Retirees Are Leaving These High-Cost States in Droves (And Moving to These 5 Spots Instead)

A HireAHelper analysis published in 2026 shows that more than 2.1 million Americans aged 65 and over moved in the last year. Nearly one in five crossed state lines entirely.

The pattern is consistent. Many retirees are leaving high-tax, high-cost states in the Northeast and West, and resettling in the Southeast and Sun Belt, where income taxes are lower and housing is more affordable. Yet the map isn't as simple as "flee the cold, move to Florida" anymore. Even the country's traditional retirement destination is showing some cracks.

While trends are relevant when making your own retirement plan, you need to see where your numbers fit. To help you do that, here's where retirees are leaving, where they're headed, and why.

The states the retirees are leaving

The states below have long been both highly sought after and unaffordable. In the long term, the heavy tax burden and high everyday costs drive away even retirees with resilient finances.

California

According to the most recent IRS migration data, California experienced the nation's largest net population decline: a loss of 100,397 residents. In addition, roughly $11.9 billion in adjusted gross income left the state through domestic migration.

Steep income tax rates that climb into double digits, home values that dwarf the national median, and homeowners insurance that's grown scarce and expensive amid wildfire risk are pushing retirees toward Nevada, Arizona, and Texas.

New York

In New York, high combined state and local income taxes, steep property taxes in the suburbs and on Long Island, and an overall cost of living well above average continue to eat into fixed retirement incomes.

The state is one of the biggest sources of outbound retirees nationally. The HireAHelper study found that it was the third-largest contributor of new arrivals to South Carolina in 2025, sending more than 1,000 retirees there alone.

New Jersey

Similar to New York, New Jersey has ranked among the most heavily outbound states for several consecutive years, driven largely by property tax bills that are among the highest in the country, layered on top of state tax on retirement account withdrawals.

Rising homeowners and auto insurance premiums are adding further pressure for retirees on fixed incomes.

Illinois

Illinois recorded 13,808 outbound interstate moves among retirement-age adults in 2025, the eighth-highest total nationally by volume of older-adult exits.

The state's substantial unfunded pension liability increasingly falls on current taxpayers. It's also been ranked among the least tax-friendly states for middle-class households. That combination keeps sending retirees toward lower-cost neighboring and Southern states.

Massachusetts

Despite consistently strong health care and quality-of-life rankings, Massachusetts's high taxes, expensive housing, and climbing insurance costs are making it harder for retirement savings to go the distance.

The state lost 2,453 retirement-age adults in 2025, ranking fourth-highest in net loss nationally.

The common thread

In all five of these states, it's rarely a single cost that drives the decision. Income and property taxes add to home prices above the national median, and are then compounded by insurance premiums. Homeowners, auto, and sometimes flood insurance have climbed sharply in the past few years.

For a retiree living on a fixed income, it's a combination that could easily prompt a move elsewhere.

Where retirees are going instead

For decades, the default answer was Florida. However, it's no longer this simple. The HireAHelper study found that Florida still drew more retirees than any other state in 2025 (45,696 inbound moves), but it also logged more outbound moves than any other state (44,881). The net gain: just 815, thin enough to knock Florida out of the top 10 states for net retiree migration entirely.

Home insurance is a major culprit. Insurify's 2026 report put Florida's average annual premium at roughly $8,292 in 2025, up sharply year over year and nearly triple the national average. A growing wave of "halfback" retirees is now settling partway between the Northeast and Florida, which helps explain much of the growth below.

South Carolina

South Carolina experienced the highest net gain of retirees in the U.S., at 5,427. The state drew heavily from North Carolina, Florida, New York, Georgia, and Pennsylvania.

South Carolina's appeal? A full exemption of Social Security income, low property taxes, and a mix of coastal and upstate communities.

Texas

No state income tax remains Texas's headline pitch, drawing retirees especially from California, Florida, and Ohio. Access to quality health care doesn't hurt. On the downside, high property taxes are a deterrent. Housing costs have also climbed in recent years, but they remain well below coastal markets.

Texas had a net gain of 5,156 retirees in 2025.

North Carolina

North Carolina's flat income tax dropped to 3.99% for 2026, and Social Security benefits aren't taxed at the state level.

The state added more than 3,000 retirees in 2025, but roughly two-thirds headed further south to South Carolina for even lower costs.

Tennessee

A darling of halfback retirees, Tennessee has no income tax. Its housing prices are moderate, and the cost of living is more affordable than in Florida.

Mountain and Nashville-area appeal made the state one of the fastest-growing retirement destinations in the Southeast.

Arizona

Arizona housing prices have been growing, and urban sprawl is becoming a problem, but it's still a more affordable destination for Californians priced out of their home state.

It pairs a low, flat income tax with dry, warm winters and retirement-community infrastructure that rivals Florida's.

Bottom line

Migration figures change each year, and one state posting a shrinking net gain (like Florida) isn't necessarily bad for your financial fitness in retirement. It may just mean that some households may benefit from a different market. Likewise, a destination's lower costs today may come with tradeoffs of its own, from thinner health care infrastructure in fast-growing areas to storm exposure or property taxes that creep up as home values rise with demand.

Before following the crowd, it's worth running your own numbers on state and local taxes, housing costs, insurance premiums, health care access, and distance from loved ones. What works for the guy next door may not work for you. Consider discussing your specific situation with a financial advisor before making a move.

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