50 Best (and Worst) Cities for an Early Retirement

If you’re planning on retiring early, you’ll likely need to live in a city where your money will last 40 years or more. And unless you’re a multimillionaire, you’ll need to find a city that has low costs across a wide variety of categories, including taxes.

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To help in your quest, GOBankingRates analyzed the cost of necessities in 100 U.S. cities, comprised of the 50 largest cities and the 50 cities with the largest 65-and-older population. Taxation of Social Security benefits and/or retirement income was also considered. Based on the data, GOBankingRates determined the best and worst cities overall for early retirement. Cities are ranked in reverse order, from good to best for the top cities and from bad to worst for the bottom-ranked cities. See if your city is on the list — or if you should pack up your bags for greener pastures.

Last updated: Oct. 11, 2021

25 Best Cities for an Early Retirement

The top 25 cities for early retirement all have one thing in common: low costs. For the most part, these cities also have no taxes on Social Security benefits (except for Albuquerque, New Mexico, Kansas City, Missouri, and Wichita, Kansas), and some also have no taxes on retirement income.

Not all cities have low costs across the board — Tulsa, for example, has a high healthcare cost — but most of the cities in the top 25 have below-average costs. Here’s a look at your best options if you’re hoping to jump off the treadmill early and enjoy a long and prosperous early retirement.

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25. Hudson, Florida

2021 average home value: $236,714
Annual mortgage cost: $11,472.42
Annual grocery cost: 4,334.32
Annual healthcare cost: $6,561.31
Annual utilities cost: $3,960.80
Annual transportation cost: $4,066.14
Total annual necessities cost: $30,394.58
Taxes on Social Security benefits? No
Taxes on retirement income? No

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24. Tucson, Arizona

2021 average home value: $267,297
Annual mortgage cost: $13,620
Annual grocery cost: 4,014.82
Annual healthcare cost: $5,434.42
Annual utilities cost: $3,760.30
Annual transportation cost: $3,469.87
Total annual necessities cost: $30,299.41
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

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23. Sun City, Arizona

2021 average home value: $261,480
Annual mortgage cost: $12,012
Annual grocery cost: 4,035.84
Annual healthcare cost: $6,147.90
Annual utilities cost: $3,994.85
Annual transportation cost: $4,033.82
Total annual necessities cost: $30,2224.40
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

22. Pahrump, Nevada

2021 average home value: $285,678
Annual mortgage cost: $12,984
Annual grocery cost: 4,229.22
Annual healthcare cost: $5,681.14
Annual utilities cost: $3,854.88
Annual transportation cost: $3,423.18
Total annual necessities cost: $30,172.41
Taxes on Social Security benefits? No
Taxes on retirement income? No

21. Tavares, Florida

2021 average home value: $242,720
Annual mortgage cost: $11,760
Annual grocery cost: 4,,187.18
Annual healthcare cost: $6,387.94
Annual utilities cost: $3,919.19
Annual transportation cost: $3,746.46
Total annual necessities cost: $30,000.77
Taxes on Social Security benefits? No
Taxes on retirement income? No

20. Lady Lake, Florida

2021 average home value: $242,011
Annual mortgage cost: $11,724
Annual grocery cost: 4,237.63
Annual healthcare cost: $6,387.94
Annual utilities cost: $3,957.02
Annual transportation cost: $3,624.33
Total annual necessities cost: $29,930
Taxes on Social Security benefits? No
Taxes on retirement income? No

19. Jacksonville, Florida

2021 average home value: $238,709
Annual mortgage cost: $11,568
Annual grocery cost: 4,170.37
Annual healthcare cost: $6,474.63
Annual utilities cost: $3,888.92
Annual transportation cost: $3,642.29
Total annual necessities cost: $29,744.21
Taxes on Social Security benefits? No
Taxes on retirement income? No

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18. San Antonio, Texas

2021 average home value: $218,473
Annual mortgage cost: $12,204
Annual grocery cost: $3,842.46
Annual healthcare cost: $6,221.24
Annual utilities cost: $3,590.07
Annual transportation cost: $3,566.86
Total annual necessities cost: $29,424.62
Taxes on Social Security benefits? No
Taxes on retirement income? No

