Wyoming tops 2026 retirement rankings as 6 states skip income tax

Wyoming has displaced Florida as the top US retirement destination in 2026, with tax-friendly states dominating both major rankings.

Wyoming claimed the No. 1 spot in both WalletHub and CareScout's 2026 retirement rankings, displacing Florida, as six of the top states impose no personal income tax.

The WalletHub analysis, released Aug. 31, compared more than 180 US cities across 45 metrics spanning healthcare, affordability, activities and quality of life, according to the personal finance website.

Florida ranked second with no state income tax and no tax on Social Security, though homeowners' insurance premiums topped $5,600 in 2025 driven by hurricane risk. Texas offers no state income tax and no tax on Social Security, pensions, 401(k) distributions or IRA withdrawals. South Dakota exempts every form of retirement income from state taxation, while Tennessee charges no state income tax and has property taxes among the lowest in the nation.

The rankings reflect a broader shift in retirement planning, with retirees weighing tax advantages against trade-offs in healthcare access and climate. New Hampshire eliminated its last income-related tax on Jan. 1, 2025, confirmed by the state's Department of Revenue Administration, making it among the few states with no individual income tax whatsoever.

The Tax Advantage Trade-Off

Wyoming's appeal rests on no personal income tax, no estate or inheritance tax, and an affordable cost of living. The trade-offs are harsh winters and a shortage of doctors, according to the rankings. Florida's warm weather and tax-free Social Security benefits keep it competitive, but hurricane-driven insurance costs have climbed sharply, with average homeowners' premiums exceeding $5,600 in 2025.

Texas offers a similar tax structure with no state income tax and no tax on Social Security, pensions, 401(k) distributions or IRA withdrawals, combined with a low overall cost of living and warm climate. South Dakota exempts every form of retirement income from state taxation, including Social Security, pensions and retirement account withdrawals, with no state income tax at all. Tennessee charges no state income tax and has property taxes among the lowest in the nation, making it a strong choice for retirees on a fixed income.

Other states in the top tier include Mississippi for low housing costs and broad tax exemptions, Oklahoma for affordability, Nebraska for fiscal stability, Pennsylvania for tax-free income, and Illinois for broad exemptions. South Carolina ranks highly for veterans, Virginia for healthcare, Colorado for geriatric care, and Minnesota is anchored by the Mayo Clinic.

Healthcare Access Varies Widely

WalletHub's city-level analysis shows healthcare quality varies significantly across retirement destinations. The top five cities for retiree healthcare were Sioux Falls, S.D.; South Burlington, Vt.; Missoula, Mont.; Fargo, N.D.; and Rapid City, S.D. The worst five were Gulfport, Miss.; Laredo, Texas; Augusta, Ga.; Montgomery, Ala.; and Fayetteville, N.C.

Among the 10 best overall cities to retire, Orlando, Fla. ranked 11th for healthcare, while Tampa ranked 89th and Miami 29th. Pittsburgh, which placed 10th overall, ranked 7th for healthcare, making it a strong option for retirees prioritizing medical access. The healthcare metrics included the share of family medicine physicians, healthcare facilities per capita, quality of public hospital systems, suicide rates for elders and death rates of the population aged 65 and older.

The city rankings also highlight the concentration of top retirement destinations in Florida, with Orlando, Miami, Tampa and Fort Lauderdale all making the top 10. California cities dominated the bottom of the list, with Fontana, Bakersfield, Rancho Cucamonga, Fresno, San Bernardino and Stockton all ranking among the 10 worst places to retire.

For retirees considering relocation, these rankings should be verified against the latest official state tax and insurance data, as rates and policies can change annually. State tax codes, insurance premiums and healthcare access should be confirmed with current official sources before making any retirement planning decisions.

This article is for informational purposes only and does not constitute investment advice.