Cities With a Low Cost of Living for Retirees

Choosing to retire in a city with a lower cost of living can help you make the most of your retirement budget. So if you started saving late or want to try to retire a few years early, a move may be in order for your golden years. This article explores five popular retirement locations known for affordable housing, low tax rates, and thriving adult communities.

1. Tulsa, Oklahoma

Tulsa is the perfect place to spend your retirement years if you want to stay close to the hustle and bustle of city life. Bursting with culture, Tulsa is home to some fantastic galleries, museums, music festivals, a zoo and an impressive 135 parks. The city’s relatively low cost of living means that retirees can really make the most of their savings.

Median property price: $125,600

Sales Tax: 5.5%

Pension tax: Yes

Social security tax: No

Income tax: Yes

2. Columbus, Indiana

Columbus is a great choice for active retirees who are hoping to enjoy frequent visits from the grandkids. It boasts some fantastic outdoor play facilities, ice-cream parlors and a dedicated children’s museum. The city has a vibrant retirement community and activity centers especially for mature adults. While the sales tax in Indiana is higher than some other destinations on this list, housing prices are the second lowest.

Median property price: $124,200

Sales Tax: 7%

Pension tax: Yes

Social security tax: No

Income tax: Yes

3. Daytona Beach, Florida

Florida is an ideal location for people looking to stretch their retirement pot as far as possible, as it has no income tax and a sales tax rate that is below the national average. Daytona Beach has one of the largest retired populations in the state, making it an attractive option for older adults who hope to maintain an active social life. Living here also gives you access to miles of stunning beaches, a wide range of outdoor activities, and more sunshine than you can handle.

Median property price: $173,872

Sales tax: 6.5%

Pension tax: No

Social security tax: No

Income tax: No

4. Midland, Texas

Sales tax in Texas is comparatively high, though this is more than balanced out by the lack of income tax and rock-bottom property prices. If you’re retiring on a budget, Midland could be the perfect city for you. Midland residents enjoy a wealth of activities and programs aimed at older adults, including nature walks, community groups and a “foster grandparent” program.

Median property price: $96,600

Sales tax: 8.25%

Pension tax: Yes

Social security tax: No

Income tax: No

5. Harrisburg, Pennsylvania

Harrisburg has been named Pennsylvania’s most popular city and the 44th best place to live in the United States. The city’s retirees enjoy low housing costs, sales tax and pension tax compared to national averages. Harrisburg benefits from a varied and bustling cultural scene and some of the most breathtaking outdoor spaces in the state.

Median property price: $144,200

Sales tax: 6%

Pension tax: Partial

Social security tax: No

Income tax: Yes

Make the Most of Your Retirement Years

Putting roots down in the right location is the key to enjoying the best possible quality of life throughout your retirement. Affordability isn’t everything, but it is an important factor. There is little point having access to fantastic amenities if your budget does not allow you to take advantage of them.

Search online for other affordable cities around the country and start planning your retirement plan today. With lower sales, pension, social security and income tax, you might even be able to retire a few years early!