the best states to retire for people who want balance instead of a zero income tax. Its flat individual income tax rate is 3.99% in 2026, with further reductions scheduled under state law, so confirm the rate for the year you’d move. The state has no estate or inheritance tax, and its effective property tax rate is 0.66%.
Charlotte offers a large airport, Raleigh-Durham has universities and healthcare, Wilmington sits on the coast and Asheville is in the mountains. Coastal communities face hurricane, flood and insurance considerations, and western North Carolina’s flooding from Hurricane Helene in 2024 showed that mountain towns carry flood risk too. Summers are humid, and mosquitoes and ticks are part of life outdoors.
South Carolina: Low Property Taxes and Coastal Tradeoffs
South Carolina is one of the best states to retire for warm weather at a lower cost than many coastal markets. It offers favorable treatment of certain retirement income, effective property tax rates of roughly half of one percent and no estate or inheritance tax. The state also generally assesses a legal-residence home at a lower ratio than a second home, so making the property your primary residence affects your tax bill.
Charleston, Greenville, Hilton Head and Myrtle Beach offer very different experiences. The Lowcountry is humid, with mosquitoes and sand gnats in warm months, and it carries hurricane, flood and insurance considerations.
Arizona: Low Flat Tax, Extreme Heat
Arizona is one of the best states to retire for warm weather and a low flat income tax. The 2026 rate is 2.5%, Social Security benefits aren’t taxed, there’s no estate or inheritance tax, and effective property tax rates are roughly half of one percent. Phoenix and Scottsdale offer extensive healthcare and airport access, and Tucson has a somewhat different feel.
Heat is the major consideration. Low humidity doesn’t offset 110-degree afternoons, monsoon storms bring dust and flash flooding, and scorpions turn up in many neighborhoods. Water resources and homeowners insurance also deserve a close look.
Colorado: Higher Income Tax, Strong Older-Adult Health Rankings
Colorado shows why the best states to retire can’t be chosen on taxes alone. Its flat income tax rate is 4.4% in 2026, higher than Arizona and North Carolina, and there’s no estate or inheritance tax. The effective property tax rate is 0.50%. Colorado ranked fifth in the 2026 America’s Health Rankings Senior Report, and the Denver metro area offers major healthcare systems, Denver International Airport and outdoor recreation. The dry climate makes humidity and bugs minor issues, although hail and wildfire exposure have pushed insurance higher in many areas, and retirees with heart or lung conditions should ask their physician about altitude.
Colorado’s tax picture may change. Voters will decide two competing measures on the November 3, 2026 ballot. Initiative 195 would replace the flat rate with a six-tier structure from 3.7% to 8.4%, and its backers say it would lower rates for most residents while raising them for incomes above roughly $500,000. Initiative 232 would cap the rate at 4.4%. If both pass, the one with more votes controls where they conflict.
How Do Property Taxes Change the Math for the Best States to Retire?
Property taxes can offset income tax savings, and the effective rate on owner-occupied housing is the number to compare. The Tax Foundation’s 2026 data show statewide rates of 0.50% in Colorado, 0.66% in North Carolina, 0.78% in Florida and 1.40% in Texas. Nationally, rates run from roughly 0.3% in Hawaii to more than 1.6% in New Jersey and Illinois, depending on the dataset.
On a $1.5 million home, each percentage point of difference equals about $15,000 a year. A retiree who moves to Texas to eliminate state income tax and buys an expensive home can give back much of the savings through property tax. Price the specific home, county and exemptions before deciding.
Does Cost of Living Still Matter When You’re Wealthy?
Yes, because cost differences compound over a long retirement and change which of the best states to retire fits your budget. The Bureau of Economic Analysis measures price levels with Regional Price Parities, where 100 equals the national average. In 2024, California had the highest state RPP at 110.7, followed by Hawaii at 110.0 and New Jersey at 108.8, while Arkansas had the lowest at 86.9 and Mississippi followed at 87.0. A lifestyle that costs $180,000 a year in one place and $220,000 in another adds up to $800,000 over 20 years before investment returns or inflation.
How Does Healthcare Affect the Best States to Retire?
Healthcare can matter more than taxes because taxes can be calculated today while your needs over the next 20 or 30 years are harder to predict. A 62-year-old may focus on housing and travel, but two decades later proximity to specialists and hospitals can carry far more weight.
