All lessons
Lesson · Interactive · 2026 edition

The best cities to retire in 2026

By Andrew Swinney, Personal Finance Editor

You and your spouse open a spreadsheet at the kitchen table. One column says Sarasota. The next says Boise. The third says Knoxville. You're trying to pick where to spend the next 25 years, and the brochures aren't helping.

Four numbers actually decide it. Taxes, housing, daily costs, healthcare. We pulled them for 16 popular destinations, plotted each against the national curve, and let you weight the ones that matter to you.

The right city is the one where you spend less to live the life you want.

Four numbers that decide retirement cost

A retirement-friendly city is a math problem. Four inputs, one annual bill. Miss on any single one and the rest of the budget can't save you.

Pick your retirement profile and weights

Pick the profile closest to your reality. Then push the sliders. If a low tax bill is the only thing you care about, drag taxes to the right and watch the leaderboard rearrange.

Retirement profile

Median 65+ household: pension, Social Security, and a meaningful 401(k).

Tax sensitivitybalanced
Housing sensitivitybalanced
Daily-cost sensitivitybalanced
Healthcare sensitivitybalanced

Where your city sits on the national retirement-cost curve

Look at the curve. It's the national distribution of annual retirement costs across US metros. Most couples land between $45,000 and $85,000 a year. The dashed line is Knoxville, TN. Anywhere left of the peak is a discount on retirement. Anywhere right is a premium.

Annual retirement cost, national distribution, Knoxville marked

The curve is where US retirees actually land. Left of the peak is a discount. Right of it is a premium.

51st percentile
Honest Number model · BLS CES 65+, Zillow ZHVI, C2ER, Tax Foundation, CMS 2026
Knoxville · annual cost
$64,417
51st percentile nationally
National median (couple, 65+)
$64,000
you'd be above the median
Cheaper than your pick
1 of 15
cities in this dataset

No state income tax, four real seasons, and a hospital system anchored by UT Medical.

Break the retirement bill into four piles

One total is easy to compare. It's terrible for deciding where to live. Two cities can land at the same annual cost with completely different shapes. Here's the same number broken into the four piles, Knoxville against the national median.

Annual cost stack: Knoxville vs national median

Same total, different shape. The mix tells you whether a place fits.

Honest Number model · 2025 and 2026 datasets
State income tax (retirement)
$0
Housing (own + rent blend)
$8,285
Daily cost of living
$48,600
Healthcare (couple, 65+)
$7,532

Your top 10 retirement cities, ranked live

Here's the dataset sorted by the weights you set. Drag the sliders above and the order shifts in real time. The copper bar is the city you picked.

Top 10 comfortable-profile retirement cities

Annual cost is a blended estimate using your weight settings. Lower is better.

Honest Number model · 2025 and 2026 datasets

Compare two retirement cities head to head

Nobody is actually choosing between 16 cities. You're agonizing between two. Put them side by side.

City A
City B

Knoxville vs San Diego: annual cost stack

Honest Number model · 2025 and 2026 datasets
Southeast
Knoxville, TN
$64,417/ yr
51st percentile nationally

No state income tax, four real seasons, and a hospital system anchored by UT Medical.

West
San Diego, CA
$118,289/ yr
100th percentile nationally

The benchmark for high-cost coastal retirement: best climate in the US, worst tax bill.

When the cheapest retirement city isn't the right one

The cheapest place on this list won't make you happy if you have no friends there and no doctor you trust. Use the dataset to build a shortlist of three. Then visit each one twice. Once in summer. Once in February.

Lean cheaper if…
  • Your portfolio sits at the low end of your profile range.
  • You're carrying any debt into retirement.
  • You expect heavy healthcare bills and want a safety margin.
  • You're flexible on climate and culture.
A high-cost city can still win if…
  • Family lives there. The flights you'd otherwise pay for eat the savings.
  • You have a condition only a few hospital systems handle well.
  • You're a renter with strong rent control or a paid-off home you'd never sell.
  • Climate, walkability, or access to care meaningfully extends your healthspan.
The state-tax trap

State income tax barely touches a modest retiree. Social Security is federally favored already, and most income-tax states exempt it outright. Pull six figures a year from a 401(k) or pension and the picture flips. That's why Florida and Tennessee top the luxe leaderboard and barely register on the modest one. Run your own numbers before you move for a tax break.

Run the rest of your retirement numbers

You've got a shortlist. Now figure out how much you can pull out each year and whether the money outlasts you.

About the author

Andrew Swinney, Personal Finance Editor

Andrew is a financial services executive with 15 years of experience. He grew up without financial education and built Honest Number to give everyone access to the intuitive, jargon-free financial knowledge he wishes he had. All content on Honest Number is for illustrative and educational purposes only and does not constitute financial advice. Consult a certified financial professional before making any financial decisions.