Worst Places to Retire in the US

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Retirement brings the promise of leisurely, stress-free days. yet not all U.S. destinations provide the perfect backdrop for this chapter of your life. the latest and greatest study from WalletHub compared all 50 states across 46 key indicators, from tax rates and the cost of living to access to quality medical care and fun activities, to find the least desirable places to retire.

As you think about where you want to retire, you might want to choose a place that offers a healthy and happy retreat from the day-to-day grind. Or, maybe just somewhere to live comfortably with easy access to quality health care and lower housing costs.

Regardless of your reasons for relocating, the ten worst places to retire in 2025 typically have higher taxes and crime rates, and subpar health care facilities compared to the top retirement destinations listed in our companion article, Best Places to Retire in the U.S.

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So, before changing your address, consider carefully where you want to live (or don't want to live) before packing up your belongings.

10 worst places to retire in 2026

What are the worst states to retire to? We've highlighted the bottom 10 (even Hawaii made the list).

Swipe to scroll horizontally

Rank	State	Total Score*	Affordability	Quality of Life	Health Care
40	Oregon	46.24	43	27	24
41	New Mexico	46.18	30	44	36
42	Rhode Island	45.98	40	39	21
43	Washington	45.63	46	17	17
44	Arkansas	45.34	11	50	45
45	New York	45.34	50	12	12
46	Hawaii	45.27	49	21	11
47	Virginia	45.24	18	41	50
48	Mississippi	44.60	9	49	49
49	Oklahoma	42.59	31	48	43
50	Kentucky	41.83	34	42	47

*Rounded up or down. A rank of 1 represents the best conditions for that metric category.

The top 10 worst places to live

We're counting down the worst places to live, starting with Kentucky at #50.

50. Kentucky

Although Kentucky is known for horse racing, bourbon, bluegrass music and southern hospitality, the state is prone to various natural disasters, including floods and tornadoes. That (and other things, like humidity and pesky bugs) lands Kentucky at the bottom in 2026, where it also ended up in 2025.

Even so, a low cost of living in Kentucky — about 19% lower than the U.S. average, still sees the Bluegrass State in the 50 spot. Residents in Kentucky spend about $250 per week on food at home and $96 on eating out. In comparison, a meal at a high-end restaurant in New York City can cost upwards of $100 or more. The average home will set you back $224,468, up 1.7% over the past year.

Kentucky’s tax system generally suits retirees — there is no tax on Social Security and seniors also enjoy a sizable deduction of $31,110 per individual for state, private and military retirement plans. However, Pensions are partially taxed and 401(k) and IRA distributions are taxable. Plus, the overall quality of life and health care options are not the best.

49. Oklahoma

Oklahoma ranks near the bottom for retirement in WalletHub's study, placing it 49th overall, due to a lower quality of life and healthcare, despite having the lowest cost of living nationally. While housing is affordable, with a median home price of $214,159, these advantages are offset by limited access to quality medical facilities.

You'll also put up with extreme weather like tornadoes and severe storms, which pose safety and insurance risks and limited public transportation outside larger cities. Though taxes are relatively retiree-friendly; Social Security is exempt, partial deductions on other income and low property taxes, the overall challenges in healthcare and quality-of-life often make it less appealing for retirees seeking comfort and security compared to higher-ranked states. See our Oklahoma State Tax Guide.

48. Mississippi

Mississippi is home to vibrant cities and wide expanses of natural beauty. It also offers many opportunities for outdoor recreation or just enjoying a slower pace of life. The cost of living is approximately 12% lowerr than the national average, and the average home will only set you back $186,295.

If you like a tepid climate, then Mississippi may be the best place to retire — it is typically very humid and subtropical with hot summers and mild to warm winters. But crime is high in many areas of the state and quality healthcare is harder to come by than in most other states. Mississippi is also prone to natural disasters, such as tornadoes, which can lead to higher insurance costs, property damage and the need to find temporary housing.

47. West Virginia

West Virginia creeps into the top 10 worst places in the US to retire for a variety of reasons. The state ranks poorly for health care, ranking near the bottom for elderly health care, which combines outcomes, cost and ease of access to healthcare facilities. West Virginia won't tax your Social Security benefits, but it does tax withdrawals from 401(k) and IRA accounts and pensions, with some exclusions. The state has no estate tax.

The Mountain State's major cities are a considerable distance from each other, and you'll have to take winding routes to get there. This can make it challenging to visit friends and family, access specialty health care if needed or find cultural and entertainment options in the larger metropolitan areas.

46. Hawaii

Yes. Hawaii made the list for the worst states to retire. The Aloha State has beautiful beaches, scenic landscapes, and many activities for retirees to enjoy. The weather is warm year-round and crime is low. However, living in Hawaii can be very expensive. Groceries, housing (median values soaring above $760,000), property taxes and utilities are all very high, making it difficult if you're on a fixed income. For instance, the cost of living in paradise (Honolulu) is 71.5% higher than the U.S. average.

