The Best States and Towns for Retirement 2021: Tennessee and Texas Advance

Moving across state lines is one way to measure the popularity of retirement destinations. However, when we downsized and loaded the moving van, it was to the next county over where the taxes were lower, the population density was more rural and the air was cleaner. Staying in Texas was not my first choice nor that of my wife. I wanted northern Arizona and she wanted the mountains in Colorado. But ultimately, it came down to being near family, friends and keeping our support network in place.

This article states that Connecticut “is one of 13 states that tax Social Security.” That is only partially correct. For individuals with an adjusted gross income (AGI) of up to $75,000, Social Security income is not taxed by CT. For married individuals filing jointly, the AGI amount is up to $100,000 for no taxation on SS. In addition, CT state income tax on pension and annuity income is being phased out for seniors whose AGI is up to $75,000 for single filers and $100,000 for married filing jointly. For 2021, 42% of pension and annuity income is exempt from state income tax for those filers. In 2025, the exemption becomes fully phased in and 100% of pension and annuity income will from then on be exempt from state income tax for CT filers within those AGI levels.

Wow, Clyde, that is great information! Thank you. We have updated our CT mini-retirement guide based on this information as well. Much appreciated - this info was not easy to find. Incidentally, it makes the point that you really have to dig into each tax situation deeply even stronger - chances are most retired couples won't have enough AGI to pay taxes in CT, since most of their income will likely be from pensions and Social Security.

TEXAS REALLY!! Have you been to TEXAS?? Scorching hot in summer. Freezing cold in winter

Recently took a 6 week road trip to Florida in search of our retirement home. We had 3 requirements:
Gated, Near golf, Near the water (ocean or gulf). Not looking for anything over the top, 2 bed/2 bath, 2,000 sq ft max. Amelia Island, Port St Lucie, Bradenton/Sarasota.
A $400,000 model home will easily run $600,000 when the design is complete. On top of that, you also have to add the cost of the lot, which will be an additional $30-$100 thousand. Property taxes are a flat 2% in Port St Lucie, 1.5% in Sarasota. A $500,000 house could be taxed at $10,000, minus a small homestead exemption.

Do you really think people are going to choose where to retire and consider vaccination rates as a factor? You can't help yourself and get political by signaling out Texas and Florida.

Florida? Really? Did this at all factor in the whole, you know, pandemic? For the southwest, like AZ, does this factor in drought and access to life-essential water? For Oregon, does this factor in wildfires destroying their cities? Do you at all factor in the effects of climate change now and in the future? Who cares about a state being cheaper if your shorelines disappear, you get smacked by hurricanes, you get burnt out or can't breathe from wildfires and the smoke. My daughter is in NV and multiple times has had to leave this summer due to unhealthy air.
I think results don't paint a true picture of desireable places to live. I think there's going to be a migration north, away from excessive heat and towards reliable water, IMHO.

South Carolina! Yea! Moved here from Virginia. Also a wonderful state for retirement. Why, SC? Children and grandchildren. History and weather. Charleston/Summerville. Lower taxes. Really and truly excellent medical services, doctors and facilities. And I have been in medicine my whole life so I know from good medicine.
The Upstate ( Greenville, Spartanburg) the same. Great weather, beautiful mountains, top notch universities (Clemson, Furman), beautiful lakes. You can’t beat it.
Please do NOT come to South Carolina.

Two of the last three posts here are about my two states of residence: Connecticut (primary) and Soutn Carolina (vacation). As a taxpayer and real estate agent, I know well the arguments that I should be living full time in SC, with a cost of living much lower than in CT. But the pandemic, and the state by state responses to it, are a reminder that sometimes you get what you pay for. Take, for example, property taxes which, in CT, are generally about three to four times higher than in SC. But property taxes in CT largely fund schools. Depending on what ranking you look at, CT is top 5 among states in aid to education. It is also top 5 in vaccination rates and other measures of success against the pandemic. (Vermont, another expensive state, has been the most successful of the 50 states.) SC and some of its fellow southeast states (here’s to the state of Mississippi) are at the bottom in aid to education and at the top of infection rates, hospitalizations and deaths due to Covid (and now the more deadly Delta variant). Yes, we Yankees pay a lot more in taxes, but I am comforted, at a time like this, that our children understand science and relate to facts, and that the money we have spent might mean the difference between sickness and health, and life and death.

Well said, Larry.

Thank you, Larry. I live in SC. It's beautiful and less expensive than the northeast, but I'm finding other things to be much more important, such as some of the things you mentioned.

Our school board or our county commission here in Western North Carolina doesn’t understand/believe science.

Debra, same goes for Tennessee. Science is really just a detail here, hardly worth considering, by our elected state officials. The State fired the one official who was telling the truth and trying to get kids vaccinated. Yet those same elected officials are insisting on kids in classes while our hospitals are filling up with KIDS who are sick. I would never put Tennessee at the top of any list for retirement if you care for the environment, health, diversity, good schools with independent thinking and civics. However if you are looking for narrow minds, you have hit the sweet spot in Tennessee.

