Updated
Updated · Kiplinger's Personal Finance · Jul 28
Kiplinger Ranks 5 Tax-Friendly Retirement States as Healthcare Costs Hit $185,500
Updated
Updated · Kiplinger's Personal Finance · Jul 28

Kiplinger Ranks 5 Tax-Friendly Retirement States as Healthcare Costs Hit $185,500

3 articles · Updated · Kiplinger's Personal Finance · Jul 28

Summary

  • Kiplinger named Washington, Pennsylvania, Iowa, Florida and South Dakota the five best tax-friendly states for retiree healthcare, ranking them by older-adult care quality among 13 states that do not tax retirement income.
  • The screen paired tax breaks with median property taxes, cost-of-living data and United Health Foundation senior clinical-care scores, as a typical 65-year-old retiring in 2026 is expected to spend $185,500 on healthcare.
  • Washington took the top spot with a +0.528 senior healthcare score, though its $4,556 median property tax bill and 114.6 cost-of-living index made it the priciest option on the list.
  • Pennsylvania and Iowa followed with above-average care and lower living costs, while Florida and South Dakota stayed attractive on taxes but ranked below the national healthcare benchmark at -0.103 and -0.263.
  • The ranking underscores that zero state tax on Social Security, pensions and 401(k) withdrawals may not offset weaker medical access, higher housing costs or long travel for specialty care.

Insights

Why might a notoriously expensive state actually be the safest financial haven for your golden years?
Could chasing zero income tax in retirement secretly drain your savings through hidden housing and healthcare costs?
Are hidden local rules and strict application deadlines blocking you from thousands in secret retiree tax breaks?