Which state has the lowest cost of living for retirement?

Tennessee has the lowest score for cost of living overall, but that doesn't necessarily mean it's a great state for retirees. Retirees should consider a number of factors that include access and costs of healthcare, housing, utilities, poverty rates among seniors, retirement income, and tax-friendliness.

Which is the best state to retire in and low cost?

It depends on the individual situation. Tennessee, Kansas, South Dakota, Missouri, and Oklahoma are the most affordable states for retirees based on overall cost of living scores, while West Virginia, Mississippi, and Louisiana have some of the most affordable homes for retirees. Others may want to retire to a more urban area where healthcare is more accessible, and still others may be able to afford to live anywhere they want.

What state is the best financially to retire in?

A Motley Fool analysis ranked the most tax-friendly places in the country for retirement: Alaska, Wyoming, Tennessee, South Dakota, Michigan, Texas, North Dakota, Georgia, South Carolina, and Oklahoma.

Can I live on $5,000 a month in retirement?

Living on $5,000 in retirement may be possible if you retire to an affordable state, you have minimal debt, and you aren't planning to travel extensively or pursue expensive hobbies. It may be more difficult if you live somewhere with a high cost of living, you require specialized medical care, or you're carrying debt.

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The Most Affordable U.S. States to Retire to in 2026

By Robin Hartill, CFP – Updated Feb 6, 2026 at 9:34 AM EST

Key Points

The most affordable U.S. states for retirees consider living costs, taxes, and Social Security payments.
Housing, groceries, utilities, and transportation costs are key expenses for retirees.
Healthcare quality and affordability are crucial for choosing a retirement destination.

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A graphic listing 5 factors to consider when choosing where to retire: food, electricity, taxes, shelter and healthcare. — Image source: The Motley Fool.

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Top five most affordable states. Data source: Seniorly.com..

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Top 10 most affordable U.S. states to retire in. Source: Motley Fool Survey.

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States with the most affordable homes for retirees. Data sources: Motley Fool Survey and Zillow (2024.)

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States with the lowest cost of living for retirees. Data Sources: Motley Fool and Council for Community & Economic Research (2024).

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Best states to retire in for healthcare. Data sources: The Motley Fool and The United Health Foundation (2024).

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States with lowest poverty rates for senior citizens. Data source: U.S: Census Bureau.

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Best states to retire for taxes. Data source: The Motley Fool and The Tax Foundation.

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About the Author

Robin Hartill, CFP, is a contributing writer at The Motley Fool. Robin’s work has also been published by Yahoo Finance, USA Today, and Penny Hoarder. She is a graduate of the University of Florida.

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