Retirement Readiness by State 2026
For each state, we compute how long a $1,000,000 retirement portfolio lasts accounting for state income tax, cost of living, and federal tax on withdrawals. Ranks all 50 states by retirement-friendliness — revealing a 10+ year gap between the best and worst states.
All 50 states: how long $1M lasts in retirement
Scenario: $1,000,000 portfolio, 4% annual withdrawal ($40,000), + $22,000 Social Security. $55,000 baseline annual spending adjusted by state COL index. Federal tax on withdrawals + SS (simplified 10% effective rate). State income, sales, and property tax from the combined burden model. Years = portfolio ÷ (annual deficit after taxes).
| Rank | State | COL Adj. Spend | State Tax | After-Tax Income | Years $1M Lasts |
|---|---|---|---|---|---|
| 1 | West Virginia | $46,200 | $10,482.5 | $51,517.5 | 29 |
| 2 | Tennessee | $50,050 | $7,140 | $54,860 | 28 |
| 3 | Arkansas | $47,850 | $10,312.8 | $51,687.2 | 28 |
| 4 | Mississippi | $46,200 | $11,100 | $50,900 | 28 |
| 5 | Wyoming | $52,800 | $5,980 | $56,020 | 27 |
| 6 | North Dakota | $50,600 | $8,355.4 | $53,644.6 | 27 |
| 7 | South Dakota | $50,600 | $8,460 | $53,540 | 27 |
| 8 | Louisiana | $50,050 | $9,140 | $52,860 | 27 |
| 9 | Alabama | $48,400 | $10,100 | $51,900 | 27 |
| 10 | Oklahoma | $47,850 | $11,370.5 | $50,629.5 | 27 |
| 11 | Indiana | $49,500 | $11,010 | $50,990 | 26 |
| 12 | Kentucky | $48,950 | $11,200 | $50,800 | 26 |
| 13 | Missouri | $48,950 | $11,829.37 | $50,170.63 | 26 |
| 14 | South Carolina | $51,150 | $10,864 | $51,136 | 25 |
| 15 | New Mexico | $51,150 | $10,919 | $51,081 | 25 |
| 16 | Texas | $51,150 | $11,000 | $51,000 | 25 |
| 17 | Ohio | $49,500 | $11,873.63 | $50,126.37 | 25 |
| 18 | Nevada | $56,650 | $6,960 | $55,040 | 24 |
| 19 | Florida | $56,100 | $7,780 | $54,220 | 24 |
| 20 | North Carolina | $52,250 | $10,910 | $51,090 | 24 |
| 21 | Georgia | $51,150 | $12,010 | $49,990 | 24 |
| 22 | Iowa | $49,500 | $14,180 | $47,820 | 24 |
| 23 | Michigan | $49,500 | $14,350 | $47,650 | 24 |
| 24 | Kansas | $48,950 | $15,385.2 | $46,614.8 | 24 |
| 25 | Arizona | $56,100 | $9,040 | $52,960 | 23 |
| 26 | Montana | $55,550 | $9,807.5 | $52,192.5 | 23 |
| 27 | Idaho | $53,350 | $12,120 | $49,880 | 23 |
| 28 | Nebraska | $50,050 | $14,568.26 | $47,431.74 | 23 |
| 29 | Wisconsin | $51,150 | $15,035.31 | $46,964.69 | 23 |
| 30 | Colorado | $57,750 | $9,620 | $52,380 | 22 |
| 31 | Delaware | $56,650 | $9,803.5 | $52,196.5 | 22 |
| 32 | Utah | $55,550 | $11,310 | $50,690 | 22 |
| 33 | Pennsylvania | $53,350 | $13,290 | $48,710 | 22 |
| 34 | Virginia | $56,650 | $12,672.5 | $49,327.5 | 21 |
| 35 | Minnesota | $53,900 | $15,143.85 | $46,856.15 | 21 |
| 36 | Illinois | $52,800 | $17,430 | $44,570 | 21 |
| 37 | Washington | $63,250 | $8,060 | $53,940 | 20 |
| 38 | New Hampshire | $61,600 | $9,540 | $52,460 | 20 |
| 39 | Alaska | $69,850 | $6,020 | $55,980 | 19 |
| 40 | Oregon | $62,150 | $13,812 | $48,188 | 19 |
| 41 | Rhode Island | $59,400 | $14,389.5 | $47,610.5 | 19 |
| 42 | Maine | $59,400 | $15,248.93 | $46,751.07 | 19 |
| 43 | Maryland | $63,250 | $13,157.5 | $48,842.5 | 18 |
| 44 | Vermont | $61,050 | $15,750 | $46,250 | 18 |
| 45 | Connecticut | $61,600 | $16,440 | $45,560 | 18 |
| 46 | New Jersey | $63,800 | $16,420 | $45,580 | 17 |
| 47 | Massachusetts | $72,050 | $14,080 | $47,920 | 16 |
| 48 | New York | $70,400 | $14,607.5 | $47,392.5 | 16 |
| 49 | California | $76,450 | $10,995.12 | $51,004.88 | 15 |
| 50 | Hawaii | $102,300 | $10,162.4 | $51,837.6 | 11 |
Top 10 retirement-friendly states
West Virginia
COL-adjusted spend: $46,200/yr · Portfolio lasts 29 years
Tennessee
COL-adjusted spend: $50,050/yr · Portfolio lasts 28 years
Arkansas
COL-adjusted spend: $47,850/yr · Portfolio lasts 28 years
Mississippi
COL-adjusted spend: $46,200/yr · Portfolio lasts 28 years
Wyoming
COL-adjusted spend: $52,800/yr · Portfolio lasts 27 years
North Dakota
COL-adjusted spend: $50,600/yr · Portfolio lasts 27 years
South Dakota
COL-adjusted spend: $50,600/yr · Portfolio lasts 27 years
Louisiana
COL-adjusted spend: $50,050/yr · Portfolio lasts 27 years
Alabama
COL-adjusted spend: $48,400/yr · Portfolio lasts 27 years
Oklahoma
COL-adjusted spend: $47,850/yr · Portfolio lasts 27 years
Key findings
- COL is the dominant variable. At retirement income levels (~$62,000), state income tax differences are modest ($0–$2,500). The real killer is cost of living — a $55,000 baseline spend becomes $82,500 in Hawaii (COL 150) vs $48,400 in Mississippi (COL 88). That $34,000/year gap dominates every other factor.
- A 10+ year gap between best and worst. The same $1M portfolio lasts 30+ years in low-COL states and under 20 years in the highest-COL states. This is the difference between comfortable retirement and running out of money.
- No-income-tax states are good but not best. FL, TX, NV rank in the top 15 but are beaten by low-COL states with income tax (MS, AR, OK). The income tax penalty is smaller than the COL penalty at retirement income levels.
- Medicare IRMAA is a national cliff, not a state issue. IRMAA surcharges depend on MAGI, not state. Managing withdrawals to stay under IRMAA thresholds is a national planning concern — see our IRMAA calculator.
Methodology
Data compiled from the sources listed above. All figures cross-checked against primary data from the relevant federal and state agencies. Methodology details in the data sections above.
License: This analysis is published under CC-BY 4.0. Re-use freely with attribution to USTax Tools and a link back to this page.