For those on a fixed income, high taxes can eat into retirement savings fast. That’s why more 55+ homebuyers are asking, “How can retirees save on taxes?” A big part of that is choosing a tax-friendly state. As living costs and property taxes keep climbing, retirees are looking for places that offer financial relief, great weather, and plenty of amenities. Many are leaving high-tax places like New York, New Jersey, and Illinois for areas with lower taxes, affordable housing, and a better overall quality of life.
Here’s a look at some of the top states retirees are moving to, along with standout 55+ active adult communities in each:
1. Florida
Known for its warm climate and no state income tax, Florida remains a top destination for retirees. While property taxes are moderate, the absence of income tax on Social Security benefits, pensions, and other retirement income makes it particularly attractive.
Tax Benefits
- No State Income Tax – Florida does not tax income, including Social Security, pensions, 401(k)s, IRAs, or other retirement distributions.
- No Estate or Inheritance Tax – Beneficiaries do not have to pay state taxes on inherited assets.
- Homestead Exemption – Homeowners can qualify for a property tax exemption on their primary residence.
- Senior Property Tax Exemptions – Some counties offer additional exemptions for residents 65 and older who meet income requirements.
- No Capital Gains Tax – Florida does not impose its own capital gains tax; federal capital gains taxes still apply.
- Low Property Tax Rates – While property taxes vary by county, Florida’s rates are generally lower than the national average.
Notable 55+ Active Adult Communities
Large & Well-Known
- The Villages (The Villages) – One of the largest and most famous 55+ communities in the U.S., with over 130,000 residents, 50+ golf courses, and hundreds of amenities.
- On Top of the World (Ocala) – A popular active adult community with affordable homes, three golf courses, and a vibrant social scene.
- Latitude Margaritaville (Daytona Beach) – Inspired by Jimmy Buffett’s lifestyle, offering resort-style living, music-themed events, and tropical vibes.
- Solivita (Kissimmee) – A gated community near Orlando featuring golf courses, pools, and a full calendar of activities.
Coastal & Luxury
- Valencia Trails (Naples) – An upscale 55+ community with resort-style amenities including the Valencia Trails Racquet Club.
- Pelican Preserve (Fort Myers) – A master-planned community with a golf course, nature preserve, and a large town center.
- Del Webb Naples (Ave Maria) – A sought-after community near Naples, featuring golf, pools, and a grand clubhouse.
Smaller & Affordable
- Cascades at River Hall (Alva) – A budget-friendly, gated community near Fort Myers with golf and resort-style amenities.
- Lakes of Mount Dora (Mount Dora) – A unique waterfront 55+ community with navigable canals and scenic views.
- Trilogy Orlando (Groveland) – Offers affordable, modern homes with a vibrant social and fitness scene.
2. Tennessee
With no income tax and some of the lowest property taxes in the U.S., Tennessee offers a low-tax environment for retirees. Also, the state’s vibrant music scene and scenic landscapes add to its attractiveness.
Tax Benefits
- No State Income Tax – Tennessee does not tax wages, Social Security, pensions, 401(k)s, IRAs, or other retirement income.
- No Estate or Inheritance Tax – There are no state-level taxes on inherited assets.
- Low Property Tax Rates – Tennessee’s property taxes are below the national average, though rates vary by county.
- Property Tax Relief for Seniors – Homeowners 65 and older may qualify for property tax relief or freezes, depending on income and county-specific programs.
- No Capital Gains Tax – Tennessee does not have a state capital gains tax, though federal taxes still apply.
Notable 55+ Active Adult Communities
Large & Well-Known
- Tellico Village (Loudon) – A scenic, lakefront community on Tellico Lake with boating, golf courses, and an active social scene.
- Fairfield Glade (Crossville) – A resort-style community with five golf courses, hiking trails, lakes, and tons of amenities.
- Del Webb Lake Providence (Mount Juliet) – A gated 55+ community near Nashville featuring a 24,000-square-foot clubhouse, indoor/outdoor pools, and a scenic lake.