17. Columbus, Ohio

2021 average home value: $216,247
Annual mortgage cost: $11,904
Annual grocery cost: 4,153.55
Annual healthcare cost: $5,774.49
Annual utilities cost: $3,862.44
Annual transportation cost: $3,263.39
Total annual necessities cost: $28,930.88
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

16. New Orleans

2021 average home value: $243,747
Annual mortgage cost: $10,968
Annual grocery cost: 4,170.37
Annual healthcare cost: $5,681.14
Annual utilities cost: $3,302.56
Annual transportation cost: $4,759.40
Total annual necessities cost: $28,881.46
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

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15. Green Valley, Arizona

2021 average home value: $257,014
Annual mortgage cost: $11,784
Annual grocery cost: 4,035.84
Annual healthcare cost: $5,501.10
Annual utilities cost: $3,870.01
Annual transportation cost: $3,279.50
Total annual necessities cost: $28,470.45
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

14. Albuquerque

2021 average home value: $257,508
Annual mortgage cost: $11,784
Annual grocery cost: 4,035.84
Annual healthcare cost: $5,407.75
Annual utilities cost: $3,677.08
Annual transportation cost: $3,211.25
Total annual necessities cost: $28,115.91
Taxes on Social Security benefits? Yes
Taxes on retirement income? Yes

13. Zephyrhills, Florida

2021 average home value: $199,137
Annual mortgage cost: $9,648
Annual grocery cost: 4,292.28
Annual healthcare cost: $6,561.31
Annual utilities cost: $3,650.60
Annual transportation cost: $3,563.26
Total annual necessities cost: $27,715.46
Taxes on Social Security benefits? No
Taxes on retirement income? No

12. Baltimore

2021 average home value: $178,553
Annual mortgage cost: $8,916
Annual grocery cost: 4,119.92
Annual healthcare cost: $5,974.53
Annual utilities cost: $4,059.16
Annual transportation cost: $4,468.45
Total annual necessities cost: $27,538.06
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

DenisTangneyJr / Getty Images/iStockphoto

11. Hot Springs Village, Arkansas

2021 average home value: $224,718
Annual mortgage cost: $10,188
Annual grocery cost: $4,119.92
Annual healthcare cost: $6,114.56
Annual utilities cost: $3,612.77
Annual transportation cost: $3,315.42
Total annual necessities cost: $27,350.66
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

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10. Kansas City, Missouri

2021 average home value: $192,246
Annual mortgage cost: $9,600
Annual grocery cost: 4,069.47
Annual healthcare cost: $6,301.26
Annual utilities cost: $3,835.96
Annual transportation cost: $3,186.10
Total annual necessities cost: $26,992.80
Taxes on Social Security benefits? Yes
Taxes on retirement income? Yes

9. Milwaukee

2021 average home value: $160,477
Annual mortgage cost: $8,856
Annual grocery cost: 3,905.52
Annual healthcare cost: $6,921.38
Annual utilities cost: $3,828.40
Annual transportation cost: $3,437.54
Total annual necessities cost: $26,948.84
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

8. Louisville, Kentucky

2021 average home value: $207,966
Annual mortgage cost: $9,912
Annual grocery cost: $4,077.88
Annual healthcare cost: $5,734.48
Annual utilities cost: $3,510.62
Annual transportation cost: $3,706.94
Total annual necessities cost: $26,941.93
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

7. Oklahoma City, Oklahoma

2021 average home value: $165,567
Annual mortgage cost: $7,980
Annual grocery cost: $3,981.19
Annual healthcare cost: $7,814.90
Annual utilities cost: $3,673.29
Annual transportation cost: $3,430.36
Total annual necessities cost: $26,879.74
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

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6. Bella Vista, Arkansas

2021 average home value: $235,294
Annual mortgage cost: $9,372
Annual grocery cost: $4,098,90
Annual healthcare cost: $5,734.48
Annual utilities cost: $3,582.50
Annual transportation cost: $3,502.20
Total annual necessities cost: $26,290.08
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

