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
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
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
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.
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
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
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
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
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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.