For those on a fixed income, every financial decision feels significant—whether it’s about grocery shopping or choosing a place to live.
Retirees relying solely on Social Security often experience this pressure. The typical monthly benefit for retired workers stands at $2,071 as of January 2026, according to the Social Security Administration.
Living on Social Security can be considerably more manageable in some states compared to others, especially for retirees who own their homes and lack additional income sources like pensions or investments.
To find the most affordable states for these retirees, we analyzed all 50 states across six categories: income tax, property tax, vehicle tax, and homeowners insurance related to Social Security payments. Each state was ranked from 1 to 50 in each category, and we then calculated an average ranking.
Nashville know-how
Tennessee emerges as an excellent state for retirees on Social Security, boasting the eighth lowest cost of living nationwide, as reported by the Community Economic Research Council.
The state enjoys competitive costs for utilities and transportation, and importantly, it imposes no taxes on Social Security income.
Moreover, Tennessee has no vehicle property tax, and the average property tax rate is just 0.55 percent. For reference, property taxes on a home valued at $300,000 would amount to approximately $1,650 annually.
Homeowners insurance can be somewhat pricey; however, there are competitive rates available in various areas. For instance, insuring a $300,000 home in the Memphis area costs around $3,709 annually. In contrast, it only costs about $1,936 for that same coverage in Blountville, a charming town near Virginia.
The monthly grocery bill averages $347 per person, according to Move.org.
country life
Ranked among the top five most affordable states, West Virginia excels particularly in areas like cost of living, homeowners insurance, and grocery expenses.
The state’s average annual homeowners insurance premium is about $1,047, making it the fifth lowest in the country, as reported by Bankrate.
Monthly grocery costs average around $334 per person, placing West Virginia fifth nationally according to Move.org.
The state also has a competitive average property tax rate of $1,620 annually on homes, and ranks 10th in terms of property taxes.
However, West Virginia does have a higher income tax rate, ranking 27th at 4.82%, which translates to about $99.82 a month for someone receiving the average Social Security income.
For vehicle owners, the property tax stands at $476 for a car valued at $29,000, placing it 15th in the nation, per WalletHub.
peach perfect
Georgia frequently ranks well across various metrics, making it another appealing option for retirees living on Social Security.
This state was the only one to land in the top five in each analyzed category.
Georgia has no car property tax, and with an average grocery bill of $347 per person, maintains a competitive edge.
The property tax rate is 25th in the nation, with a $300,000 home taxed at 0.81 percent, or about $2,430 yearly.
Additionally, Georgia provides property tax exemptions for seniors. Those earning $10,000 or less per year, as well as surviving spouses of military members and first responders, may qualify.
Although the income tax rate at 5.82 percent isn’t the lowest compared to Tennessee or West Virginia, it’s still relatively competitive, coming in at 16th nationally, which costs Social Security recipients an estimated $120.53 monthly.
Homeowners insurance averages $2,041 a year, with variability depending on location. For example, in coastal St. Marys, it can go up to $3,783, while in Murrayville, located north of Atlanta, it dips to around $1,743.
