Retirement Readiness by State 2026
For each state, we compute how long a $1,000,000 retirement portfolio lasts accounting for state income tax, cost of living, and federal tax on withdrawals. Ranks all 50 states by retirement-friendliness — revealing a 10+ year gap between the best and worst states.
All 50 states: how long $1M lasts in retirement
Scenario: $1,000,000 portfolio, 4% annual withdrawal ($40,000), + $22,000 Social Security. $55,000 baseline annual spending adjusted by state COL index. Federal income tax on the withdrawal plus the §86-taxable share of the Social Security benefit ($11,950 of $22,000), using the 2026 married-filing-jointly brackets and the $32,200 standard deduction (IRS Rev. Proc. 2025-32) — $1,975. No age-65 additional standard deduction or OBBBA senior bonus is modelled. State income, sales, and property tax from the combined burden model. Years = portfolio ÷ (annual deficit after taxes).
| Rank | State | COL Adj. Spend | State Tax | After-Tax Income | Years $1M Lasts |
|---|---|---|---|---|---|
| 1 | Wyoming | $50,985 | $5,855 | $56,145 | 29 |
| 2 | North Dakota | $48,950 | $7,895 | $54,105 | 29 |
| 3 | Louisiana | $48,510 | $8,242.5 | $53,757.5 | 29 |
| 4 | South Dakota | $48,730 | $8,335 | $53,665 | 29 |
| 5 | Tennessee | $50,545 | $7,015 | $54,985 | 28 |
| 6 | Alabama | $48,840 | $8,365 | $53,635 | 28 |
| 7 | Arkansas | $47,795 | $9,974.32 | $52,025.68 | 28 |
| 8 | Mississippi | $47,850 | $10,311 | $51,689 | 28 |
| 9 | West Virginia | $49,225 | $10,174.3 | $51,825.7 | 27 |
| 10 | Oklahoma | $48,290 | $10,584 | $51,416 | 27 |
| 11 | Montana | $52,030 | $8,121.6 | $53,878.4 | 26 |
| 12 | South Carolina | $51,535 | $9,061.38 | $52,938.62 | 26 |
| 13 | New Mexico | $50,710 | $9,280.6 | $52,719.4 | 26 |
| 14 | Missouri | $49,940 | $10,137.11 | $51,862.89 | 26 |
| 15 | Kentucky | $49,610 | $10,957.4 | $51,042.6 | 26 |
| 16 | Iowa | $48,290 | $12,751.4 | $49,248.6 | 26 |
| 17 | Alaska | $56,320 | $5,895 | $56,105 | 25 |
| 18 | Nevada | $55,000 | $6,835 | $55,165 | 25 |
| 19 | North Carolina | $51,865 | $9,767.55 | $52,232.45 | 25 |
| 20 | Idaho | $52,525 | $9,778.43 | $52,221.57 | 25 |
| 21 | Indiana | $51,315 | $10,826 | $51,174 | 25 |
| 22 | Ohio | $51,040 | $11,644.13 | $50,355.87 | 25 |
| 23 | Nebraska | $49,555 | $12,978.16 | $49,021.84 | 25 |
| 24 | Florida | $56,870 | $7,655 | $54,345 | 24 |
| 25 | Arizona | $55,385 | $8,110 | $53,890 | 24 |
| 26 | Delaware | $54,890 | $9,029.5 | $52,970.5 | 24 |
| 27 | Utah | $54,395 | $10,079.46 | $51,920.54 | 24 |
| 28 | Georgia | $52,965 | $10,388 | $51,612 | 24 |
| 29 | Texas | $53,405 | $10,875 | $51,125 | 24 |
| 30 | Kansas | $49,555 | $13,778.15 | $48,221.85 | 24 |
| 31 | Colorado | $56,705 | $8,078.2 | $53,921.8 | 23 |
| 32 | Maine | $53,350 | $12,288.93 | $49,711.07 | 23 |
| 33 | Wisconsin | $51,755 | $14,213.04 | $47,786.96 | 23 |
| 34 | Washington | $58,850 | $7,935 | $54,065 | 22 |
| 35 | New Hampshire | $57,310 | $9,415 | $52,585 | 22 |
| 36 | Virginia | $55,605 | $11,434.3 | $50,565.7 | 22 |
