In this article, we will take a look at the 5 most popular states to retire in the U.S. If you want to check out our detailed analysis on social security, taxes, and COLA; you may go to 15 Most Popular States to Retire in the U.S.
5. Montana
Percentage of retirees: 19.9%
Retirees love Montana as a retirement destination due to its laid-back lifestyle, majestic natural landscapes, and reasonably affordable cost of living. The tax environment is moderately tax-friendly. There is no sales tax, while property taxes are fairly low. However, there are taxes on most forms of retirement income, as well as social security tax for people whose income is above a certain threshold. The state offers retirees a peaceful and laidback lifestyle, thanks to its low population density and sparsely populated areas. Abundant lakes, rivers, and mountains throughout the state offer vast recreation opportunities, and the state boasts some excellent healthcare facilities as well. The cost of living is 3.7% higher than the U.S. average, with some places in the state cheaper to retire to than others.
4. West Virginia
Percentage of retirees: 20.5%
West Virginia has 20.5% of seniors living in its state. The tax environment is quite friendly, with partial taxes on social security and other retirement income. Sales and property taxes are low, too. Stunning natural landscapes are a major draw for retirees, and the Appalachian Mountains serve as the perfect backdrop to the beautiful state. Retirees can stretch their retirement income living in the state, thanks to its cost of living, which is 9.7% lower than the U.S. average. The fall landscapes of West Virginia look beautiful on a long drive, and overall, retirees love it here in this state.
3. Vermont
Percentage of retirees: 20.6%
Retirees come to love the serene state of Vermont for plenty of reasons. The state has breathtaking natural landscapes, four distinct seasons, and plentiful recreational opportunities. Other factors that add to its charm include excellent healthcare, a low crime rate, good air quality, and a significant focus on environmental sustainability. The state is also revered for its farm-to-table dining, focusing on fresh, locally sourced, and organic ingredients. The cost of living in Vermont is 14.9% above the U.S. average, but many baby boomers who once came to ski fell in love and chose to retire in the state.
2. Florida
Percentage of retirees: 21.2%
No state income tax, warm temperatures, and stunning coastlines are a few reasons retirees are drawn to Florida. The state is very tax friendly, too. There is no state income tax, meaning all retirement incomes go untaxed to retirees. Property and sales taxes are close to national averages too. Beautiful beaches on the Atlantic Ocean and the Gulf of Mexico allow retirees to enjoy a beachfront living in the state. Retirees can go birdwatching, swimming, or engage in other scenic exploration. There are a vast number of retirement communities available with state-of-the-art amenities to enjoy. The cost of living is 2.3% above the national average, with some places cheaper to retire than others.
1. Maine
Percentage of retirees: 21.8%
Maine may not be entirely tax-friendly, but it is still a popular retirement destination, with 21.8% of seniors living here. The peaceful and laid-back atmosphere makes it an ideal retreat for retirees. There are charming coastal towns and villages, such as Bar Harbor, Camden, and Kennebunkport. Renowned seafood restaurants, quaint shops, and unique coastal culture can be found in the state. Plenty of outdoor opportunities, such as kayaking, bird watching, and mountain skiing, keep residents busy. The cost of living is 11% higher than the national average, and 9.2% of adults are living below the poverty level. The state also doesn’t tax social security, but other forms of retirement income can be taxed as high as 7.15%.
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