Living on a fixed income can make every financial choice feel crucial, from grocery shopping to where you might want to settle down.
For retirees relying solely on Social Security, this pressure can often be felt quite acutely. The average monthly Social Security benefit for retired workers is projected to be $2,071 as of January 2026, according to the Social Security Administration.
In fact, some states make retirement much more manageable for those who own homes and live just on Social Security, without supplementary pensions or investments.
To assist with finding affordable options for retirees, an analysis of all 50 states was conducted, looking at six categories: income tax, property tax, vehicle tax, and homeowners insurance based on Social Security payments. Each state was ranked from 1 to 50 across these categories, and an average ranking was calculated.
Why Tennessee?
Tennessee emerges as a great place for retirees on Social Security. It boasts the eighth lowest overall cost of living in the country, based on data from the Community Economic Research Council.
Utility and transportation costs are competitive, and best of all, there’s no tax on Social Security income.
Moreover, Tennessee does not impose a vehicle property tax, and the average property tax rate is just 0.55 percent. For a $300,000 home, annual property taxes would be around $1,650.
Though homeowners insurance rates can be relatively high, many areas still offer competitive pricing. For instance, insuring a $300,000 home in the Memphis area averages $3,709 annually; however, that drops to $1,936 in Blountville, a charming small town in the northeastern corner of the state.
As for groceries, the average monthly cost is $347 per person, according to Move.org.
West Virginia’s appeal
West Virginia ranks among the top five most affordable states. It shines particularly in key areas like living costs, homeowners insurance, and grocery prices.
The average yearly homeowners insurance premium in West Virginia is around $1,047, the fifth lowest in the nation, according to Bankrate. Monthly grocery expenses average $334 per person, which also places the state in the top five.
West Virginia has reasonable property tax rates as well, averaging $1,620 annually, though it does rank 27th in terms of income taxes, with a rate of 4.82%. So, on a Social Security income of $2,071, it roughly translates to about $99.82 monthly.
While auto property tax is somewhat higher—$476 for a $29,000 vehicle—it’s still manageable for many retirees.
Georgia’s advantages
Georgia stands out as an appealing choice for retirees receiving Social Security income, performing well across various categories. It’s the only state to rank in the top five for every category analyzed.
The state has no property tax on vehicles and ranks 13th for monthly grocery costs, averaging $347 per person.
With a property tax rate of 0.81 percent on a $300,000 home, residents face an annual bill of about $2,430. Additionally, Georgia provides several property tax exemptions for seniors.
The income tax rate of 5.82 percent isn’t the lowest out there, but it holds its own, sitting at 16th place nationally. This translates to an estimated monthly cost of about $120.53 for the average Social Security recipient.
Homeowners insurance averages $2,041 per year, but rates can vary significantly based on location. For instance, in the coastal town of St. Mary’s, it’s $3,783, while just north in Murrayville, it drops to $1,743.
