Wyoming Tops List as Best State to Retire in 2026, New Jersey Ranks Worst
CHEYENNE, Wyo. — As millions of Americans approach retirement age, a new analysis by senior care company CareScout has identified Wyoming as the best state to retire in 2026, while New Jersey ranks as the worst. The study examined affordability, healthcare access, and overall quality of life across all 50 states, reflecting growing concerns about the rising costs and health challenges faced by older adults.
The U.S. Census Bureau reports that the population aged 65 and older reached approximately 61.2 million in 2024, a demographic shift that is reshaping retirement trends nationwide. With life expectancy increasing—data from the Centers for Disease Control and Prevention shows someone turning 65 today can expect to live nearly two more decades—decisions about where to retire are becoming increasingly complex.
Wyoming’s top ranking is attributed largely to its favorable tax environment, including the absence of a personal income tax, and strong health indicators among its older residents. CareScout noted, however, that retirees should weigh tradeoffs such as Wyoming’s colder climate and relative scarcity of healthcare providers. Other states that scored highly include New Hampshire, Vermont, Montana, and South Dakota, all recognized for their balanced combination of affordability, tax policies, and quality of life. New Hampshire, for example, benefits from no personal income tax and ranks among the highest in average Social Security income.
Conversely, New Jersey was identified as the least retirement-friendly state, burdened by one of the nation’s highest personal income tax rates and a steep cost of living. Despite offering the highest average Social Security income in the country, the state struggles with poor health outcomes for older adults, a critical factor in retirement quality. Massachusetts, New York, Alabama, and Mississippi also ranked near the bottom, with Massachusetts and New York penalized for high living costs and tax burdens, while Alabama and Mississippi face challenges related to aging health outcomes and limited access to recreational and cultural resources.
This analysis comes amid growing concerns over healthcare affordability and access for seniors, issues underscored by data from the Centers for Medicare & Medicaid Services. Rising costs for daily necessities and medical care continue to influence where retirees can realistically afford to live.
Experts emphasize that as the senior population grows, states that offer a combination of financial relief and quality healthcare infrastructure will become increasingly attractive. The study’s findings underscore the importance of tax policy and healthcare access in shaping retirement destinations.
For retirees and those planning ahead, resources such as the AARP provide valuable guidance on navigating these decisions, including detailed information on state-by-state healthcare quality and cost of living. Meanwhile, the Social Security Administration continues to be a key source of income for many retirees, making states with favorable tax treatment of Social Security benefits particularly appealing.
As Americans live longer and healthcare costs rise, the choice of where to retire is becoming more consequential than ever. Wyoming’s combination of tax advantages and health outcomes offers a compelling option, while states like New Jersey highlight the challenges posed by high taxes and living expenses. This evolving landscape will likely continue to influence retirement patterns in the years ahead.
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