Best places to retire in the US in 2024

In a nutshell

The best place to retire in the United States will vary by person. Everyone has their own preferences as to what is important to them. These might include factors like:

• Proximity to friends and family.
• Familiarity with an area.
• Preferences in terms of recreational activities.
• Desired climate.
• Financial factors such as taxes, cost of living, housing costs and others.

If buying a home is part of your retirement plan, be sure to shop around for the best mortgage. You might consider lenders like Discover and Regions Bank in your search for the best mortgage in today’s market.

There have been a number of studies done regarding the best places to retire in the U.S. Here is a list of eight of the top-ranked places for retirees to consider.

Carmel, Indiana

Carmel offers a quiet suburban lifestyle, with access to the big city amenities of Indianapolis.

• Carmel’s population is 100,777.
• Carmel boasts 187 days of sunshine annually.
• The median home price is $510,233.
• While Carmel is known as a wonderful family community, 40% of its population is age 50 or over.

Carmel offers a number of options for those interested in museums and the arts. These include:

• Their own local orchestra.
• Several arts councils and theater troupes.
• A local center for the performing arts.
• A local museum.

Additionally, Carmel is home to a number of year-round activities, such as a farmer’s market, various festivals, and a German Christkindlmarkt during the holidays.

Carmel is known as a pioneer in road safety. They have been replacing traditional intersections with safer roundabouts for a number of years.

From a tax perspective, Indiana is rated as moderately tax-friendly toward retirees.

• Social Security is not taxed.
• Property taxes are relatively low, and there is an over 65 deduction that some homeowners may qualify for.
• On the negative side, retirees will pay state income taxes on withdrawals from retirement accounts like IRAs.
• Income from public and private pensions is fully taxed as well.
• The state sales tax is on the high side at 7%. There are exemptions for items like food, prescription drugs, and certain medical expenses.
• There are no inheritance or estate taxes.

Franklin, Tennessee

Franklin offers a small-town lifestyle, with access to the amenities of Nashville, only about 30 miles away.

• Franklin’s population is 85,469.
• Carmel boasts 208 days of sunshine annually.
• The median home price is $765,000.
• About 37% of the population is aged 50 or over.

Franklin offers amenities for a wide range of amenities, including several golf clubs, a number of museums and several historical sites to visit. Franklin’s historical district is a popular destination for residents and visitors with a wide array of shops, eateries, and tap houses.

Franklin is home to a local theater that offers a wide variety of live performances during the year. There are a number of historical sites in the area as well.

From a tax perspective, Tennessee is rated as tax-friendly toward retirees.

• There is no state income tax in Tennessee.
• Social Security is not taxed.
• Withdrawals from retirement accounts like IRAs and 401(k)s are not subject to state income taxes.
• Withdrawals from public and private pensions are not subject to state income taxes.
• Property taxes are relatively low.
• There are no inheritance or estate taxes.
• On the negative side, the state has a very high state sales tax of 7%, with some municipalities having an additional local sales tax as high as 2.75%. Prescription drugs are not subject to the state sales taxes, groceries are in part.

Boca Raton, Florida

Boca Raton offers beachside living and a population where over half of the residents are aged 50 or over.

• Boca Raton’s population is 95,787.
• Boca Raton boasts 234 days of sunshine annually.
• The median home price is $531,667.
• About 51% of the population is aged 50 or over.

Boca offers over 40 parks, 1,600 acres of recreational space and five straight miles of beaches. A large supply of luxury real estate and excellent healthcare facilities also help make this an appealing spot for retirees. Boca also has a major airport that makes traveling to and from easy, especially for retirees who maintain ties to former homes in the north. It is serviced by several major airlines.

Boca offers a lot of opportunities for retirees to get out and participate in the town’s activities. There is a week-long festival of the arts and a holiday boat parade each year. There are several aquariums in the area and opportunities to observe sea animals, such as sea turtles, at local facilities.