On a positive note, Social Security is not taxed. But 401(k) and IRA distributions are taxable. Check out our Hawaii Tax Guide. Another factor to consider is the limited public transportation options. But even if you have a car, gas prices are typically sky-high. Don't get me started about all the creepy critters like cockroaches and spiders in Hawaii.

45. New York

New York ranks near the bottom for retirement, securing the 45th position. The state is dragged down primarily by a high cost of living, which is significantly higher than the national average — often 20-30%+ in many areas. Housing is high, with median homes well over $400,000 statewide. The state also has some of the nation's highest property taxes leading to annual bills of $7,000+ on average homes.

Taxes hit retirees hard too: While Social Security is exempt, most retirement income like pensions, IRAs, and 401(k) are. See our New York Tax Guide. Other cons include harsh winters in much of the state, high urban crime in certain areas and high healthcare costs that can put a strain on fixed budgets.

44. Arkansas

Arkansas has a lower cost of living (about 19% lower) compared to many areas in the U.S., and health care, housing and groceries are all cheaper than the national average. The climate is temperate, allowing many opportunities for outdoor activities. On the downside, the state has high crime rates in many areas, including violent and property crime and a tough economy with lower education levels than many other areas of the country.

The state has many health care facilities, including major medical centers, but access to healthcare in more rural areas is limited. It is also home to the University of Arkansas for Medical Sciences, a world-class facility that provides outstanding care for retirees. Although Social Security is not taxed, pensions, 401(k) and IRA distributions are.

43. Washington

Washington state has a lot to offer, from gorgeous mountains, long coastlines and many rivers and lakes, and, of course, great spots for coffee lovers. It also has plenty of rain, up to 120 inches per year in some places, which is not ideal for retirees who might want to enjoy the outdoors year-round.

Washington does not have state income taxes, so your retirement income, including pensions, 401(k)s, and IRAs, are not taxed by the state. Property taxes are relatively low, but housing prices can be high, averaging about $585,669, according to Zillow. Washington also boasts top-tier healthcare systems, with cities like Seattle and Spokane known for their medical centers and specialized healthcare.

Besides that, everyday living expenses are sure to put a strain on a fixed retirement budget. Groceries, healthcare, utilities and transportation costs are all higher than the national average.

42. Rhode Island

Rhode Island offers beaches and scenic beauty, but the cost of living is high — 12% higher than the national average, with average monthly expenses around $8,933 for homeowners and $6,351 for renters. Buying a home in Rhode Island can also put a strain on your budget and set you back an average of $486,411. That's a 2.8% increase over the past year.

Taxes are also higher, although sales tax is lower than in many places in the U.S. (Read our Rhode Island State Tax Guide). Health care is highly rated, but the state has fewer hospitals and health care facilities compared to larger states. If you drive, get ready to be stuck in traffic no matter the time of day.

41. New Mexico

New Mexico is a popular destination for retirees for many reasons, including its warm temperatures and clean air. While it is rich in culture and boasts beautiful landscapes, before you pack your bags, you should know that crime can be high and medical facilities are sparse, especially in rural areas. That means you may need to travel long distances to access specialized care, a disadvantage for some seniors.

Overall, New Mexico has good weather with warm (sometimes very hot) summers and mild winters, but harsh weather conditions such as strong winds, dust storms and wildfires are common.

On the upside, most retirees in the state don't pay state income tax on their Social Security benefits. Taxpayers age 65 and older can deduct up to $8,000 from their taxable income, and income for residents 100 years and older is completely tax-exempt. Retirement accounts, such as 401(k)s and IRAs, are partially taxed. Social Security is taxed for single filers who earn more than $100,000 per year (more than $150,00 if married filing jointly, and pensions are also partially taxed.

40. Oregon

Oregon ranks low for retirement in the recent 2026 WalletHub study, placing it 40th overall, largely due to high costs and limited affordability. The state's cost of living is higher than the national average by about 10-13%, driven by rising housing prices, expensive healthcare, and steep state income taxes on most retirement income, including pensions, IRAs, and 401(k)s, though Social Security is exempt. Read our Oregon state tax guide. This combination can strain fixed incomes, making it tough for budget-conscious seniors.

Additional drawbacks include air quality issues from frequent wild fires in the area, rainy weather in much of the state, higher crime rates in some urban areas and limited access to specialized senior healthcare outside major cities like Portland. While Oregon offers natural beauty, outdoor activities and no estate tax, these challenges often outweigh the perks for many retirees.

The next 10 worst states for retirees

Of the ten worst states to retire to, Kentucky holds the unfortunate distinction of being No. 1. Although each of the states in the bottom 10 have redeeming qualities, these next 10 states also represent a less-than-ideal place to live for retirees.

Louisiana
Illinois
Alabama
Maryland
New Jersey
Connecticut
Texas
Tennessee
Nebraska
Vermont

Where you retire matters

It's likely there is no one perfect place to retire that matches all of your needs. If that were the case, choosing an area of the country would be simple. To find the best place that makes sense for you, carefully consider various factors such as access to healthcare, climate, taxes and how you plan to spend your well-earned free time. While you're at it, check out Best Places to Retire in the U.S., and you may discover a new (and ideal) place to live out your golden years.

For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.