Deciding where to spend retirement is one of the biggest financial choices you will ever make, and knowing the worst states to retire in the us can save you tens of thousands of dollars over a 20-year retirement.
A 2024 study from WalletHub ranked all 50 states on affordability, health care, and quality of life, and the bottom performers shared a common thread: high taxes paired with weak senior services. The problem is that most retirement guides only spotlight the best places, leaving you to discover costly downsides after you have already moved.
This article breaks down the states that consistently rank poorly, the specific factors that drag them down, and how to check any state before you commit.
Why Taxes Make Some States the Worst States to Retire in the US
Tax burden is the single most common reason a state lands among the worst states to retire in the us, because retirement income gets taxed differently almost everywhere.
Many retirees assume Social Security is untaxed at the state level, and in most states it is. But pensions, 401(k) withdrawals, and IRA distributions often trigger state income tax. A state with no income tax at all can still sting you through high property or sales taxes.
The Tax Foundation consistently reports that state and local tax burdens vary widely, and a few states collect well above the national average per capita. That gap compounds every year you live there.
Here is how the main tax levers compare across commonly flagged states:
| Factor | Why it hurts retirees | Action to take |
|---|---|---|
| State income tax on withdrawals | Reduces spendable retirement income | Check if pensions/IRA withdrawals are taxed |
| Property tax rate | Fixed cost that rises with home values | Request the effective rate for your target county |
| Sales tax on essentials | Hits everyday budgets | Confirm whether groceries and medicine are exempt |
| Estate or inheritance tax | Cuts what you leave to heirs | Review the state's exemption threshold |
A practical step: run your expected annual withdrawal through each state's revenue department calculator before you visit a realtor.
Health Care Costs and the States That Fall Short
Health care quality and cost are the second major driver, and several states rank poorly on both measures at once.
Rural hospital closures have accelerated since 2010, according to tracking by the UNC Cecil G. Sheps Center, which documents dozens of closures nationwide. States with large rural populations often have fewer specialists and longer travel times to care.
Medicare Advantage availability and Medicare Supplement pricing also vary by state and even by ZIP code. A state that looks cheap on paper can cost more once you factor in prescription costs and out-of-pocket maximums.
- Check the number of primary care physicians per capita in your target county
- Confirm the nearest hospital with cardiology and oncology services
- Compare Medicare Supplement premiums for your age bracket in each state
How to apply this: Use the Medicare Plan Finder to compare drug and Advantage plan costs by ZIP code before you decide a state is affordable.
Health care quality and cost both drag down the worst states to retire in the US, especially where rural hospitals have closed since 2010.
Several worst states to retire in the US pair elevated property crime with thin senior support services, a combination that raises daily safety concerns.
States With High Crime and Weak Senior Services
Safety and senior support services round out the picture, and a handful of states rank near the bottom on both.
Property crime rates vary dramatically by state, and the FBI Crime Data Explorer lets you pull actual reported figures rather than relying on headlines. States with elevated violent crime in urban centers often get flagged in retirement rankings even when suburban and rural areas are calm.
Beyond crime, look at elder-care infrastructure. States with long waiting lists for home-and-community-based services under Medicaid leave families to fill the gap privately. That can mean thousands per year in out-of-pocket care costs.
Consider a scenario: a retiree moves for low housing costs but discovers the nearest memory-care facility is 90 minutes away. The savings evaporate fast once family travel and private care enter the budget.
How to apply this: Call your target state's Area Agency on Aging and ask about current wait times for in-home support before you move.
Because rankings rely on averages, verify local conditions yourself before trusting any list of the worst states to retire in the US.
Affordable Doesn't Mean Comfortable: The Hidden Cost Trap
Some states appear on "cheapest places to retire" lists yet still rank among the worst states to retire in the us once quality-of-life factors are included.
Low housing costs often signal weaker local economies, fewer health care options, and limited public services. A state can be genuinely affordable and still be a poor fit if you need regular medical care or want an active social life.