I would have thought that this pandemic would have put states like Texas, Tennessee, and Florida at the very bottom on anyone’s list. There is just no way anybody I know could live in places like that with so many science deniers.

Larry, yes, I agree with you. I am not happy with the taxes in New England, but watching what is going on in some southern states, makes me not even want to visit there anymore. Some things are worth paying for.

Yes. Regulations per science matters. Cheaper living in the south equals no regulations equals bad water and crappy services. The Northeast is expensive but at least we have some regulations/rules/laws that assist with public health.

Great comments!

What I love about this blog is that we get advise and comments about places that we might be interested in for retirement from people who actually live in those areas.
We have been fortunate to live all over these United States with my husband's work, and for us generally speaking, the taxes you pay in forward thinking states are well worth it. There are services provided to people by those taxes. Tennessee is by far the worst state we have ever had the misfortune to occupy. It has a BILLION dollars, no exaggeration here, in a rainy day fund. All the while the education system struggles to teach it's children with limited resources and, because the state will not join the Medicaid federal system, the state health care is just abysmal for the disadvantaged. Also, the state taxes food and gas at an exorbitant rate so the tax burden is put on the least able to afford it.
We will move as soon as it is practical, and feel fortunate to have some resources to do so.
Many thanks to all you folks who continue to contribute actual living experiences in our country.

Wow! I read a few of these comments to my husband and proudly pointed out that, this time, I didn't write them! We too have moved around the country and yes, Tennessee was the least favorite. When we first moved there, for work (2008), after our sons were out of high school in Rhode Island, we were told by several people that "education ain't a priority in Tennessee!. That has an effect on everything. It was nothing to wait up to TWO HOURS for your reg; Dr's appointment. We had to pay $$ to "join" the public library! Restaurants were all fast food chains. As soon as we could, we made a bee-line back to New England - our favorite region.
That said, I will sing the praises of Maine. Yes, house prices are crazy, even here but the people are considerate and kind and the town offers many services. Education is important and the whole town encourages the kids! I've seen a lot of road work this summer, even ours, so they are maintaining the infrastructure. Medical has been superb! Since 2018, we have only waited past our appointment time, to see a Dr. - ONE TIME! ...and they appologized profusely. Sally, you're right - sometimes you get what you pay for!!

Larry-
Touche’! I am your neighbor in Rhode Island and am so grateful to live where I do for all of the same reasons. Your comments are brilliant! You get exactly what you pay for!

IfAmerica is to survive it must quench this right wing philosophy of anti science and allowing takin an like religious BS to exists

These responses are really getting political. If you don't like Florida, Texas or Tennessee stay where you are. Those states may thank you.

Hef and Barb, never have I been happier to be in New England than during this pandemic. Rhode Island and Maine are absolutely beautiful states and the population we live with matters. I love RI for its coastline and for the proximity to Boston for the hospitals. I am a very easy 60 miles south of some of the best hospitals in the world. Saving on tax dollars is no way to pick a place to live.

Maimi-
Completely agree with you! It really is a gorgeous place to live! All the best to you!

Why must people think we care about their political opinions? Unfortunately it is one of the reasons to no longer subscribe to this newsletter.
I am glad for all who can continue to live in the Northeast. As someone who has lived in NYC for 60+ years, my husband and I can't continue and do not want to. We pay over $13,000 in RE taxes, $3,000 in water and whatever nonsensical taxes the great deBlasio can think of. Add to that normal house maintenance......We have made smart investments, sorry I am not spending my hard earned money and retirement on NYC, NYS taxes, There are other states to live in.

Is it really political, or just the shock of finding that a state you always dreamed of moving to does not value its citizen’s health, their own children’s health, clean air, clean water, or nature in general. I’ve watched my own state of PA regress, and realize I don’t belong here anymore where I was born and raised. Before the pandemic I wanted to migrate to a place with more sunshine and warmer winters, now I want to be with like-minded people who value health, science, education, and preserving the environment for our children’s future.

I seldom comment, but know TR is in a difficult position here, with a history of closely moderating discussions, especially those that become political. As long as it doesn't become nasty, the pandemic has heightened growing fissures in our society to the point where I believe it's vital to be aware of these issues, particularly before making any potential relocation. Arguments on either side can be made, including TR making it clear that theirs won't be a site for these conversations. Tricky business, but I appreciate it, thanks.

Yes, I agree, and am saddened that so many things which are not in the least political have become political, and am reading the same opinions worldwide.

