Living on a fixed income can make every financial choice feel heavy, whether it’s about grocery shopping or finding a suitable place to live.
Retirees depending on Social Security often experience this burden. As of January 2026, the average monthly payment for retired workers stands at $2,071, as reported by the Social Security Administration.
For those who own a home and rely solely on Social Security—without extra pensions or investments—retirement can be significantly easier in certain states compared to others.
We evaluated all 50 states across six categories: income tax, property tax, vehicle tax, and homeowners insurance related to Social Security payments. This analysis aimed to uncover more budget-friendly options for retirees, which led us to rank each state accordingly.
Nashville know-how
Tennessee emerges as a prime spot for retirees on Social Security. The state claims the eighth-lowest cost of living nationally, according to data from the Community Economic Research Council.
The utility and transportation costs are reasonable, plus there are no taxes on Social Security income.
Moreover, Tennessee doesn’t charge a vehicle property tax, and the average property tax rate is 0.55 percent. For a $300,000 home, property taxes would amount to about $1,650 yearly.
Homeowner insurance rates can also vary. While they may be relatively high, there are competitive options available in many areas. For example, insuring a $300,000 home in the Memphis area typically costs about $3,709 annually; meanwhile, in Blountville, it’s around $1,936.
On top of that, grocery expenses average about $347 monthly per person, according to the resource Move.org.
Country life
West Virginia ranks among the top five most affordable states. It excels in cost of living, homeowners insurance, and grocery costs.
Home insurance in West Virginia averages $1,047 annually, making it the fifth lowest across the country, per Bankrate.
Monthly grocery costs average $334 per person, landing the state fifth in the nation according to Move.org.
On the property tax front, West Virginia also does well, averaging $1,620 a year, which places it 10th overall according to WalletHub.
However, income taxes aren’t as favorable; the state ranks 27th with a tax rate of about 4.82%. For someone receiving $2,071 in Social Security income, that amounts to $99.82 each month in taxes.
When it comes to vehicle property taxes, West Virginia is more moderate—about $476 for a $29,000 car, ranking 15th in the nation.
Peach perfect
Georgia stands out as an attractive destination for retirees relying on Social Security, performing consistently well across various categories.
In fact, it’s the only state in the top five for affordability analysis from those ranked in the top 30 across categories.
Georgia has no property tax on cars and ranks 13th in average monthly grocery expenses at $347 per person.
According to WalletHub, the state’s property tax rate is 25th, where a $300,000 home’s tax is set at 0.81 percent, equating to $2,430 annually.
Furthermore, Georgia provides several services for seniors, including property tax exemptions for those with a net income of $10,000 or less, as well as qualifying surviving spouses of military members and public safety officers.
The income tax rate in Georgia is 5.82 percent. While this isn’t as low as Tennessee or West Virginia’s rates, it still stands competitively at 16th nationally, costing the average Social Security recipient around $120.53 per month.
In terms of homeowners insurance, Georgia ranks 26th with an average annual premium of $2,041. However, there can be significant differences depending on the specific location. For instance, in coastal St. Mary’s, the premium is about $3,783, whereas in Murrayville, it’s around $1,743—the latter being a small town situated north of Atlanta.
