Looking to make a big move for your golden years? It’s not just about the location itself: Long-term affordability should also be taken into consideration. Living costs (housing, groceries, transportation, and utilities), taxes, and Social Security payments all factor in as part of a destination’s desirability. The Motley Fool, an investment advice company, took this into account when curating a list of each state’s affordability in terms of overall costs for retirees. Find out which states cracked the top 10 most affordable states for retirement in 2026.

10. New Mexico

New Mexico has plenty of appeal for retirees, including warm and dry weather and a low cost of living, with home prices and rents that are well below the national average. The state also recently lowered taxes on retirement income, including Social Security, which means retirees who choose New Mexico can save more in the long term. On top of that, the state’s beautiful scenery, vibrant culture, and access to the outdoors promise to make your golden years more enjoyable.

9. Alabama

With approximately 18% of the state’s population being over 65, Alabama has become increasingly popular for retirees. Advantages for the senior set include a mild climate, a low cost of living, and low taxes. Most notably, state residents benefit from affordable housing costs, which are roughly 50% lower than the national average. The state income tax rate (ranging from 2% to 5%) is also lower than that of the rest of the country, and it excludes income from pensions, making it highly desirable for anyone on a fixed income.

8. Arkansas

Much of Arkansas’ appeal to retirees is due to its low cost of living. Historically, Arkansas has offered residents more affordable housing when compared to the rest of the nation, and despite a recent uptick in housing costs, real estate prices still fall considerably below the national average. The Council for Community and Economic Research also found that the cities of Jonesboro, Fayetteville, Conway, and Little Rock spent less money on food than the national average, a factor that can help retirees stretch their dollars.

7. West Virginia

Over 20% of West Virginia’s population is over the age of 65. In addition to the beautiful mountain scenery, the state’s tax breaks are popular with those on a fixed income. West Virginia is currently at the end of a three-year period of phasing out tax on Social Security income, and taxpayers will see a full exemption beginning in 2027. Although health care can be difficult to come by in the more remote regions of the state, cities like Morgantown provide lower expenses and health care accessibility for aging residents.

6. Mississippi

The Magnolia State offers affordable housing and land paired with a low cost of living, helping residents to live on less. Mississippi residents also receive considerable tax breaks, as the state does not tax Social Security income, pension benefits, and qualified IRA or 401(k) withdrawals. Although many retirees enjoy the state’s slower pace of life in more rural areas, college towns like Starkville are also sought-after due to health care access, recreational opportunities, and a sense of community.

5. Oklahoma

Oklahoma offers retirees a peaceful environment, loads of outdoor activities, and a community-oriented culture. When you pair this with affordability and a lower cost of living, it’s easy to see why Oklahoma is such an appealing destination for potential retirees. Tax breaks include an income tax exemption of up to $10,000 for retirees over 65 and no taxes on Social Security income. The best health care access in the state can be found in the bigger cities of Oklahoma City and Tulsa, while smaller towns like Norman and Lawton are ideal for retirees seeking a quieter lifestyle. 

4. Missouri

The Show-Me State’s cost of living is 8% lower than the national average, with housing in particular 18% more affordable than in the rest of the country. Depending on their lifestyle preferences, retirees can take their pick between urban accessibility in cities like Kansas City and St. Louis, scenic beauty in Lake of the Ozarks, or lively culture and educational opportunities in the college town of Columbia.

3. South Dakota

If you’re on a fixed income, South Dakota has many advantages, including a lower cost of living and no income tax. Not only is housing 12% lower than the national average, but utilities are also 15% less than what a typical American spends. And although health care costs are slightly above the national average, South Dakota maintains a robust health care system across the state, making it a solid choice for the senior set.

2. Tennessee

Tennessee is quickly becoming a go-to state for retirees. The Volunteer State offers residents several desirable tax breaks, including no income tax, no inheritance tax, and the ability to freeze the taxable income on their home. Residents also benefit from easy access to rural beauty, with the Great Smoky Mountains as their playground. Other advantages include a mild climate, a strong sense of community, and excellent culture, especially in cities like Nashville and Memphis.

1. Kansas

According to the Motley Fool, the most affordable state for retirees in 2026 is Kansas. The average cost of living in the Sunflower State is 13.5% lower than that of the rest of the country. The state’s affordable housing is beneficial for anyone on a fixed income, while the average Social Security payment covers almost half of average living expenses for seniors. Health care costs are also lower in Kansas, making the state a great choice for retirees looking to stretch their budgets.