Are You Overpaying to
Retire in the Wrong State?

Nine states have no state income tax at all: Wyoming, Florida, Nevada, Tennessee, Texas, South Dakota, Washington, Alaska, and New Hampshire. Additionally, Mississippi exempts all retirement income (Social Security, pension, and IRA/401k), making it effectively tax-free for retirees. Pennsylvania exempts pension and IRA income entirely, taxing only non-retirement income at a flat 3.07%. Illinois and Iowa also exempt most retirement income.

Not always. States without income tax often make up revenue elsewhere. Texas has no income tax but property taxes average 1.81% — one of the highest in the country. Florida has no income tax but home insurance averages $9,283/yr due to hurricane risk. Tennessee has no income tax but the highest combined sales tax rate in the U.S. at 9.55%. This calculator is built specifically to show the full picture, not just the income tax headline.

Married filers generally benefit from a larger combined standard deduction, which reduces taxable income. The federal standard deduction for married couples is roughly double that of single filers, and most states follow a similar structure. For Social Security taxation, the income threshold before benefits become taxable is $32,000 for married couples vs. $25,000 for single filers. This calculator adjusts the income tax estimate based on your filing status selection.

For most retirees in 2026, Medicare costs roughly $385/month per person ($4,620/yr) when you add Medicare Part B ($185/mo), Part D prescription coverage (~$50/mo), and a Medigap Plan G supplement (~$150/mo). Married couples pay approximately $9,240/yr combined. If your income exceeds $206,000, IRMAA surcharges add $70–$280/mo per person to Part B costs. Note that Medicare does not cover dental, vision, or hearing — budget an additional $1,500–$3,000/yr for those.

This is one of the most underestimated retirement costs. Before Medicare eligibility at 65, ACA marketplace health insurance typically costs $7,000–$12,000/yr for a single person in their late 50s, and $14,000–$18,000/yr for a couple aged 60–64. Costs vary by state, plan tier, and income. If your income is low enough, ACA subsidies can significantly reduce this. This calculator estimates pre-Medicare costs based on your age range and filing status.

Utah has a flat 4.65% income tax on most retirement income, which puts it in the middle of the pack. But it has low property taxes (0.70%), reasonable utility costs ($450/mo average), and relatively affordable home insurance ($1,810/yr). For retirees who want four seasons, proximity to national parks, strong healthcare infrastructure, and a lower cost of living than coastal cities, Utah — particularly Utah County — offers a compelling total package. The tax savings from relocating to Wyoming or Nevada versus staying in Utah are real, but smaller than most people expect when you factor in the full cost picture.

This calculator uses 2026 state tax rates, EIA utility data, and national insurance averages to produce educational estimates. It's designed to give you a directionally accurate picture — good enough to identify whether a state is materially better or worse for your situation, and to understand which cost categories drive the difference. It is not a substitute for advice from a CPA, financial advisor, or licensed insurance agent who can model your specific situation including local taxes, available deductions, and subsidy eligibility. Think of it as a starting point for the right conversation.