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5. Wichita, Kansas

2021 average home value: $157,655
Annual mortgage cost: $8,304
Annual grocery cost: $3,993.80
Annual healthcare cost: $6,808.03
Annual utilities cost: $3,915.41
Annual transportation cost: $3,502.20
Total annual necessities cost: $26,909.20
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

4. El Paso, Texas

2021 average home value: $162,374
Annual mortgage cost: $9,072
Annual grocery cost: $3,867.68
Annual healthcare cost: $5,781.16
Annual utilities cost: $3,673.29
Annual transportation cost: $3,301.05
Total annual necessities cost: $25,695.18
Taxes on Social Security benefits? No
Taxes on retirement income? No

3. Indianapolis, Indiana

2021 average home value: $186,864
Annual mortgage cost: $8,964
Annual grocery cost: $3,934.94
Annual healthcare cost: $5,787.82
Annual utilities cost: $3,412.27
Annual transportation cost: $3,556.08
Total annual necessities cost: $25,655.11
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

2. Tulsa, Oklahoma

2021 average home value: $153,888
Annual mortgage cost: $7,416
Annual grocery cost: $3,989.60
Annual healthcare cost: $7,301.46
Annual utilities cost: $3,616.55
Annual transportation cost: $3,222.02
Total annual necessities cost: $25,545.63
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

1. Memphis, Tennessee

2021 average home value: $119,451
Annual mortgage cost: $3,108
Annual grocery cost: $3,922.33
Annual healthcare cost: $6,561.31
Annual utilities cost: $3,643.03
Annual transportation cost: $3,394.44
Total annual necessities cost: $20,629.11
Taxes on Social Security benefits? No
Taxes on retirement income? No

25 Worst Cities for an Early Retirement

Unfortunately for those seeking early retirement, many of the most popular destinations in America, from New York to Los Angeles to Austin, all appear on the worst cities for early retirement list. This ranking has nothing to do with the desirability of these cities but everything to do with how fast they’ll drain your bank account.

Some cities, like Seattle, actually have healthcare and utility costs that are far below the national average — along with no taxes on Social Security or retirement income. However, as is the case with many cities in the bottom 25, astronomical housing and transportation costs are enough to drag Seattle down. Here’s a look at 25 cities where you’ll need a much larger-than-average nest egg to survive early retirement.

felixmizioznikov / Getty Images/iStockphoto

25. Bonita Springs, Florida

2021 average home value: $468,878
Annual mortgage cost: $22,716
Annual grocery cost: $4,519.30
Annual healthcare cost: $7,821.56
Annual utilities cost: $3,714.91
Annual transportation cost: $3,319.01
Total annual necessities cost: $42,090.78
Taxes on Social Security benefits? No
Taxes on retirement income? No

24. Miami

2021 average home value: $458,671
Annual mortgage cost: $22,224
Annual grocery cost: $4,510.89
Annual healthcare cost: $6,587.98
Annual utilities cost: $3,612.77
Annual transportation cost: $5,190.44
Total annual necessities cost: $42,126.08
Taxes on Social Security benefits? No
Taxes on retirement income? No

23. Palm Desert, California

2021 average home value: $512,645
Annual mortgage cost: $24,840
Annual grocery cost: $4,372.16
Annual healthcare cost: $5,854.50
Annual utilities cost: $4,176.43
Annual transportation cost: $4,518.74
Total annual necessities cost: $42,244.86
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

22. Cocoa Beach, Florida

2021 average home value: $1512,645
Annual mortgage cost: $24,840
Annual grocery cost: $4,372.16
Annual healthcare cost: $6,294.59
Annual utilities cost: $3,764.09
Annual transportation cost: $3,182.51
Total annual necessities cost: $42,453.35
Taxes on Social Security benefits? No
Taxes on retirement income? No

21. Portland, Oregon

2021 average home value: $543,631
Annual mortgage cost: $26,616
Annual grocery cost: $$4,359.55
Annual healthcare cost: $5,727.81
Annual utilities cost: $3,022.62
Annual transportation cost: $4,666.01
Total annual necessities cost: $44,391.99
Taxes on Social Security benefits? No
Taxes on retirement income? No

