Living on a fixed income can make every financial decision feel like a significant one, whether you’re choosing where to buy groceries – or where to live.
Retirees living on Social Security likely feel that stress. The average monthly Social Security payment for a retired worker was $2,071 in January 2026, according to the Social Security Administration.
For those who own a home and only have Social Security to live on – meaning no additional pension, 401K or other investments to speak of – retirement is a lot easier in some states over others.
The Independent has analyzed all 50 states based on six categories: overall cost of living, income taxes on Social Security payments, property taxes, vehicle taxes, homeowners insurance, and average monthly grocery bills per person – to seek out more affordable options for retirees. We ranked each state from No. 1 to No. 50 in each of the six categories, then calculated an average ranking for each state.
Nashville know-how
Tennessee is an ideal location for retirees on Social Security: The state has the eighth-lowest cost of living in the country, according to data from The Council for Community and Economic Research.
Tennessee has competitive utility and transportation costs and charges no taxes on Social Security income.
Additionally, the state doesn’t charge vehicle property taxes and has an average property tax rate of 0.55 percent, among the 15 lowest in the country, according to personal finance site WalletHub. Property taxes on a $300,000 home would cost $1,650 a year.
The state’s homeowner insurance rates are relatively high, according to personal finance site Bankrate, but there are a number of areas where competitive prices can be found.
For example, home insurance for a $300,000 house in the Memphis area averages $3,709 a year, according to Bankrate. But covering a $300,000 home costs $1,936 in Blountville, a quaint town in the northeast corner of the state near the Virginia border.
Groceries average $347 per month for one person, according to moving resource site Move.org.
Country living
West Virginia was a top-five state for affordability in The Independent’s analysis. The state was among the five best in three important categories: cost of living, homeowners insurance and monthly groceries.
The Mountaineer State’s average home insurance annual premium is $1,047, the fifth-lowest rate among all 50 states, according to Bankrate.
Monthly groceries for one person average $334 per month, according to Move.org, good enough for the fifth-best in the country.
Also, the state ranked No. 10 for property taxes at an average of $1,620 per year, according to WalletHug.
However, the West Virginia ranks No. 27 for income tax at 4.82 percent, according to tax research and analysis group Tax Foundation, or $99.82 a month on a $2,071 Social Security income (not including any deductions).
West Virginia’s vehicle property tax is among the 15 highest in the country at $476 for a $29,000 car, according to WalletHub.
Peach perfect
Georgia stood out as a desirable destination for retirees on Social Security because it performed consistently well across all categories.
It was the only state among the top five in The Independent’s analysis that ranked in the top 30 in every category.
Georgia doesn’t charge property tax on vehicles, and its monthly grocery bills for one person average $347, ranking No. 13 among states.
It ranked No. 25 for property taxes, levying a 0.81 percent rate, or $2,430 a year on a $300,000 home, according to WalletHub.
The state also offers senior citizen exemptions on property taxes for those with a net income of $10,000 or less and an exemption for surviving spouses of a service member, peace officer or firefighter, according to the Georgia Department of Revenue.
While Georgia’s 5.82 percent income tax isn’t as low as Tennessee or West Virginia, it remains competitive on a national scale, ranking No. 16 in the country, according to the Tax Foundation. The tax rate would cost the average Social Security recipient $120.53 per month.
The Peach State ranked No. 26 for homeowners insurance with an average annual premium of $2,041, according to Bankrate. Rates vary widely depending on where the home is located, though.
For example, the average annual home insurance premium for $300,000 in coverage is $3,783 in the coastal town of St. Marys but $1,743 in Murrayville, a small town around an hour north of Atlanta, according to Bankrate.
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