From a tax perspective, Florida is rated as very tax-friendly toward retirees.

• There is no state income tax in Florida.
• Social Security benefits are not taxed.
• Withdrawals from retirement accounts like IRAs and 401(k)s are not subject to state income taxes.
• Income from public and private pensions is not subject to state income taxes.
• Property taxes are not especially high, just slightly below the overall U.S. average.
• There are no inheritance or estate taxes.
• State sales taxes are about in line with national averages. Both groceries and medicine are exempt, these are usually major expense items for seniors.

Lower Merion, Pennsylvania

• Lower Merion’s population is 59,578.
• Lower Merion boasts 205 days of sunshine annually.
• The median home price is $396,833.
• About 44% of the population is aged 50 or over.

Lower Merion is steeped in history. The town boasts three unique historical districts, over a dozen nationally recognized historical landmarks, and two historical societies. One of those societies is dedicated solely to stopping horse thieves.

Beyond historical sites, the area offers a number of cultural and outdoor attractions. There are a number of parks, arboretums, botanic gardens, and duck ponds to visit. There are a number of courses in the area for those who enjoy golf.

Philadelphia, and all that it has to offer, is close by. The area is home to several excellent medical facilities as well.

From a tax perspective, Pennsylvania is rated as tax-friendly toward retirees.

• Social Security benefits are not taxed.
• Withdrawals from retirement accounts like IRAs and 401(k)s are not subject to state income taxes.
• Income from public and private pensions is not subject to state income taxes.
• Property taxes are higher than average, but the state does offer a property tax relief program that can help lower property taxes for some seniors.
• There are no inheritance or estate taxes.
• State sales taxes are a bit on the high side. Clothing, groceries, prescription drugs, and home heating fuels are exempt, these are usually major expense items for seniors.

Liberty, Missouri

Liberty is a suburb of Kansas City.

• Liberty’s population is 30,337.
• Liberty boasts 216 days of sunshine annually.
• The median home price is $286,667.
• About 37% of the population is aged 50 or over.

Liberty offers a low-cost option for retirees near a big city. The average home price is almost $145,000 lower than the national average home price.

The cost of entertainment and recreation in Liberty tends to be low as well. Whether a play at the Liberty Performing Arts Center, a trolley ride of Liberty’s historic downtown, or taking in a sporting event at William Jewell College, there are a lot of fun things to do in Liberty that will not break the budget.

For those who enjoy the outdoors, there is the 53-acre Martha Lafite Thompson Nature Sanctuary. The proximity of Kansas City is convenient for those seeking the amenities of a major city, including professional sporting events and a taste of the world-famous Kansas City barbeque.

From a tax perspective, Missouri is rated as moderately tax-friendly toward retirees.

• Social Security benefits are partially taxed. It is fully exempt from taxes for seniors filing as single with an income of $85,000 or less. The exemption is $100,000 for those filing married and joint.
• Withdrawals from retirement accounts like IRAs and 401(k)s are subject to state income taxes, though there is a partial exemption for lower-income seniors.
• Income from public and private pensions is subject to state income taxes, though there is a partial exemption for most public pensions.
• Property taxes are a bit lower than the national average. The actual cost of property taxes will be low on a dollar outlay basis as property values are relatively low in Missouri.
• There are no inheritance or estate taxes.
• State sales taxes are a bit on the high side. Taxes on gasoline, cigarettes, and alcohol are, however, among the lowest in the country.

Salem, New Hampshire

Salem is a suburb north of Boston.

• Salem’s population is 28,776.
• Salem boasts 201 days of sunshine annually.
• The median home price is $693,500.
• About 46% of the population is aged 50 or over.

There are a variety of entertainment options in and around Salem. There are three golf courses local to Salem. There is a local casino for those interested in that. And there is an amusement park that dates back to 1902 for when the kids and grandkids visit.