20. Fountain Hills, Arizona

2021 average home value: $578,712
Annual mortgage cost: $26,532
Annual grocery cost: $4,267.06
Annual healthcare cost: $6,147.90
Annual utilities cost: $3,786.78
Annual transportation cost: $4,112.84
Total annual necessities cost: $44,846.58
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

19. Hilton Head Island, South Carolina

2021 average home value: $628,784
Annual mortgage cost: $28,392
Annual grocery cost: $4,494.08
Annual healthcare cost: $6,454.62
Annual utilities cost: $3,748.95
Annual transportation cost: $2,421.01
Total annual necessities cost: $45,510.01
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

18. Denver

2021 average home value: $568,607
Annual mortgage cost: $27,300
Annual grocery cost: $4,283.88
Annual healthcare cost: $6,167.90
Annual utilities cost: $3,639.25
Annual transportation cost: $4,170.31
Total annual necessities cost: $45,561.33
Taxes on Social Security benefits? Yes
Taxes on retirement income? Yes

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17. Austin

2021 average home value: $541,739
Annual mortgage cost: $30,264
Annual grocery cost: $4,065.27
Annual healthcare cost: $6,294.59
Annual utilities cost: $3,748.95
Annual transportation cost: $3,947.61
Total annual necessities cost: $48,320.42
Taxes on Social Security benefits? No
Taxes on retirement income? No

16. Boston

2021 average home value: $691,793
Annual mortgage cost: $31,104
Annual grocery cost: $4,683.26
Annual healthcare cost: $5,561.11
Annual utilities cost: $34,418.54
Annual transportation cost: $4,734.26
Total annual necessities cost: $50,501.17
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

15. Sedona, Arizona

2021 average home value: $706,926
Annual mortgage cost: $32,484
Annual grocery cost: $4,397.38
Annual healthcare cost: $7,674.87
Annual utilities cost: $3,919.19
Annual transportation cost: $2,923.89
Total annual necessities cost: $51,399.33
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

14. North Palm Beach, Florida

2021 average home value: $666,935
Annual mortgage cost: $32,316
Annual grocery cost: $4,548.73
Annual healthcare cost: $6,541.31
Annual utilities cost: $3,684.64
Annual transportation cost: $4,346.32
Total annual necessities cost: $51,437
Taxes on Social Security benefits? No
Taxes on retirement income? No

13. Long Beach, California

2021 average home value: $781,101
Annual mortgage cost: $35,664
Annual grocery cost: $4,283.88
Annual healthcare cost: $5,961.19
Annual utilities cost: $3,673.29
Annual transportation cost: $5,671.77
Total annual necessities cost: $54,858.13
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

Tinnaporn Sathapornnanont / Shutterstock.com

12. District of Columbia

2021 average home value: $781,101
Annual mortgage cost: $35,664
Annual grocery cost: $4,796.76
Annual healthcare cost: $5,907.85
Annual utilities cost: $4,009.98
Annual transportation cost: $4,859.98
Total annual necessities cost: $55,238.57
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

11. Rancho Mirage, California

2021 average home value: $797,341
Annual mortgage cost: $37,356
Annual grocery cost: $4,267.06
Annual healthcare cost: $5,854.50
Annual utilities cost: $4,036.46
Annual transportation cost: $4,798.91
Total annual necessities cost: $56,312.94
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

10. San Diego, California

2021 average home value: $866,544
Annual mortgage cost: $40,608
Annual grocery cost: $4,611.79
Annual healthcare cost: $5,934.52
Annual utilities cost: $3,888.92
Annual transportation cost: $4,317.58
Total annual necessities cost: $59,360.82
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

samvaltenbergs / Getty Images/iStockphoto

9. Seattle

2021 average home value: $889,083
Annual mortgage cost: $42,900
Annual grocery cost: $4,569.75
Annual healthcare cost: $5,681.14
Annual utilities cost: $2,602.70
Annual transportation cost: $4,939
Total annual necessities cost: $60,692.59
Taxes on Social Security benefits? No
Taxes on retirement income? No

