From Punta Gorda to Daytona Beach, Florida was long regarded as the premier place to retire in the United States.
However, recent spikes in the state’s real estate prices and the high cost of living have made it unaffordable for many retirees earning $75,000 or less, according to a recent analysis by The Wall Street Journal.
So if you’re considering scrapping your plans to retire to the Sunshine State and looking for alternatives, follow the lead of some longtime Floridians who’ve packed up for other locations.
Three states, in particular, are excellent alternatives for retirees who are looking for a low cost of living, good Medicare performance in available care and pricing, and tax laws that benefit an older demographic.
These states are also among the top five destinations for former Florida residents, according to a 2024 report from the state’s chamber of commerce.
To determine three alternative states, The Independent relied on cost-of-living data, Medicare performance scores and tax data from three sources: nationally-recognized economic development research firm the Council for Community & Economic Research via the Missouri Economic Research and Information Center; non-partisan healthcare research and policy group The Commonwealth Fund; and the nonpartisan tax policy nonprofit Tax Foundation.
Bigger just might be better
Texas is seen as a good alternative by retirees who want a warm climate, beaches and beneficial tax structure. The state’s cost of living was ranked No. 11 in the country and is better than Florida in grocery, housing, and transportation costs, according to the Council for Community & Economic Research.
Like Florida, Texas is one of nine states that doesn’t charge income tax for residents, according to the Tax Foundation. This means that retirement withdrawals from 401(k) and traditional IRAs aren’t taxed as income like they are in 41 states.
This presents a huge advantage to retirees. For example, the average 401(k) balance for someone in their 60s is around $580,000, according to financial firm Empower. Georgia retirees could pay as much as $31,00 before deductions on $580,000 because of the state’s 5.39 percent income tax.
However, the state’s Medicare, the government healthcare system that retirees tend to rely on after 65, is among the worst in the country, according to The Commonwealth Fund.
For those who are struggling with the thought of missing out on Florida’s beautiful beaches, Texas is home to the eighth longest shoreline in the nation, according to the National Oceanic and Atmospheric Administration.
An all-around star
North Carolina is the only state in our trio that ranked in the top 30 for all three categories used in The Independent’s analysis. It ranked No. 26 for cost of living (still lower than Florida), 14th for Medicare performance (the best of the three states) and 22nd for its individual income tax situation.
The state’s individual income tax rate is relatively low at 4.25 percent, and it has competitive property and sales tax systems, the Tax Foundation noted. Also, the Tarheel State was the top destination for those who migrated from Florida between 2019 and 2024, according to the Florida chamber of commerce.
North Carolina is among the top 20 states for physical activity among seniors, with the state’s older population getting an average of 98.1 minutes of active minutes daily, according to a 2025 report from insurance company Choice Mutual.
North Carolina has the seventh-longest shoreline of any state in the country, according to the National Oceanic and Atmospheric Administration.
Music to your ears
Tennessee earned a top ranking from The Tax Foundation due to its lack of income tax. Like Texas, retirees with 401(k)s and traditional IRAs won’t pay any state taxes on their withdrawals.
Additionally, the state ranked No. 8 in cost of living, with the Council for Community & Economic Research giving Tennessee excellent scores for its grocery prices, utilities and transportation costs.
Tennessee ranked No. 39 for its Medicare performance score, which was better than Florida’s ranking. Like North Carolina, Tennessee was among the top 20 states for daily activity among seniors at 97.6 minutes, according to Choice Mutual.