Retirees Are Leaving These States in Droves (And Going to These 6 Spots Instead)

For years, Americans have been relocating from expensive states to lower-cost alternatives. What began as a pandemic-era trend has evolved into something much more durable.

Census data, along with research from moving companies, reveal that high-cost states are among the nation's biggest "losers" for outbound movers.

For movers looking to save money in retirement, the decision increasingly comes down to dollars and cents. Here's a look at the states retirees are fleeing and where they're going instead.

1. California

California remains one of the country's largest sources of outbound migration.

According to the most recently available IRS data, California lost roughly $11.9 billion in adjusted gross income (AGI) through domestic migration while also posting the nation's largest net population decline of 254,332 residents.

Financial headwinds are a major driver. California taxes most retirement income and home prices are among the nation's highest.

2. New Jersey

New Jersey has become a familiar fixture atop outbound migration rankings.

United Van Lines reports that 62% of moves involving New Jersey in 2025 were outbound.

For many, New Jersey is a challenging financial equation. Despite excellent health care and strong public services, it also has relatively high property taxes with an elevated overall cost of living.

3. Illinois

Illinois remains a consistent net exporter of residents in recent years.

While outbound migration became somewhat more balanced during 2025, United Van Lines says Illinois continues experiencing more departures than arrivals. Retirees often point to high property and income taxes and skyrocketing housing costs.

Departing residents are looking for areas where housing, insurance premiums, and taxes consume a smaller share of their retirement income.

4. Connecticut

Connecticut faces similar challenges as New Jersey and Illinois residents.

Although the state consistently ranks highly for health care and overall quality of life, moveBuddha found Connecticut recorded just 0.57 inbound moves for every outbound move so far in 2026, down from 0.67 the previous year.

Relatively high taxes, expensive housing, and rising insurance costs make it increasingly difficult for retirement savings to stretch as far as they once did.

5. Louisiana

Louisiana continues to see significant outbound migration.

Atlas Van Lines' 2025 study found 66% of Louisiana moves were outbound, making it the study's top outbound migration state.

Housing affordability is a major factor. Home insurance costs are elevated in hurricane-prone regions, and many homeowners are underwater on their mortgages. In the third quarter of 2025, 14 Louisiana parishes (counties) ranked among the nation's top 50 for seriously underwater mortgages.

1. Florida

Florida still dominates retirement migration, even as rising costs have slowed momentum.

According to an analysis of Census Bureau data, Florida posted a net gain of 44,504 retirees in 2025 after 143,378 adults age 60 and older moved in while 98,874 moved out.

It's still the nation's top retirement destination, but today's retirees face a different Florida than those who relocated a decade ago. Home prices remain elevated, and homeowner insurance costs dearly. Bankrate's August 2025 True Cost of Home Insurance report estimated Florida's average annual premium (for $300,000 in dwelling coverage) at $5,735.

Climate concerns, congestion, and rising everyday expenses have caused some retirees to reconsider Florida. Even so, no other state attracts as many older Americans.

2. South Carolina

If Florida remains the retirement king, South Carolina is among its fastest-rising challengers.

According to moveBuddha, South Carolina posted a 2.02 inbound-to-outbound move ratio so far in 2026, while the Myrtle Beach area recorded a stronger 2.60 arrivals for every departure.

Affordability plays a major role. South Carolina offers comparatively affordable housing, lower property taxes, and more manageable living costs. More than one-third of inbound movers were over age 65, while another 32.2% were between ages 55 and 64.

3. Texas

Texas remains one of the country's biggest migration draws, but its explosive boom has cooled. Its inbound-to-outbound migration ratio peaked at 1.68 in 2021 but had fallen to roughly 1.2 in the first quarter of 2026, leaving it ranked 17th nationally among inbound states, according to moveBuddha.

Even with slowing growth, Texas continues to appeal to retirees thanks to its lack of a state income tax and affordable market pockets of housing.

4. North Carolina

North Carolina is one of the country's strongest inbound migration magnets.

United Van Lines reported that 57.8% of moves to North Carolina were inbound during 2025, reflecting broad-based demand that has outlasted the pandemic-era spike. Retirees are drawn by a combination of relatively affordable housing, mild weather, growing health care systems, and scenic landscapes.

5. Tennessee

Tennessee is also a popular retirement destination.

A North American Moving Services analysis found Tennessee has been a top inbound migration state every year since 2020. Nashville, in particular, attracts newcomers looking for lower costs while in an area with strong economic growth and urban amenities.

Additionally, the state's lack of an income tax is a major draw for fixed-income retirees.

6. Idaho

Idaho is one of the country's biggest migration success stories.

Idaho is one of the country's biggest migration success stories. MoveBuddha reported the state posted one of the nation's strongest inbound-to-outbound move ratios in 2026, ranking second among all states as of mid-year, driven largely by households leaving more expensive nearby states such as California and Washington.

Although Idaho is not the same bargain it was several years ago, many retirees still find it significantly more affordable than states they're fleeing. The state offers outdoor recreation, lower taxes, and less congestion.

Bottom line

Retirement migration is more about escaping high taxes and unaffordable living than fleeing snowy climes. These cost-of-living savings meaningfully maximize your senior benefits.

The economic migration trend is only strengthening. MoveBuddha predicts Alaska, Idaho, South Carolina, Maine, and Arkansas will post the nation's strongest inbound-to-outbound migration ratios by the end of 2026, with Alaska projecting nearly 2.5 newcomers for every resident leaving.

While climate and lifestyle still matter, retirees increasingly appear to be making relocation decisions the same way they approach every other major financial choice: Following the math.