Thanks to everyone for your comments on this topic and all the others at Topretirements. The discussion veered into the political when we included the section on vaccination and other Covid protection aspects, as we were afraid it would. But most everyone has been restrained and polite, only a few had to be edited (although we did our best to keep the sense of it). Thank you.
Now that we all got that off our chests, let's get back to focusing on the other aspects of what makes a place attractive (or not attractive) for retirement. That is what everyone really wants to hear about.

Surveying articles for different perspectives is always a good idea. Although some states like NY and CA usually end up on the bottom of where-to-retire lists due to cost of living, the authors of these articles sometimes have very different views.
This recent article, for example, evaluates states like TX and TN as being much less desirable for retirement: https://moneywise.com/a/ch-c/the-worst-states-for-retirement-in-2021/p-27
There are a lot of things that are important to seniors, besides the usual cost of living and crime rates. Retirees can need to research a laundry list of items, including good availability of medical care and specialists, future access to nursing homes/assisted living, entertainment or education options, probate law, and more. For many people, the security of familiar surroundings or being near family & friends shouldn't be discounted too. These "where to retire" lists are therefore just starting points in the research.

Just read an article in Apple News saying as far as climate change predictions go, the latest census data shows “Americans are moving in the wrong direction:”
“The Census Bureau’s new map of the last decade’s population trends shows big growth in the west and on the coasts – and declines in the inland east coast and Great Lakes region…overall the census data shows America’s population growth is shifting out of areas that may be the best refuges from the most extreme effects of climate change, and into many areas that are most at risk.”
https://www.theguardian.com/commentisfree/2021/aug/16/us-climate-change-americans-census-data
After the hottest most humid summer we can remember in our own hometown, spouse and I were joking that we should be moving further north, not south as previously planned! ;)

Ok, I see where my last comment might take us…and say instead after seeing the increasing droughts, coastal flooding, wildfires around the country this year, and living through hottest most humid summer I can remember where we reside currently, moving north and snowbirding south sounds like the solution for us. (At least until we’re ready for a nursing home having tropical wallpaper.)

John, do you have an article about the most popular communities in the Northeast, especially those near the coast? Maimi’s description of the merits of Rhode Island sounds appealing. I was thinking of Virginia, but a friend suggested Delaware. I’d appreciate the link if you’ve already covered this.

Here are a couple of links you might find interesting Daryl.
https://www.topretirements.com/blog/great-towns/14-great-places-to-retire-in-the-mid-atlantic-states.html/
https://www.topretirements.com/blog/great-towns/resort-areas-make-big-splash-on-2018s-most-popular-northeastern-retirement-towns.html/
Rhode Island and Delaware are both pretty interesting.

Quite a few to explore, thanks!

Daryl, there are a lot of towns on or near the coast in Rhode Island. It is quite beautiful. The pandemic has driven prices of real estate up as people from NYC have left the city and discovered the relative value. https://theculturetrip.com/north-america/usa/rhode-island/articles/the-10-most-beautiful-towns-in-rhode-island/

Thank you, Maimi, would love to see these in person!

The NY Times has a new article about New Braunfels, TX, ""Texas Town's Explosive Growth...". This city is the 3rd fastest growing Metro in the U.S. It has a lot of great insight into what this fast growing town, very popular with retirees, is like.

This article might be of interest to those of you desiring to retire out west. Water shortages are going to have a snowball effect on different industries. Farming is beginning to suffer from reduced water supplies. Hydroelectric power may come to a screeching halt.
Long article but very interesting!
https://www.cnn.com/interactive/2021/08/us/colorado-river-water-shortage/

JoeC--
He summed it up nicely, but let me add to that since I live in the Southeast, Atlanta. Crime is out of control, heat, humidity, mosquitoes, even the snakes seem to be increasing. Traffic is unbearable. It seems many of the politicians are now having charges brought against them for various issues.
I retired recently and considered the Northwest, but if taxes, politics, and Covid doesn't get you, then it seems Mother Nature also has it in for us.
Purchase anything in Dekalb County, one of the 5-metro counties, and you pay 8% at checkout, drive across the county line to Gwinnett and you pay 6%.
And nobody mentions all the sinkholes in Florida. Folks may enjoy the beach, but I don't understand why soooo many retirees want to go to Florida. It's hotter than GA and that's damn hot.
Go outside Atlanta and it seems most aren't getting the vaccine. It a whole different demographic outside the metropolitan area in politics, religion, etc.
For now, I think I'll stay put and hope to one day get to the Northwest.
Would really love to travel, but for my health's sake, I think I'll sit tight for a while, at least until more get vaccinated.
Scary world out there.

Sandra, I can suggest you look closer to home. There is perfection nowhere, but compared to Atlanta, metro areas in NC, VA and even in SC have most of what you desire. Don't judge the entire state by the "average".

This is really helpful information. But I am wondering, since it is so good, you must be related to Tom Brady!
Editor comment: Thanks Marilyn for the comparison. My family often claims "cousin Tom", but no actual relation in fact. He does appear superhuman!
John Brady