| 37 | Minnesota | $54,230 | $12,938.05 | $49,061.95 | 22 |
| 38 | Pennsylvania | $53,680 | $13,165 | $48,835 | 22 |
| 39 | Michigan | $52,910 | $13,723.5 | $48,276.5 | 22 |
| 40 | Vermont | $53,900 | $13,766.3 | $48,233.7 | 22 |
| 41 | Hawaii | $60,500 | $8,704.66 | $53,295.34 | 21 |
| 42 | California | $60,885 | $9,794.06 | $52,205.94 | 21 |
| 43 | Oregon | $56,870 | $11,991 | $50,009 | 21 |
| 44 | Maryland | $57,750 | $12,410.25 | $49,589.75 | 21 |
| 45 | Rhode Island | $56,265 | $12,851.25 | $49,148.75 | 21 |
| 46 | Massachusetts | $58,190 | $13,515 | $48,485 | 20 |
| 47 | New York | $59,345 | $13,615.8 | $48,384.2 | 20 |
| 48 | Connecticut | $56,980 | $16,235 | $45,765 | 20 |
| 49 | Illinois | $55,000 | $17,015.43 | $44,984.57 | 20 |
| 50 | New Jersey | $59,840 | $16,184.5 | $45,815.5 | 19 |
Top 10 retirement-friendly states
Wyoming
COL-adjusted spend: $50,985/yr · Portfolio lasts 29 years
North Dakota
COL-adjusted spend: $48,950/yr · Portfolio lasts 29 years
Louisiana
COL-adjusted spend: $48,510/yr · Portfolio lasts 29 years
South Dakota
COL-adjusted spend: $48,730/yr · Portfolio lasts 29 years
Tennessee
COL-adjusted spend: $50,545/yr · Portfolio lasts 28 years
Alabama
COL-adjusted spend: $48,840/yr · Portfolio lasts 28 years
Arkansas
COL-adjusted spend: $47,795/yr · Portfolio lasts 28 years
Mississippi
COL-adjusted spend: $47,850/yr · Portfolio lasts 28 years
West Virginia
COL-adjusted spend: $49,225/yr · Portfolio lasts 27 years
Oklahoma
COL-adjusted spend: $48,290/yr · Portfolio lasts 27 years
Key findings
- COL is the dominant variable. At the $62,000 of retirement income this model assumes, state income tax runs from $0 in 10 states to $3,490 in Oregon — real money, but not what decides the ranking. Cost of living is: the same $55,000 baseline spend becomes $60,885 in California (COL 110.7) against $47,795 in Arkansas (COL 86.9). That $13,090/year gap dominates every other factor.
- A 10-year gap between best and worst. The same $1M portfolio lasts 29 years in Louisiana, North Dakota, South Dakota and Wyoming, and just 19 in New Jersey. This is the difference between comfortable retirement and running out of money.
- No-income-tax states are good but not best. The three no-income-tax states people name first land mid-table: Florida 24, Texas 24, Nevada 25 years. Every one of them is beaten by low-COL states that do tax income — Arkansas and Mississippi are joint-best at 29 years, and Oklahoma reaches 27. The income tax penalty is smaller than the COL penalty at retirement income levels.
- Medicare IRMAA is a national cliff, not a state issue. IRMAA surcharges depend on MAGI, not state. Managing withdrawals to stay under IRMAA thresholds is a national planning concern — see our IRMAA calculator.
Methodology
Data compiled from the sources listed above. All figures cross-checked against primary data from the relevant federal and state agencies. Methodology details in the data sections above.
License: This analysis is published under CC-BY 4.0. Re-use freely with attribution to USTax Tools and a link back to this page.