For those on a fixed income, every financial choice carries weight—be it where to shop for groceries or where to settle down.
Retirees reliant on Social Security often feel this pressure acutely. As of January 2026, the average monthly Social Security benefit for retirees is about $2,071, according to the Social Security Administration.
Living comfortably in retirement can vary significantly from state to state for those solely depending on Social Security without other financial support like pensions or investments.
We examined all 50 states, focusing on six criteria: income tax, property tax, vehicle tax, homeowners insurance, and the impact of these taxes on Social Security benefits. By ranking each state in these categories, we determined which locations might offer more affordable options for retirees.
Nashville know-how
Tennessee appears to be a prime spot for retirees drawing Social Security. It boasts the eighth lowest cost of living in the country, according to reports from the Community Economic Research Council.
The state enjoys low utility and transportation costs while not taxing Social Security income.
Moreover, Tennessee refrains from charging a vehicle property tax, with the average property tax rate at just 0.55 percent. For a $300,000 home, that equates to an annual cost of roughly $1,650.
When it comes to homeowners insurance, Tennessee’s premiums can be somewhat steep, though competitive rates can still be found in certain areas.
For example, protecting a $300,000 home could cost around $3,709 in the Memphis area, but it might only be about $1,936 in Blountville, a charming town near the Virginia border.
The monthly grocery bill averages around $347 per person, based on data from Move.org.
Country life
West Virginia also ranks among the most affordable states for retirees. It stands out in crucial areas like overall cost of living, homeowners insurance, and monthly grocery expenses.
The annual homeowners insurance premium averages $1,047—making it the fifth lowest nationwide.
According to Move.org, groceries cost roughly $334 per month, putting West Virginia fifth in grocery affordability.
The state also ranks 10th for property taxes, averaging $1,620 yearly. Yet, its income tax situation isn’t as favorable, coming in at 27th overall, which means Social Security income can take a hit, costing retirees about $99.82 each month.
West Virginia’s vehicle property tax is in the middle range, at $476 per year for a car valued at $29,000, according to WalletHub.
Peach perfect
Georgia emerges as an excellent choice for Social Security retirees, showing consistent affordability across several important categories.
This state is the only one in the top five to rank highly across all areas assessed.
Georgia doesn’t tax vehicles and has an average monthly grocery bill of $347. Additionally, it provides various property tax exemptions for seniors.
WalletHub reports that property taxes average 0.81 percent, costing around $2,430 annually for a $300,000 home.
The state offers exemptions that lessen the property tax burden on those with a net income below $10,000, including surviving spouses of military personnel and first responders.
While Georgia’s income tax rate of 5.82 percent is not the lowest (Tennessee and West Virginia fare better), it still ranks competitively in the country, costing Social Security recipients about $120.53 monthly.
Regarding homeowners insurance, Georgia sits at 26th, with an average annual premium of $2,041. However, prices can vary widely depending on where one lives in the state.
For instance, coverage for a $300,000 home could be $3,783 in the coastal town of St. Mary’s, whereas it might be as low as $1,743 in Murrayville, a quaint town about an hour north of Atlanta.
