These Are the 10 Best States to Retire In

Relocating to another state can be one of the best ways to downsize your living expenses in retirement. Depending on where you live today, a new address can lower your income taxes, housing costs, and healthcare premiums. You might even get a climate upgrade while you're at it.

Here are 10 of the best retiree-friendly states, based on the tax structure, average Medicare Advantage premiums, and property values. If you need to create some breathing room in that retirement budget, moving to one of these states can help you do it.

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Florida has a lot to offer seniors, including no state income tax, many senior-focused communities, low Medicare costs, and a sunny, warm climate. It's no wonder more than 4 million Florida residents are aged 65 and older. Seniors account for nearly 20% of Florida's population, which is nearly 30% above the national average.

The Florida average home value is on par with the national average at $262,291 -- but there's a lot of variability across the state. A typical home price in Tallahassee, for example, is about $195,000. But a home in Orlando is more likely to be priced above $270,000.

Florida seniors pay, on average, $13.17 monthly for a Medicare Advantage plan with prescription drug coverage. The average drug deductible is also quite low at $110.80. Plus, several hospitals throughout the state are recognized for strong performance in geriatric care, including Mayo Clinic-Jacksonville, UF Health Shands Hospital, and AdventHealth Orlando.

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State income taxes in South Carolina range from 0% to 7%, but you won't be taxed on any of your Social Security benefits. The state also offers seniors plentiful outdoor recreation, a rich history to explore, and low housing and healthcare costs. Thanks to a year-round moderate climate, you could spend your free time wandering beaches, state parks, historically significant sites, and charming small towns.

On average, a South Carolina home will cost you around $200,000, which is about 22% below the national average home price. A Medicare Advantage Prescription Drug Plan in the state costs about $15 monthly on average, and the average drug deductible is about $155. Also, MUSC Health University Medical Center in Charleston has an excellent 30-day survival rating for admitted patients aged 75 or older.

Seniors make up about 17% of South Carolina residents.

Georgia's state income tax rate ranges from 1% to 5.5%, but the state does not tax Social Security benefits. You'll also enjoy low home prices, averaging $216,314, and affordable Medicare premiums, averaging $18 monthly with prescription drug coverage. The state's Emory University Hospital at Wesley Woods is ranked 22 on U.S. News & World Report's list of best hospitals for geriatric care.

Georgia's climate can vary dramatically across the state. As you might expect, northern communities have much colder winters relative to the state's southern coastline. Seniors tend to prefer inland locales near Atlanta, such as Cumming, Decatur, and Stone Mountain. In Cumming, for example, seniors account for 20% of the city's population. The statewide senior population is lower at 13%.

Arizona has long been a preferred retiree destination, thanks to its sunny, dry climate. Like Florida, Arizona also has a huge selection of retirement communities, chock full of senior-oriented activities to keep you fit and busy.

State income tax rates in Arizona range from 2.59% to 4.54%, but you won't pay any state taxes on your Social Security income. The average monthly cost for a Medicare Advantage Prescription Drug Plan is $16.35, and the average drug deductible is less than $150. If you choose a hometown in or near Phoenix, you'll have access to the Mayo Clinic-Phoenix -- a facility that's nationally ranked for the care it provides to patients 75 and older.

The state is less competitive with respect to home prices. The average home value in Arizona is nearly $300,000, which is about 13% higher than the national average.

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Michigan charges a flat income tax rate of 4.25%, but the state does not tax Social Security income. Home values in the state are nearly 30% below national averages; you can typically buy a Michigan home for about $190,000. Medicare Advantage premiums including prescription drug coverage are on the high side, averaging $57 monthly. The average drug deductible, however, is very low at $68. The state is also home to multiple hospitals that are nationally ranked for geriatric care, including University of Michigan Hospital in Ann Arbor, Beaumont Hospital in Royal Oak, and Beaumont Hospital in Grosse Point.

Northern parts of Michigan offer many outdoor recreational activities for seniors, including pickleball, golf, and light hiking -- particularly in resort towns like Traverse City. You'll have to limit your outdoor fun to the moderate spring, summer, and fall months, though -- Michigan winters can be harsh.

