50 Best (and Worst) Cities for an Early Retirement

If you’re planning on early retirement, 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.

To help in your quest, GOBankingRates compiled a list of the best and worst cities for early retirement. The study included the top 50 most populated cities and the top 50 cities with the highest 65 and older population, according to the United States Census Bureau 2022 American Community Survey. GOBankingRates also considered each city’s state taxes on Social Security benefits and/or retirement income.

Based on the data, GOBankingRates found that these 50 cities are among the best and worst for retiring early. Cities are ranked in reverse order, from the worst cities to the best.

See if your city made the list — and how that might impact your retirement dreams.

Unfortunately for those seeking early retirement, many of the most popular destinations in America, from New York to San Francisco, 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.

Here’s a look at 25 cities where you’ll need a much larger-than-average nest egg to survive early retirement.

• 2023 average home value: $1,469,607
• Annual mortgage cost: $90,290
• Total annual necessities cost: $111,950
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $1,362,447
• Annual mortgage cost: $83,706
• Total annual necessities cost: $109,913
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $1,389,468
• Annual mortgage cost: $85,366
• Total annual necessities cost: $107,682
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $1,322,592
• Annual mortgage cost: $81,258
• Total annual necessities cost: $106,397
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $1,323,569
• Annual mortgage cost: $81,318
• Total annual necessities cost: $103,700
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $1,043,912
• Annual mortgage cost: $64,136
• Total annual necessities cost: $86,711
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $1,032,019
• Annual mortgage cost: $63,405
• Total annual necessities cost: $86,045
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $1,005,152
• Annual mortgage cost: $61,755
• Total annual necessities cost: $85,231
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $1,020,738
• Annual mortgage cost: $62,712
• Total annual necessities cost: $84,981
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $939,112
• Annual mortgage cost: $57,697
• Total annual necessities cost: $81,617
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $934,651
• Annual mortgage cost: $57,423
• Total annual necessities cost: $77,975
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $763,619
• Annual mortgage cost: $46,915
• Total annual necessities cost: $77,457
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $849,941
• Annual mortgage cost: $52,219
• Total annual necessities cost: $76,408
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $889,339
• Annual mortgage cost: $54,639
• Total annual necessities cost: $76,215
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $819,454
• Annual mortgage cost: $50,346
• Total annual necessities cost: $73,689
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $744,951
• Annual mortgage cost: $47,612
• Total annual necessities cost: $69,846
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $744,846
• Annual mortgage cost: $45,762
• Total annual necessities cost: $69,332
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $715,766
• Annual mortgage cost: $43,975
• Total annual necessities cost: $67,827
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $698,917
• Annual mortgage cost: $42,940
• Total annual necessities cost: $64,729
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $692,723
• Annual mortgage cost: $42,560
• Total annual necessities cost: $64,303
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $641,865
• Annual mortgage cost: $39,435
• Total annual necessities cost: $62,307
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $655,971
• Annual mortgage cost: $40,302
• Total annual necessities cost: $61,417
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $621,636
• Annual mortgage cost: $38,192
• Total annual necessities cost: $60,447
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $601,853
• Annual mortgage cost: $36,977
• Total annual necessities cost: $60,386
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $575,630
• Annual mortgage cost: $35,366
• Total annual necessities cost: $59,542
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

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 Wichita, Kansas; Albuquerque, New Mexico and Minneapolis — and several also have no taxes on retirement income.

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.

• 2023 average home value: $302,867
• Annual mortgage cost: $18,608
• Total annual necessities cost: $40,288
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $324,141
• Annual mortgage cost: $19,915
• Total annual necessities cost: $40,071
• Taxes on Social Security benefits? Yes
• Taxes on retirement income? Yes

• 2023 average home value: $297,397
• Annual mortgage cost: $18,271
• Total annual necessities cost: $40,017
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $325,344
• Annual mortgage cost: $19,989
• Total annual necessities cost: $39,994
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $323,949
• Annual mortgage cost: $19,903
• Total annual necessities cost: $39,793
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $284,420
• Annual mortgage cost: $17,474
• Total annual necessities cost: $39,549
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $289,140
• Annual mortgage cost: $17,764
• Total annual necessities cost: $38,370
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $311,913
• Annual mortgage cost: $19,613
• Total annual necessities cost: $38,322
• Taxes on Social Security benefits? Yes
• Taxes on retirement income? Yes

• 2023 average home value: $287,293
• Annual mortgage cost: $17,651
• Total annual necessities cost: $38,198
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $265,761
• Annual mortgage cost: $16,328
• Total annual necessities cost: $38,174
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $264,117
• Annual mortgage cost: $16,227
• Total annual necessities cost: $37,702
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $207,677
• Annual mortgage cost: $12,759
• Total annual necessities cost: $36,951
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $257,993
• Annual mortgage cost: $15,851
• Total annual necessities cost: $36,379
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $243,089
• Annual mortgage cost: $14,935
• Total annual necessities cost: $35,201
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $230,721
• Annual mortgage cost: $14,175
• Total annual necessities cost: $35,008
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $220,799
• Annual mortgage cost: $13,565
• Total annual necessities cost: $34,602
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $219,547
• Annual mortgage cost: $13,489
• Total annual necessities cost: $33,850
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $194,392
• Annual mortgage cost: $11,943
• Total annual necessities cost: $33,327
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $209,432
• Annual mortgage cost: $12,867
• Total annual necessities cost: $33,197
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $192,520
• Annual mortgage cost: $11,828
• Total annual necessities cost: $32,660
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $172,958
• Annual mortgage cost: $10,626
• Total annual necessities cost: $32,400
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $182,470
• Annual mortgage cost: $11,211
• Total annual necessities cost: $32,028
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

• 2023 average home value: $180,018
• Annual mortgage cost: $11,060
• Total annual necessities cost: $31,734
• Taxes on Social Security benefits? Yes
• Taxes on retirement income? Yes

• 2023 average home value: $147,323
• Annual mortgage cost: $9,051
• Total annual necessities cost: $29,576
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

• 2023 average home value: $64,593
• Annual mortgage cost: $3,968
• Total annual necessities cost: $27,019
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

Jordan Rosenfeld and 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 2022 American Community Survey. GOBankingRates analyzed these 100 cities using the following criteria: (1) average 2023 home value using Zillow’s November 2023 data; (2) an annual mortgage cost using a 20% down payment and a 6.62% 30-year fixed rate mortgage, as sourced from the Federal Reserve Bank of St. Louis; and (3) itemized cost of living index for groceries, utilities, transportation and healthcare, based on the Bureau of Labor Statistics’ 2022 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 whether each city’s state taxed Social Security benefits and/or retirement income using data from CNBC and each state’s individual website for supplemental data. All data was collected and is up to date as of Jan. 10, 2024.