A recent WalletHub study has declared Florida the best state for retirement in 2025, citing its favorable tax environment for retirees. Despite a higher cost of living, Florida offers no estate, inheritance, or income taxes, making it an attractive place for those in retirement.

“Retirement should be a time for relaxation, not financial stress, especially when living on a fixed income,” said WalletHub Analyst Chip Lupo. He emphasized that states with lower taxes tend to be more advantageous for retirees.

Following Florida, Minnesota secured the second spot, praised for its excellent healthcare access, including nursing homes and health aides, alongside strong safeguards against elder abuse.

Colorado came in third, thanks to its absence of inheritance or estate taxes, coupled with a low senior poverty rate and minimal social isolation among the elderly.

Top 10 States for Retirement in 2025:

1. Florida
2. Minnesota
3. Colorado
4. Wyoming
5. South Dakota
6. Pennsylvania
7. New Hampshire
8. Delaware
9. North Dakota
10. Wisconsin

Bottom 10 States for Retirement in 2025:

1. Kentucky
2. Louisiana
3. Mississippi
4. Washington
5. New Mexico
6. New Jersey
7. Rhode Island
8. West Virginia
9. Arkansas
10. Hawaii

For more details on the rankings and the methodology behind them, check out the full study on WalletHub’s website.

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(Image credit: USA Today)