Cozy & Affordable
- Retreat at Fairvue (Gallatin) – A small, upscale community near Nashville with modern homes and easy access to Old Hickory Lake.
- StoneBridge (Lebanon) – A low-maintenance community with affordable homes and resort-style amenities near Nashville.
New & Growing
- Del Webb Southern Springs (Spring Hill) – A newer active adult community with a large clubhouse, fitness center, and pickleball courts.
- Del Webb Barton Village (Lebanon) – A pet-friendly community offering high-end homes, a fitness center, and a resort-style pool with a sun deck.
- Nexus South (Gallatin) – A sought-after 55+ neighborhood in a picturesque area near shopping, dining, and cultural attractions.
3. Delaware
With no sales tax, no state income tax, low property taxes, generous pension and retirement income exemptions, and no inheritance or estate tax, combined with its coastal charm, it’s no surprise that Delaware is rapidly becoming one of the top retirement destinations.
Tax Benefits
- No Sales Tax – Delaware has no state or local sales tax, making everyday purchases more affordable.
- No State Tax on Social Security – Social Security benefits are completely tax-free at the state level.
- Low Income Tax Rates – Delaware’s income tax ranges from 0% to 6.6%, and residents 60 and older can exclude up to $12,500 of eligible pension and retirement income, including 401(k) and IRA withdrawals.
- No Estate or Inheritance Tax – Delaware does not impose taxes on inherited assets.
- Low Property Taxes – Delaware has some of the lowest property taxes in the U.S.
- Senior Property Tax Credit – Homeowners 65 and older may qualify for a property tax credit of up to $500, depending on residency length.
Notable 55+ Active Adult Communities
Large & Well-Known
- The Villages of Red Mill Pond (Lewes) – A gated community offering low-maintenance homes, walking trails, a clubhouse, and access to one of the state’s largest freshwater lakes.
- Heritage Shores (Bridgeville) – A resort-style community with an 18-hole golf course, clubhouse, pool, and a variety of recreational activities.
- Noble’s Pond (Dover) – Country club living in a 55+ community within 90 minutes of Baltimore and Philadelphia.
4. South Carolina
With a population growth rate of 1.26%, South Carolina offers relatively low property taxes. Also, its mild climate and affordable housing further enhance its appeal.
Tax Benefits
- No Tax on Social Security – South Carolina does not tax Social Security benefits.
- Retirement Income Deduction – Residents 65 and older can deduct up to $15,000 in retirement income from taxable income. Those under 65 can deduct up to $3,000 from pensions, 401(k)s, and IRAs.
- No Estate or Inheritance Tax – There are no state-level taxes on inherited assets.
- Low Property Taxes – South Carolina has some of the lowest property taxes in the U.S.
- Homestead Exemption for Seniors – Homeowners 65 and older can exempt the first $50,000 of their home’s fair market value from property taxes.
Notable 55+ Active Adult Communities
Large & Well-Known Communities
- Sun City Hilton Head (Bluffton) – The largest 55+ community in South Carolina, featuring three golf courses, multiple clubhouses, pools, and over 200 clubs and activities.
- Del Webb Charleston at Nexton (Summerville) – A resort-style community near Charleston with a modern clubhouse, fitness center, pools, and walking trails.
- Del Webb at Cane Bay (Summerville) – A budget-friendly option in a master-planned community with golf cart-friendly roads, a clubhouse, and tons of activities.
Coastal & Luxury
- Latitude Margaritaville Hilton Head (Hardeeville) – A Jimmy Buffett-inspired community with island-style amenities, music-themed events, and a laid-back atmosphere.
- Cresswind Myrtle Beach (Myrtle Beach) – A 55+ community with resort-style amenities, fitness programs, and close access to beaches and golf courses.
- Four Seasons at Carolina Oaks (Bluffton) – A newer, upscale community with a state-of-the-art clubhouse, pickleball courts, and a resort-style pool.
Smaller & Affordable
- Carolina Orchards (Fort Mill) – A Del Webb community near Charlotte with low-maintenance homes, a large clubhouse, and an active social calendar.