Climate is another underrated factor. States with extreme heat, humidity, or frequent severe weather events drive up insurance and utility costs. Homeowners insurance premiums in hurricane- and wildfire-prone states have climbed sharply in recent years.
The Insurance Information Institute notes that catastrophe-prone states carry materially higher average premiums, which many retirement calculators ignore entirely.
- Add insurance premiums to your cost-of-living math
- Check average summer and winter utility bills, not just home prices
- Confirm whether the state has a state income tax credit for seniors
How to apply this: Build a full annual budget that includes insurance, utilities, and health care, then compare it across your top three states.
How to Verify Any State Before You Commit
A state that ranks poorly overall can still work for you, and the reverse is also true, so verification matters more than any single ranking.
Rankings use averages, and averages hide local variation. A state with a poor overall score may have a specific county with excellent hospitals, low crime, and reasonable taxes. The key is to test the specific place you plan to live rather than the state as a whole.
Here is a checklist to run before any move:
- Pull property tax records for the exact parcel you are considering
- Compare Medicare plan options and premiums by ZIP code
- Review FBI crime data for the specific city or county
- Confirm state treatment of your pension, IRA, and Social Security
- Visit in the worst season, not the best one
How to apply this: Spend a week in your target area during peak summer or winter, then run the numbers again with real utility and insurance quotes.
The worst states to retire in the US for taxes typically hit pension and IRA withdrawals while adding high property levies on top.
Frequently Asked Questions About worst states to retire in the us
What are the worst states to retire in the us for taxes specifically?
States that tax pension and IRA withdrawals while also carrying high property taxes tend to rank worst for retirement income. A few states also levy estate or inheritance taxes, which can shrink what you leave to family. Check your specific income sources against each state's revenue department guidance before assuming a state is tax-friendly for your situation.
Even the worst states to retire in the US often contain individual towns with strong hospitals and vibrant senior communities.
Do the worst states to retire in the us still have good retirement communities?
Yes. Even states that rank poorly overall often have specific towns with excellent senior communities, strong hospitals, and active social programs. The state-level ranking reflects averages, and a well-chosen community can outweigh a poor state score. Visit and research the specific town rather than judging the entire state by its ranking.
Social Security taxation matters less, since most states exempt benefits, though a few of the worst states to retire in the US tax some income above set thresholds.
How does Social Security taxation affect the worst states to retire in the us?
Most states do not tax Social Security benefits, so this factor is less decisive than pension and IRA taxation. However, a minority of states do tax some Social Security income above certain thresholds. Confirm your state's rules directly with its department of revenue, since the rules can change between legislative sessions.
A low-cost state can still land among the worst states to retire in the US when affordability comes at the expense of specialists and senior services.
Can a state be affordable and still rank as one of the worst states to retire in the us?
Absolutely. Low housing costs often come with trade-offs like fewer specialists, longer emergency response times, and weaker senior services. Affordability is only one pillar of a good retirement location. Balance cost savings against access to health care, safety, and social connection before you commit to a move.
Lists of the worst states to retire in the US shift annually as tax laws, insurance markets, and health care access change.
How often do rankings of the worst states to retire in the us change?
Rankings shift year to year as tax laws, insurance markets, and health care access evolve. A state that ranked poorly five years ago may have improved, and vice versa. Treat any list as a starting point and re-verify current tax and Medicare data before making a final decision.
Conclusion
Choosing where to retire means looking past headlines and checking the numbers that actually affect your budget and wellbeing. Here are the key takeaways:
- Tax treatment of pensions and IRA withdrawals drives most state rankings
- Health care access and rural hospital closures matter as much as cost
- Safety and senior support services vary widely by county, not just state
- Always verify a specific town rather than relying on state averages
Start today by building a full annual budget for your top three candidate states, including insurance, utilities, and health care. Cross-check each against the data sources linked above, and you will avoid the worst states to retire in the us for your own situation.
