These states rank as the best places to retire in 2026, data suggests

With nearly two-thirds of non-retired adults saying their retirement savings are not on track, where Americans choose to spend their later years could have a major impact on their financial security.

A new analysis from WalletHub highlights how much location matters in retirement, comparing all 50 states across 46 measures of retirement-friendliness. 

The study examined a wide range of factors, including tax policies, cost of living and housing affordability, as well as access to quality health care, recreation, and other lifestyle considerations. Together, the indicators offer a snapshot of which states may allow retirees to stretch their savings further while maintaining a higher quality of life.

Methodology:

To determine which states are most friendly to retirees, WalletHub analyzed all 50 states across three main categories: affordability, quality of life and health care.

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The comparison was based on 46 individual metrics, each weighted to reflect its importance to retirees and scored on a 100-point scale, with higher scores indicating more favorable conditions. For certain population-based measures, WalletHub adjusted the data using the square root of each state’s population to prevent small differences from disproportionately affecting the results.

Each state’s performance across the metrics was then combined into a weighted average score, which was used to produce the final rankings.

What they're saying:

"Retirement is supposed to be relaxing, but it can also be incredibly stressful given that it typically puts people on a fixed income, which may not be enough for them to live comfortably," WalletHub Chip Lupo said in an online statement. "As a result, the best states for retirees are those that have low taxes and a low cost of living to help retirees’ budgets stretch as far as possible. Having access to excellent medical care and homemaking services is also crucial, especially for people who don’t plan to retire in close proximity to their families."

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Dig deeper:

Top 5 States to Retire (2026)

1. Wyoming
2. Florida
3. South Dakota
4. Colorado
5. Minnesota

Wyoming

Wyoming ranks as the best state for retirement, driven largely by affordability and tax friendliness. The state has a relatively low cost of living for retirees, no estate or inheritance tax, and some of the lowest costs in the nation for homemaker services. 

Wyoming also scores well on safety and community, with low violent crime rates and strong protections against elder abuse. 

Financially, it has one of the lowest poverty rates among residents 65 and older and ranks high in federal aging-services funding.

Florida

Florida takes the second spot, long known as a retirement destination for its low taxes on retirees, including no income, estate or inheritance taxes. The state also receives high levels of federal funding for senior services. 

Beyond finances, Florida offers abundant recreational opportunities, from beaches to golf courses and volunteer activities, and boasts one of the lowest death rates for people 65 and older, despite a higher overall cost of living.

South Dakota

South Dakota ranks third, offering a mix of tax advantages, strong health care and a clean environment. The state has no estate or inheritance taxes, low senior poverty and hunger rates, and ranks highly for geriatric care and access to physicians. 

It also stands out for low levels of senior isolation, strong mental health outcomes, good air quality and safe drinking water.