Retirees across the U.S. are closely watching the latest studies to find the best retirement states that combine affordability, healthcare, taxes, safety, and lifestyle. As of mid-2025, several states emerge as front-runners in retirement livability, with recent rankings revealing surprising shifts.
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Top Trends Defining the Best Retirement States in 2025
Recent research shows retirees are now weighing more than sunshine and low taxes when choosing among the best retirement states. New priorities include:
- Healthcare access and quality (especially for long-term care).
- Neighborhood safety and crime rates.
- Cost of living, including housing and property tax.
- State tax treatment of retirement income like Social Security, pensions, IRAs.
- Community and lifestyle amenities (proximity to peers, recreation, arts).
These criteria have reshaped the rankings, favoring states that may not score high for weather but deliver on security, support, and affordability.
Key Points Summary
⭐ Best states are increasingly from New England and the Mountain West.
⭐ States with tax-friendly policies toward retirement income are rising.
⭐ Weather still matters, but it’s less dominant than safety or healthcare.
⭐ States once considered “sunny favorites” are declining in rankings when weighed against cost and healthcare.
Which States Are Leading the Pack in 2025
Multiple reports agree: New Hampshire, Maine, Wyoming, Vermont, and Idaho show up consistently in the top ten for best retirement states this year. Rankings place New Hampshire at number 1, followed by Maine (#2), Wyoming (#3), Vermont (#4), and Idaho (#5). These states score highly for safety, favorable taxes, and healthcare access.
Other strong performers include Rhode Island, West Virginia, Wisconsin, Utah, and Virginia. These states don’t always lead in every category, but they balance the components retirees care about.
In contrast, states like Texas, Louisiana, California, Oklahoma, and Florida appear among the less optimal choices—often because of high housing costs, weaker healthcare metrics, or tax burdens.
What Makes These Best Retirement States Stand Out
| Factor | What Top States Often Excel At |
|---|---|
| Tax treatment | Exemptions or low taxes on Social Security, pensions, IRAs; low or no state income tax. |
| Healthcare access | Adequate hospitals, specialists, elder care, long-term services. |
| Safety & Community | Low crime rates, retiree-friendly neighborhoods, peer age presence. |
| Affordability | Lower property taxes, reasonable housing, lower everyday costs. |
| Amenities & Lifestyle | Nature, arts, recreation, cultural community, moderate weather. |
Wyoming and South Dakota excel with low taxes and costs. New England states like Vermont and New Hampshire shine in safety, healthcare, and culture—even if their winters are harsher.
Latest Shifts & Surprises in 2025 Rankings
- Florida, long seen as the retirement capital, now scores lower in healthcare, reducing its top ranking.
- Washington State dropped due to high living costs despite strengths in environment.
- New England states rise thanks to healthcare, safety, and cultural appeal.
- Tax-friendly laws boost states like South Dakota, Wyoming, and Idaho.
- Unexpected names like West Virginia and Wisconsin now appear stronger due to affordability and safety.
Ranking by Key Metrics Among Best Retirement States
| State | Strengths Seen in 2025 | Weaknesses |
|---|---|---|
| New Hampshire | #1 safety, favorable taxes, strong healthcare. | Harsh winters, rising housing costs. |
| Maine | Excellent healthcare, strong community, cultural life. | Cold winters, rural medical access gaps. |
| Wyoming | No state income tax, low cost, natural beauty. | Sparse services in rural areas, tough winters. |
| Florida | Affordable for many retirees, senior lifestyle, recreation. | High insurance, weaker healthcare in some areas. |
| South Dakota | Tax-friendly, affordable, low regulation. | Limited healthcare in rural regions, harsh climate. |
What Retirees Now Prioritize in Choosing Among Best Retirement States
- Healthcare access – distance to hospitals and specialists.
- Taxes – impact on pensions, Social Security, IRAs.
- Affordability vs. lifestyle – balancing housing and climate.
- Safety and community – low crime, peer social life, recreation.
- Climate – avoiding extremes that affect health and mobility.
How Policy & Law Are Influencing the Best Retirement States
- Expanded retirement income exemptions in several states.
- More property tax relief programs for senior homeowners.
- Increased investment in healthcare infrastructure.
- Safety initiatives boosting retiree confidence in certain regions.
- Growth in transportation and cultural funding for older populations.
Top 10 Best Retirement States of 2025
- New Hampshire
- Maine
- Wyoming
- Vermont
- Idaho
- Rhode Island
- West Virginia
- Wisconsin
- Utah
- Virginia
States That Are Falling Behind
- Texas: Strong in taxes, weak in healthcare and safety.
- Florida: Still popular, but high costs and insurance burdens weigh it down.
- California: Expensive housing, higher taxes, healthcare gaps.
How to Use These Rankings in Your Decision
- Set personal priorities (taxes, healthcare, or climate).
- Look beyond the top 10—a state ranked lower may fit you better.
- Compare ongoing vs. upfront costs.
- Monitor law changes (tax exemptions, healthcare funding).
- Spend time in a state before making the move.
What to Expect in the Coming Years
- More telehealth and senior healthcare investment.
- Climate impacts reshaping retiree choices.
- Tax policy shifts changing the playing field.
- Ongoing housing affordability pressure.
- Migration patterns influencing future rankings.
Conclusion
The best retirement states in 2025 highlight a shift toward healthcare access, safety, and affordability, with New England and Mountain West states leading. Where you choose depends on your own balance of lifestyle, taxes, and healthcare priorities.
Tell us in the comments—where would you love to retire, and why?
FAQ
Q: Do all states tax retirement income?
A: No. Several states exempt Social Security, pensions, or IRA withdrawals, while others tax them partially.
Q: Is low cost of living the main factor for retirees?
A: It helps, but without good healthcare or safety, affordability alone isn’t enough.
Q: Does climate still matter in rankings?
A: Yes, but less than before. Retirees increasingly prioritize healthcare, safety, and taxes over warm weather.
Disclaimer: This article is for informational purposes only. It is not legal, tax, or financial advice. Consult qualified professionals before making retirement or relocation decisions.