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8. New York

2021 average home value: $701,185
Annual mortgage cost: $37,056
Annual grocery cost: $4,901.86
Annual healthcare cost: $7,508.17
Annual utilities cost: $5,693.42
Annual transportation cost: $6,505.11
Total annual necessities cost: $61,664.56
Taxes on Social Security benefits? No
Taxes on retirement income? No

7. Los Angeles

2021 average home value: $897,101
Annual mortgage cost: $42,036
Annual grocery cost: $4,376.36
Annual healthcare cost: $5,961.19
Annual utilities cost: $3,544.67
Annual transportation cost: $5,937.58
Total annual necessities cost: $61,855.80
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

6. Oakland, California

2021 average home value: $958,693
Annual mortgage cost: $44,916
Annual grocery cost: $4,679.05
Annual healthcare cost: $6,901.38
Annual utilities cost: $3,416.05
Annual transportation cost: $4,518.74
Total annual necessities cost: $64,431.22
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

5. Marco Island, Florida

2021 average home value: $959,815
Annual mortgage cost: $46,512
Annual grocery cost: $4,767.34
Annual healthcare cost: $6,734.68
Annual utilities cost: $3,707.34
Annual transportation cost: $2,923.89
Total annual necessities cost: $64,645.24
Taxes on Social Security benefits? No
Taxes on retirement income? No

4. Ocean City, New Jersey

2021 average home value: $940,553
Annual mortgage cost: $57,516
Annual grocery cost: $4,800.97
Annual healthcare cost: $5,907.85
Annual utilities cost: $4,229.39
Annual transportation cost: $3,505.79
Total annual necessities cost: $75,960
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

3. Seal Beach, California

2021 average home value: $1,240,651
Annual mortgage cost: $58,128
Annual grocery cost: $4,494.08
Annual healthcare cost: $6,394.61
Annual utilities cost: $3,692.21
Annual transportation cost: $4,367.87
Total annual necessities cost: $77,076.77
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

2. San Jose, California

2021 average home value: $1,274,281
Annual mortgage cost: $59,712
Annual grocery cost: $4,779.95
Annual healthcare cost: $6,701.34
Annual utilities cost: $3,661.94
Annual transportation cost: $5,423.92
Total annual necessities cost: $80,279.15
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

franckreporter / Getty Images/iStockphoto

1. San Francisco

2021 average home value: $1,539,644
Annual mortgage cost: $72,144
Annual grocery cost: $4,901.86
Annual healthcare cost: $6,688
Annual utilities cost: $3,688.43
Annual transportation cost: $5,682.54
Total annual necessities cost: $93,104.84
Taxes on Social Security benefits? No
Taxes on retirement income? Yes

More From GOBankingRates

John Csiszar contributed to the reporting for this article.

Methodology: GOBankingRates determined the best (and worst) cities in the United States for an early retirement by looking at the top 50 most populated cities and top 50 cities with the highest 65 and older population according to the United States Census Bureau 2019 American Community Survey. GOBankingRates analyzed these 100 cities using the following criteria: (1) average 2021 Home Value Zillow’s 2021 data; (2) an annual mortgage cost using Zillow’s mortgage calculator using a 20% down payment and a 2.88% 30-year fixed rate mortgage as sourced from the Federal Reserve Bank of St. Louis and propery tax rates sourced from the Tax Foundation; and (3) itemized cost-of-living index for groceries, utilities, transportation, healthcare and miscellaneous expenditure, based on the Bureau of Labor Statistics’ 2020 Consumer Expenditure Survey, which were adjusted to each city’s local cost of living, sourced from Sperling’s Best Places. Factors (2) and (3) were combined to give; (4) total annual necessities cost of living, which was the determining factor for the final rankings with the lower cost of living being best. GOBankingRates also found if each city’s state taxed social security benefits and/or retirement income from AARP and each state’s individual website for supplemental data. All data was collected and is up to date as of Sept. 28, 2021.