The 2026 America’s Health Rankings Senior Report ranked Vermont, Utah, New Hampshire, Minnesota and Colorado as the five highest states for older-adult health across 36 indicators. A retirement decision also involves taxes, housing, climate and family, so treat the ranking as one data point. Medicare is federal, but about 55% of eligible beneficiaries were enrolled in Medicare Advantage in 2026, according to KFF, and plans and provider networks vary by county. Compare health systems in each community, such as Naples versus Sarasota or Scottsdale versus Tucson.
How Do States Tax Different Types of Retirement Income?
Your income sources matter as much as your income amount when you rank the best states to retire. Traditional IRA and 401(k) withdrawals are generally treated differently from Roth distributions, some states give pensions special treatment, and many states exempt Social Security. A $5 million taxable portfolio can generate substantial interest, dividends and gains even after you stop working.
Federal law generally prevents a state from taxing the retirement income of someone who has moved out, including qualified plan and IRA distributions, although income from rental property or a business tied to that state can stay taxable. Timing matters too, because a large Roth conversion or sale of appreciated stock completed after you establish domicile in a no-income-tax state can be taxed differently than one completed before the move. Our piece on how much you can sustainably withdraw in retirement covers the income side.
How Do Estate Taxes Change With Wealth?
When ranking the best states to retire, start with the federal baseline: for people who die in 2026, the estate tax basic exclusion amount is $15 million per person. At $2 million, most households have little federal exposure, at $5 million state taxes and estate planning carry more weight, and at $10 million or more the size of your estate, future growth, prior gifts and trusts all deserve close attention.
Some of the best states to retire for income tax still impose their own estate tax, often with exemptions far below the federal amount, and a handful impose inheritance taxes on certain beneficiaries. Moving to a state with neither can have implications well beyond the annual tax return, especially with a closely held business, substantial real estate or concentrated stock. Our guide to estate planning for high-net-worth families covers these issues in more depth.
What About California and New York?
California’s top individual income tax rate reaches 13.3%, and New York has high state rates plus a local income tax in New York City, so leaving either state for one of the best states to retire can produce significant savings. Family, friends, healthcare, existing property and lifestyle can all keep a retiree where they are, and a move can mean buying another home or traveling farther to see family. The right comparison is the net cost of moving, which includes the tax savings, the cost of the new home and the value of what you’d leave behind.
How Do You Establish Residency When You Move?
Moving to one of the best states to retire for taxes works only if you establish domicile there, and changing your mailing address doesn’t change your tax residency. Establishing a new domicile can involve your primary residence, driver’s license, voter registration, vehicle registration, homestead exemption, banking relationships, time spent in each state, the location of personal belongings and your estate planning documents. Some high-tax states scrutinize departing residents closely, so keep records of where you spend your time and work with a qualified tax professional before you change your domicile.
How Should You Compare Two States Before You Move?
Run the numbers using your actual circumstances. This table lists what to compare across the best states to retire on your list.
| Factor | What to Compare |
|---|---|
| State income tax | Tax on your actual retirement income, including IRA, pension and capital gains |
| Estate and inheritance tax | Exemption amounts and rates |
| Property tax | Annual tax on the home you want |
| Sales tax | Combined rate on your spending |
| Insurance | Homeowners, flood and wind premiums and deductibles |
| Housing | Purchase price, HOA or condo fees, maintenance |
| Healthcare and Medicare | Hospitals, specialists, plans and networks |
| Climate | Heat, cold, humidity and storm exposure |
| Bugs and pests | Mosquitoes, termites and pest control costs |
| Access and lifestyle | Airports, distance to family and the life you want to live |
Which Are the Best States to Retire for Each Priority?
- Lowest state income tax: Florida, Nevada, Tennessee, Texas, Wyoming and South Dakota, along with Alaska and New Hampshire. Washington needs separate review because of its capital gains tax.
- Estate planning flexibility: Florida, Nevada, South Dakota, Tennessee, Texas and Wyoming have no state estate or inheritance tax, and South Dakota is also known for its trust laws.
- Older-adult health: Colorado, Minnesota, New Hampshire, Utah and Vermont ranked highest in the 2026 America’s Health Rankings Senior Report.
- Warm weather: Florida, Arizona, Nevada, South Carolina and North Carolina, with different tradeoffs involving humidity and bugs, heat, hurricanes and water.
- Lower property taxes: Colorado, Florida, North Carolina, Nevada, Arizona, South Carolina and Wyoming have effective rates well below Texas.