- Cresswind Charleston (Summerville) – A peaceful, smaller community with a full-time lifestyle director, fitness center, and pickleball courts.
5. Nevada
Boasting no state income tax and property tax rates below 0.5%, Nevada is an increasingly popular choice for retirees. The state’s favorable tax structure is complemented by its diverse recreational opportunities.
Tax Benefits
- No State Income Tax – Nevada does not tax Social Security, pensions, 401(k)s, IRAs, or other retirement income.
- No Estate or Inheritance Tax – There are no state-level taxes on inherited assets.
- Low Property Taxes – Nevada’s property tax rates are below the national average, though they vary by county.
- No Capital Gains Tax – Nevada does not have a state capital gains tax, but federal taxes still apply.
Notable 55+ Active Adult Communities
Large & Well-Known
- Sun City Summerlin (Las Vegas) – The largest 55+ community in Nevada, featuring three golf courses, multiple clubhouses, pools, and over 80 clubs and activities.
- Sun City Anthem (Henderson) – A Del Webb community with two golf courses, fitness centers, a 77,000-square-foot clubhouse, and stunning mountain views.
- Sun City Mesquite (Mesquite) – A desert oasis with golf, walking trails, a massive clubhouse, and a low-maintenance lifestyle.
Luxury & Resort-Style
- Trilogy Sunstone (Las Vegas) – A new, upscale community with modern home designs, a state-of-the-art clubhouse, and resort-style amenities.
- Del Webb Lake Las Vegas (Henderson) – A gated 55+ community with access to Lake Las Vegas, golf courses, and luxury resort amenities.
Smaller & Affordable
- Solera at Anthem (Henderson) – A budget-friendly option in a master-planned community with a clubhouse, fitness center, and scenic desert views.
- Ardiente (North Las Vegas) – A smaller, gated community offering affordable homes, a clubhouse, and a strong sense of community.
- Sierra Canyon (Reno) – A charming community in Northern Nevada featuring a clubhouse, indoor pool, and breathtaking mountain views.
Expert Guidance: How 55places.com Agents Help You Save
At 55places.com, our Partner Agents are well-versed in the tax considerations that impact 55+ homenuyers. They provide informed guidance tailored to each buyer’s financial situation. Here’s how they stay knowledgeable:
1. State-Specific Expertise
Since tax policies vary widely, 55places.com agents specialize in the states they serve and stay updated on changes in retirement income tax exemptions, homestead exemptions, and inheritance tax laws. Agents can compare states like Florida (no state income tax) vs. Pennsylvania (no tax on retirement income) vs. Delaware (no sales tax and low property taxes) to help clients make an informed decision.
2. Practical Guidance for Retirees
55places.com Partner Agents provide practical guidance to retirees by helping them navigate the financial considerations of renting versus buying, factoring in tax benefits, estate planning, and long-term financial impact. They advise clients on the potential advantages of downsizing, including how home equity and capital gains taxes may affect their financial future.
Additionally, they explain tax-friendly benefits such as Homestead Exemptions and other deductions available to retirees in different states. By offering informed insights and connecting clients with trusted tax professionals and financial planners, 55places.com agents ensure retirees make well-informed decisions when selecting their next home.
3. Partnering With Local Experts
55places.com agents often refer clients to trusted tax professionals and financial planners for deeper analysis of their individual tax situations. Many agents work closely with active adult communities to provide insight into HOA fees, property tax rates, and potential tax breaks for seniors.
By staying informed on retirement tax implications, 55places.com agents ensure retirees receive the best possible guidance when choosing their next home.
Contact 55places.com Today!
Relocating to a tax-friendly state can significantly enhance retirees’ financial well-being. Beyond tax considerations, it’s essential to evaluate the overall cost of living, health care facilities, climate, and lifestyle offerings of each state. Visiting these communities and consulting with financial advisors and real estate agents can provide a clearer picture of the best fit for one’s retirement needs. Let 55places.com connect you with expert guidance and personalized insights—contact us today to find your perfect 55+ community!
