The Only 4 States Where Retirees on Fixed Incomes Can Still Get By

If you're a retiree living on a fixed income, whether from a retirement plan or Social Security checks (or both), you may be interested in knowing the most affordable places to live in the United States.

Some states have lower costs of living than others, especially when it comes to housing and other lifestyle expenses. Some states also offer more tax benefits to retirees. However, there can be some drawbacks depending on where you live, too. 

Here's more information about states that are still affordable, even if you live on a lower, fixed income.

The average Social Security check in 2026

In 2026, the average Social Security check is just over $2,000, according to the Social Security Administration. In any state, it would be challenging to pay for expenses on that income, but married couples may be able to, depending on their spending patterns, expenses, and the amount they receive on their Social Security checks. 

Your check may also go farther if you live in a state with friendlier tax laws towards retirees. Here are some examples.

Oklahoma is the most affordable state in the U.S.

According to research from MERIC, an organization that publishes cost-of-living data, Oklahoma is the most affordable state in the country. It scores an 83 on the affordability index (with 100 representing the U.S. average). 

Its housing costs were even lower than that, coming in at 65.1. According to the U.S. Census, the state has a low median gross rent, at just over $1,000, and a median value of owner-occupied housing at $199,800. 

Finally, Oklahoma also allows retirees to deduct up to $10,000 of income from retirement plans per taxpayer.

The downside of living in Oklahoma is that it has poor rankings in terms of its healthcare system.

Alabama has a low cost of living and retiree tax benefits

According to MERIC data, Alabama has the second-lowest cost-of-living score, behind Oklahoma. Alabama scored an 86 on its overall index and a 68.6 on its housing index. According to US Census data, median rent in Alabama is just over $1,000, and the median home value is $209,900. Also, Social Security income is exempt from state income tax.

The downside of living in Alabama is that it has one of the highest combined sales tax rates in the country at 9.46%, which is something to consider, as it affects all purchases.

Iowa has both low costs and tax perks for retirees

Iowa is another affordable state, with an index of 86.1 and a housing index of 70.6, both below the national average. Home prices and rent are also very affordable. According to the US Census, the median gross rent in Iowa is $972, and the median home value is $208,000. Iowa also offers some tax perks to retirees. For example, retirees do not have to add Social Security benefits to their state taxable income.

The downside of living in Iowa is that property taxes are higher than some other states on this list, like Oklahoma, but they're still lower than many other states. That's why it's important for retirees to consider multiple different factors before choosing a place to live in retirement.

West Virginia has some of the lowest rents in the country

If you are a renter, consider West Virginia, as it has some of the lowest rents in the nation. According to US Census data, the median gross rent is $872, and the median home value is $162,600. Overall, West Virginia had the fourth-lowest cost of living in the United States, according to MERIC data. The overall index scored an 87, and the housing index scored a 69.9.

West Virginia also has some favorable tax laws for retirees. New as of 2026, taxpayers can deduct 100% of Social Security benefits when reporting their income to the state. The downside to West Virginia, though, is that it ranks 47 out of 50 on healthcare system performance.

Consider all your expenses when choosing a place to live

There are a few other expenses to consider if you are planning to move to a more affordable state. For example, homeowners insurance, property taxes, and your transportation costs all impact your cash flow in retirement. Additionally, if you move far away from friends and family, you may also need to factor in the cost to travel to see them.

Other tips for making retirement more affordable

If you're trying to make retirement more affordable, it's helpful to monitor and track your expenses. Also, if you have high-interest debt, especially credit card debt, work to pay it down, as minimum payments can rise quickly and make it harder to afford your retirement lifestyle.

Bottom line

If you feel like you made a few financial mistakes and don't have a large retirement nest egg, moving to one of the states above could help you lower your expenses. 

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