Choosing Among the Best States to Retire
If you can afford to choose where you live, that choice can be a meaningful part of your retirement plan. Florida and Nevada suit retirees focused on eliminating state income tax, Tennessee offers the same advantage with a different climate, Texas works if you price the property taxes, and Wyoming and South Dakota pair tax efficiency with smaller populations and colder winters. North Carolina, South Carolina and Arizona offer different mixes of taxes, healthcare and climate, and Colorado offers strong older-adult health rankings despite a higher income tax.
Look at the complete financial picture, then weigh the factors that don’t fit in a spreadsheet, including family, your tolerance for heat, cold, humidity and bugs, and access to airports and major cities. The goal is a place where your finances and the life you want to live fit together. If you’re comparing two or three of the best states to retire, we can model the state income tax, property tax and cost differences against your actual income sources. You can schedule a conversation or see how our planning and fees work.
Key Takeaways
- The best states to retire for wealthy households depend on your income sources, estate size, healthcare needs and climate tolerance, so no single state wins on every measure.
- Eight states have no broad individual income tax in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming. Washington taxes certain capital gains.
- Property tax can offset income tax savings. Texas’s statewide effective rate is 1.40%, compared with 0.78% in Florida, 0.66% in North Carolina and 0.50% in Colorado.
- Florida’s costs include homeowners insurance averaging roughly $5,800 a year, humidity control, pest management and hurricane exposure.
- The federal estate tax exclusion is $15 million per person in 2026, and state estate and inheritance taxes can apply at much lower levels.
- Healthcare is local, so compare specific metro areas, hospitals and Medicare Advantage networks in each of the best states to retire you’re considering.
- Colorado voters will decide competing income tax measures on November 3, 2026.
- Work with a tax professional before changing your domicile, and compare the net cost of moving across the best states to retire instead of one tax rate.
About the Author
Gabriel Motta, CFP®, MBA, is the founder and principal of Inclinevest Wealth Management, a fee-only fiduciary retirement financial advisor and financial planner. He works with high-net-worth pre-retirees and retirees nationwide, with particular experience serving aerospace and defense professionals. As a retirement planner and wealth manager, Gabriel helps clients navigate retirement income planning, Social Security strategy, tax-efficient withdrawals, and equity compensation. Gabriel is a NAPFA and XY Planning Network member. Learn more about Gabriel and Inclinevest Wealth Management or schedule a conversation.
Sources
- Facts & Figures 2026: How Does Your State Compare? Tax Foundation. https://taxfoundation.org/data/all/state/2026-state-tax-data/
- Taxes in Colorado (2026 rates and effective property tax rate). Tax Foundation. https://taxfoundation.org/location/colorado/
- Taxes in North Carolina (2026 rates and effective property tax rate). Tax Foundation. https://taxfoundation.org/location/north-carolina/
- Florida State Taxes: What You’ll Owe in the 2026 Tax Season. AARP, citing Tax Foundation data. https://www.aarp.org/states/florida/state-tax-guide/
- Texas State Taxes: What You’ll Owe in the 2026 Tax Season. AARP, citing Tax Foundation data. https://www.aarp.org/states/texas/state-tax-guide/
- Personal Income Tax Rates 2026. Smith and Howard, from Thomson Reuters Tax & Accounting. https://www.smith-howard.com/staterates26/
- America’s Health Rankings 2026 Senior Report: State Rankings. United Health Foundation. https://www.americashealthrankings.org/publications/reports/2026-senior-report/state-rankings
- Medicare Advantage in 2026: Enrollment Update and Key Trends. KFF. https://www.kff.org/medicare/medicare-advantage-enrollment-update-and-key-trends/
- Regional Price Parities by State and Metro Area. U.S. Bureau of Economic Analysis. https://www.bea.gov/data/prices-inflation/regional-price-parities-state-and-metro-area
- Colorado voters will decide on a graduated income tax initiative that competes with an income tax cap measure in November. Ballotpedia News. https://news.ballotpedia.org/?p=50913
- Colorado voters to decide on income tax cap measure that competes with proposed graduated income tax initiative. Ballotpedia News. https://news.ballotpedia.org/?p=50637
- What’s New: Estate and Gift Tax. Internal Revenue Service. https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax
- True Cost of Home Insurance, 2026 analysis. Bankrate.
This article is for general informational and educational purposes only. It isn’t personalized investment, tax, or legal advice, and it shouldn’t be relied on as a substitute for guidance specific to your situation. Inclinevest LLC is a registered investment adviser. Registration doesn’t imply any level of skill or training. Please consult a qualified professional before making decisions about your own financial circumstances.
