Retirees are flocking to certain states in large numbers. While their motivations aren’t entirely clear, the growing cost of living — especially property taxes — is a likely factor.
A John Burns Research and Consulting study ranked states based on their highest and lowest median property tax rates.
While it can be tempting to save money, retirees should fully understand their finances, including their budget and spending habits, before relocating. This ensures they can afford the move, no matter how financially appealing it may seem.
Those who are ready might look to West Virginia and South Carolina — two states standing out as retiree hotspots, with property taxes of under 0.5%. Here’s what they offer and what retirees should consider.
West Virginia
West Virginia is ranked second best for retirement, just behind Delaware. While an official annual retiree count isn’t available, the U.S. Census Bureau reports that as of 2024, the state has a population of approximately 1.77 million, with over 21% of the population aged 65 and older.
Dr. Joshua Price, an associate professor of economics with WVU Tech, told 59News that West Virginia offers a low cost of living — 16% below the national average — along with tax incentives. This could likely entice Americans to migrate there — something John Burns data scientist Ian Kennedy predicts, along with its low property taxes.
As one of the country’s most affordable states, West Virginia residents can better manage inflation than those in many other states. Price noted this as another sticking point, particularly for retirees.
For example, the state has the ninth-lowest average property tax rate in the U.S. (0.55%). In West Virginia’s capital, Charleston, the median home sale price results in a monthly property tax of less than $120.
Additionally, taxes on Social Security benefits will be phased out by 2026, benefiting those approaching retirement.
But West Virginia’s appeal stretches beyond finances. Charleston offers laid-back, scenic mountain living with big-city amenities, as well as a thriving arts and culture scene.
Nearby towns like Hinton and Point Pleasant are known for their tight-knit, welcoming retirement communities.
Outside the capital region, popular retirement destinations include:
- Lewisburg, known for historic architecture and quaint boutiques.
- Morgantown, a vibrant college town with great health care facilities.
- Wheeling, offering a low cost of living and recreational options along the Ohio River.
Of course, no retirement destination is perfect. Challenges in West Virginia include access to health care facilities in rural areas, colder winters with significant snowfall and fewer job opportunities for retirees to supplement their fixed income.
South Carolina
South Carolina’s affordability has improved since 2023. However, the overall cost of living remains above average, at about 95.9% of the national mark.
Utility costs contribute to the higher expenses, while housing remains affordable. Other costs, such as groceries, are around the national average. House prices vary by region, but the state’s median home price — just under $297,000 — is about 17% below the U.S. average.
What makes South Carolina stand out is its tax structure. There’s no estate tax, Social Security benefits aren’t taxed and 401(k) and IRA withdrawals are only partially taxed.
The state offers a diverse range of retirement options:
- Myrtle Beach, known for its iconic waterfront and golfing.
- Charleston, has rich culture and historic antebellum architecture.
With nearly 200 miles of coastline, retirees can also find idyllic communities on islands like Kiawah and Seabrook.
While South Carolina’s mild winters and sunny summers appeal to many, retirees should consider the region’s hot summers (with July highs of 89°F), as well as the risks of hurricanes and flooding. Another potential drawback is the state’s relatively high health care costs.
All told, John Burns senior vice president of research, Chris Porter, predicts that South Carolina will become a more attractive destination for retirees. "If you were to rank these states over time, I think the Carolinas are moving up that list for sure," Porter told Realtor.com.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
