Worst States to Retire In 2026 (and Why They Rank So Low)

Every retirement ranking list shows you the best. But knowing what to avoid is just as valuable. When you’re living on a fixed income, moving to the wrong state can drain your savings faster than you expected.

We score all 50 states across 10 factors: income tax, Social Security exemptions, weather, healthcare, sales taxes, real estate, retiree population, crime rates, cost of living, and financial health. The states at the bottom of our best states to retire in 2026 rankings aren’t necessarily bad places to live. They’re just not well-suited for the specific needs of retirees.

The 10 Worst-Scoring States for Retirement in 2026

State	Primary Issue	SS Tax	Best Feature	Biggest Drawback
Alaska	Very high COL, extreme cold	No income tax	Tax-free	Cost + climate
Minnesota	Cold, taxes SS, high taxes	Taxes SS	Healthcare	Cold + taxes
North Dakota	Extreme cold, remote	Taxes SS	Affordable	Climate + remote
Maine	Cold, high COL	No SS tax	Safety	Weather + cost
Colorado	High COL, taxes SS	Taxes SS	Outdoor lifestyle	Cost + SS tax
Montana	Cold, limited HC	Taxes SS	Scenery	Healthcare + cold
Vermont	Cold, taxes SS, high COL	Taxes SS	Safety	Cost + weather
Wyoming	Extreme cold, remote	No income tax	Tax-free + safe	Cold + remote
Idaho	Cold, rising costs	No SS tax	Growing amenities	Cold winters
New Hampshire	Cold, high property tax	No income tax	Safety + HC	Cold + prop tax

 

Notice something about this list? It’s dominated by cold-weather states. That’s not a coincidence.

Why Cold States Rank So Low for Retirees

Our rankings weight weather as one of 10 factors, but cold climate has a cascading effect on several other factors too.

Heating costs are higher. Home maintenance is more expensive. Driving becomes more dangerous in winter. Mobility challenges increase when sidewalks and driveways are icy. Social isolation increases when people can’t easily get outside for months. That doesn’t mean cold states are unlivable in retirement. Millions of retirees do it every year. But when you’re comparing states objectively across factors that matter to retirees, warm weather states have a built-in advantage.

Breaking Down the Bottom 5

50. Alaska

Alaska ranks last in our retirement rankings, and it’s not close. The cost of living is among the highest in the country. Groceries cost significantly more than the national average due to shipping. Heating a home through Alaska’s long winters is expensive. Healthcare access is limited outside Anchorage and Fairbanks.

Alaska does have one major advantage: no state income tax. Residents also receive an annual Permanent Fund Dividend. But those financial benefits don’t come close to offsetting the extreme cost of living and brutal climate for most retirees. The state has a very small retiree population, which means fewer services built around people over 65.

49. Minnesota

Minnesota is a well-run state with excellent healthcare and low crime. So why does it rank near the bottom for retirees? The winters are brutal. The state taxes Social Security benefits (with a partial exemption). The overall tax burden is high. And while healthcare quality is excellent, the cost of living is moderate to high.

Minnesota is a great place to work and raise a family. As a retirement destination for people with options, the combination of cold weather and Social Security taxation pushes it down the rankings.

48. North Dakota

North Dakota has a very low cost of living and is moderately affordable for housing. But the winters are harsh, the state is remote, and it taxes Social Security income partially. Fargo and Bismarck have decent healthcare and community infrastructure. Rural areas are isolated.

47. Maine

This one might surprise you. Maine is the safest state in the country and has good healthcare. It also doesn’t tax Social Security. So why is it in the bottom 10? Weather and cost. Maine winters are long, cold, and limit outdoor activity for months. The cost of living is above average, particularly in the southern half of the state. If safety is your number one priority and you genuinely enjoy cold weather, Maine is an excellent choice. But across all 10 of our ranking factors, the cold and cost pull it down.

46. Colorado

Colorado has great healthcare, beautiful scenery, and an active outdoor lifestyle. It’s a popular state. But for retirees specifically, the numbers work against it. The cost of living is above average, especially along the Front Range. The state taxes Social Security benefits partially. Housing prices have risen dramatically. Our guide to the best places to retire in Colorado covers the most affordable options for retirees who still want to make it work.

The Caveat: Worst for Whom?

These rankings reflect what matters most to the average retiree: affordability, warm weather, tax-friendly treatment of retirement income, healthcare access, and safety.

But retirement is personal. If you’ve lived in Montana your whole life and your family is there, Montana isn’t the worst state for you. It’s home. If you love skiing and you can afford Colorado, it might be perfect regardless of where it falls on a ranking list.

These rankings are most useful for retirees who are open to relocating and want to compare options objectively. If that’s you, the states at the bottom of our list have clear disadvantages in the categories most retirees prioritize.

What the Best States Get Right

For comparison, the states that top our rankings share several features: warm climate, no Social Security tax (or no income tax at all), moderate to low cost of living, and established retiree populations with services built around older adults. That doesn’t mean they’re perfect. Florida’s cost of living has risen. Mississippi’s healthcare access is limited. Texas summers are brutally hot. Every state has tradeoffs. Tennessee is a good example of a state that balances these well. Our piece on whether Tennessee is retirement friendly breaks down why it scores so high.

How to Use This Information

If a state you’re considering is on this list, don’t automatically rule it out. Instead, look at why it ranked low and decide whether those factors matter to you.

Don’t mind cold weather? States like New Hampshire and Maine have excellent safety and healthcare. The weather is their main drag.

Have above-average savings? Colorado and Vermont are expensive but offer outstanding quality of life for those who can afford it.

Living on Social Security? Avoid the high-cost states on this list. Minnesota and Colorado’s Social Security taxation makes them even less attractive for lower-income retirees.

For a look at which states do score well on safety specifically, including several that also rank high on affordability, see our guide to the safest states to retire in 2026.