For those who enjoy music, the New Hampshire Philharmonic Orchestra is based in Salem and plays there throughout the year. For those who enjoy the outdoors, the Salem Town Forest offers a wealth of bike and hiking trails. Salem even has its own version of Stonehenge for those who don’t want to travel to see the real one.

For those who want to take advantage of the history and big city amenities of Boston, it is only about a 45-minute drive from Salem.

From a tax perspective, New Hampshire is rated as very tax-friendly toward retirees.

• Social Security benefits are exempt from taxes.
• Withdrawals from retirement accounts like IRAs and 401(k)s are not subject to state income taxes.
• Income from public and private pensions is not subject to state income taxes.
• Property taxes are higher than the national average. There is a partial rebate available for some property owners depending on their income and the value of their property.
• New Hampshire does not have a general sales tax, but there are “sin taxes” on items like alcoholic beverages and cigarettes.

Eagle, Idaho

Eagle is a suburb of Boise, Idaho.

• Eagle’s population is 32,100.
• Eagle boasts 209 days of sunshine annually.
• The median home price is $781,667.
• About 41% of the population is aged 50 or over.

Eagle is an ideal spot for retirees who want to maintain an active lifestyle in retirement. There is a nearby 545-acre state park along with 133 miles of trails, plus a river that is ideal for swimming, fishing, and kayaking.

Located at the foot of the Boise Mountains, access to hiking and skiing is nearby as well. There is a local bike park and an arboretum right in town as well.

There are many city events during the year. The walkable downtown area offers a number of options for shopping and dining as well. The Eagle Senior Center offers a variety of events and activities where seniors can connect as well.

From a tax perspective, Idaho is rated as tax-friendly toward retirees.

• Social Security benefits are exempt from taxes.
• Withdrawals from retirement accounts like IRAs and 401(k)s are, however, fully subject to state income taxes.
• Income from public pensions and private pensions are fully taxed, though income from a public pension may be partially exempted from state income taxes depending upon your circumstances.
• Property taxes are relatively low compared to the national average.
• The sales tax rate in Idaho is lower than the national average. Only a couple of tourist-oriented cities tack on a local sales tax to the statewide rate.

Cedar Park, Texas

Cedar Park is a suburb of Austin, the Texas state capitol and a growing, bustling city. In fact the population of Cedar Park has increased by 44% over the past decade.

• Cedar Park’s population is 78,693.
• Cedar Park boasts 229 days of sunshine annually.
• The median home price is $487,333.
• About 30% of the population is aged 50 or over.

While Austin is very accessible, there is plenty of activity right there in Cedar Park for retirees as well. There is a main street sculpture garden right in town. There is a minor league hockey team and an NBA G-League team located there.

There is a local park with a 38-acre lake. The park offers boat rentals, nature trails, and volleyball courts. There is a dog park there as well.

From a tax perspective, Texas is rated as tax-friendly toward retirees.

• There is no state income tax in Texas.
• Social Security benefits are exempt from taxes.
• Withdrawals from retirement accounts like IRAs and 401(k)s are also not subject to state income taxes.
• There is no inheritance or estate tax in Texas.
• Income from public and private pensions is exempt from state income tax.
• Offsetting these other tax benefits, property taxes are relatively high compared to the national average.
• The sales tax rate in Texas is on the high side, some municipalities add on their own sales tax as well. Groceries, prescription drugs, and over-the-counter medicines are exempt from the state sales tax.

The eight spots listed here are from the most recent Money Magazine list of top spots for retirees. These come from a list that was culled down to about 1,300 spots to consider based on factors such as:

• A lower-than-average crime rate.
• Racial diversity that is at least as favorable as the rest of the respective state’s.
• Quality of life.
• Cost of living.
• Health and safety amenities.

The AP Buyline roundup

As you look to retire, where you spend your retirement can play a role in your overall happiness. These eight spots might be a good starting point for your search.