6 Cheaper States Luring Florida Retirees Away in 2026

A moving truck backs out of a driveway in Fort Myers, loaded for a retired couple who spent a decade in Florida.

They aren’t heading back to where they started.

They’re stopping halfway, in a state where their same retirement savings cover more.

These are the states luring retirees away from Florida.

Note: This is general information, not financial or tax advice. Tax rules and dollar amounts are subject to change, so confirm the current details with a professional.

1. Tennessee

Tennessee wins over Florida retirees by matching the tax perk they moved to Florida for, then charging less for everything around it.

Like Florida, Tennessee collects no state income tax, so Social Security checks, pension deposits, and 401(k) withdrawals all arrive untouched.

The difference shows up in the bills underneath.

Property taxes run about 0.45% of a home’s value, among the lowest rates in the country, and a typical bill lands near $1,488 a year.

Housing and home insurance around Knoxville or Chattanooga cost far less than the Gulf Coast, and the median home runs near $332,600.

You pay less to stay.

More than 3,000 retirees traded Florida for Tennessee in a single recent year, chasing the same no-income-tax deal at a lower overall price.

2. Mississippi Keeps Costs Low

Mississippi tempts Florida retirees with one of the lowest costs of living in the country and a tax code that barely touches retirement money.

The state doesn’t tax qualified retirement income once you’ve retired, and that covers Social Security, pensions, 401(k)s, and individual retirement accounts (IRAs).

Nothing skimmed off the top.

Property taxes rank among the lowest anywhere, with a median bill around $1,221 a year.

A paid-off house in Oxford or Hattiesburg costs a fraction of the same square footage in Sarasota.

Only about 1,200 Florida retirees made the jump in a recent year, but those who did landed in one of the cheapest housing markets in the region.

For a retiree watching every dollar, that gap adds up fast.

3. Georgia’s $65,000 Break

Georgia shares a border with Florida, which makes it the shortest hop for retirees packing up and heading north.

It does charge a state income tax, unlike Florida.

But residents 65 and older can exclude up to $65,000 of retirement income per person, and Social Security escapes the state entirely.

It resets for each spouse.

A married couple can shield well over a hundred thousand dollars of yearly income before Georgia takes a cent.

Add property taxes near 0.74% and cheaper housing once you leave metro Atlanta, and the move makes financial sense.

Retirees who want cooler summers than Florida’s head for mountain towns like Blairsville and Dahlonega.

4. South Carolina’s Open Door

South Carolina takes in more retirees from Florida than any other state, and the money is the reason.

The state welcomed more than 5,400 residents aged 65 and older from Florida in a single recent year.

It skips Social Security tax completely, and it lets residents 65 and older deduct up to $15,000 of any income.

Seniors also get a homestead exemption that erases the first $50,000 of a home’s value from the tax rolls.

Charleston still costs money.

But property taxes near 0.45% and insurance well below Florida’s make the yearly total easier to carry.

Charleston and Greenville take the biggest share, and Myrtle Beach hands snowbirds a familiar stretch of coast.

5. Alabama’s Tiny Tax Bill

Alabama draws Florida retirees with the smallest property tax bills in the region.

The effective rate sits around 0.38%, the kind of number that keeps a big house cheap to hold onto.

Barely a rounding error.

Alabama doesn’t tax Social Security, and it leaves government and traditional pensions alone.

Withdrawals from a 401(k) or IRA face the state’s 2% to 5% income tax, though the first $6,000 is exempt once you turn 65.

Retirees settling around Huntsville or the Gulf Coast pay some of the lowest housing costs in the Southeast.

Gulf Shores gives transplants the same warm coast without Florida’s price tag.

6. North Carolina Cut the Rate

North Carolina keeps pulling Florida retirees toward the mountains near Asheville and the coast around Wilmington.

The state doesn’t tax Social Security, and in 2026 it trimmed its flat income tax to 3.99%.

And it keeps dropping.

That rate covers pension and 401(k) income, but the low percentage keeps the bite small.

Home insurance near the Blue Ridge costs a fraction of a coastal Florida policy, and property taxes sit around 0.61%.

More than 3,000 retirees chose North Carolina over Florida in the same recent year, many of them landing near Asheville’s mountains.

You get your four seasons back, without a northern winter to shovel.

The Insurance Gap

The push out of Florida usually starts with one line on the budget: The home insurance premium.

Florida is the most expensive state in the country for home insurance, averaging $7,136 a year for a typical policy, against a national average near $2,543.

That’s roughly triple.

Hurricane risk and years of lawsuits against insurers pushed the number there, and retirees on fixed incomes feel it first.

Some insurers have pulled back from the state altogether, leaving homeowners fewer options and higher quotes.