Even with the cold winters, 1.6 million seniors call Michigan home.

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Despite a higher maximum income tax rate of nearly 7%, Arkansas does offer a generally low cost of living. The tax rate may be a deal breaker, though, if you're taking big distributions from your 401(k) or IRA. It's less of a factor if you're mostly reliant on Social Security, which is not taxed in Arkansas.

The state's average home value is an ultralow $141,806. Medicare Advantage premiums on plans with prescription drug coverage are also affordable, averaging $22.35 monthly. The average drug deductible on these plans is about $208.

Arkansas weather is moderate, with temperatures ranging from lows in the high 20s to highs in the low 90s. If you're an outdoor enthusiast, you'll use that weather pattern to explore the state's many lakes, golf courses, and trails. Arkansas communities that are popular with seniors include Hot Springs Village, Bella Vista, and Cherokee Village.

The state of Oklahoma does not tax Social Security benefits. As a senior resident of the state, you'll get a $10,000 deduction toward other types of taxable income, such as distributions from your retirement account. Home prices are very affordable, averaging less than $150,000. Medicare Advantage premiums including prescription drug coverage average less than $25 monthly.

Along with a low cost of living, you'll also enjoy 234 days of sunshine each year on average. Oklahoma's varied terrain is also appealing if you like to be outdoors. The state features prairies, forests, canyons, lakes, and rivers.

Seniors do tend to prefer the quieter parts of the state. For example, Grove City, a small lakeside town in northeastern Oklahoma, has a high senior population. If you prefer a city vibe, look into Tulsa or Oklahoma City, or the suburbs surrounding these metro areas.

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Retire to Texas and you'll enjoy no state income tax, affordable home prices, good healthcare, and efficient Medicare premiums. The average home value is about 15% below the national average at $224,065. Settle down near Dallas or Houston and you'll have access to a nationally ranked hospital, too. UT Southwestern Medical Center in Dallas and Houston Methodist Hospital in Houston are ranked 25 and 26, respectively, on U.S. News & World Report's list of best U.S. hospitals for geriatrics. Average premiums for a Medicare Advantage plan with prescription drug coverage is about $20 monthly, while the average drug deductible is less than $200.

One downside of Texas living can be the climate, which is extreme in some parts of the state. Summers can be hot and humid, and the threat of hurricanes looms from August through November. If you prefer a moderate climate, look into communities in northern Texas, near Amarillo.

The state tax rates in Alabama range from 2% to 5%. Most taxpayers will have an effective tax rate closer to 5%, since this applies to income over $3,000 or $6,000, depending on whether you're a single or married filer. Your Social Security income, however, is not taxed.

Alabama may be a good fit if your top priorities are low home prices and a moderate climate. The average home value is less than $160,000, some $100,000 below the national average. Medicare Advantage premiums are also affordable. You'll spend about $22 monthly for a plan with prescription drug coverage and and an average drug deductible of $208.

If you land near Birmingham, you will be close to University of Alabama at Birmingham Hospital -- a facility that's nationally ranked for geriatric care.

Nearly 800,000 seniors live in Alabama, making up 16% of the state's population.

Nevada has no state income tax, which is attractive no matter how your retirement income is structured. Healthcare is also affordable. On average, a Medicare Advantage Plan with prescription drug benefits costs less than $12 monthly. Nevada home prices, however, are less affordable. The state has the highest average home value of any state on this list, at $320,203.

If you like the Nevada tax structure, you can probably find a climate and community vibe you love in the state. Northern communities offer four seasons, with snowy winters and sunny summers. In the south end of Nevada, near Las Vegas, you'll find hot, dry summers and moderate winters. These southern cities are more popular with seniors. Mesquite, Pahrump, and Laughlin all have high senior populations.

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Deciding where to retire is a very personal decision. Know that the cheapest isn't always the best. Cost of living is a major factor, but quality of life is equally important. If you need a warm weather climate that's within driving distance to your grandkids in Nashville, for example, then Michigan isn't an option. But northern Georgia or Alabama might fit the bill.

In other words, choose the locale that feels right, even if the costs are slightly higher. You only get one retirement in life -- you might as well make the most of it.

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