The Best Places to Retire in NY, NC, and FL Based on Taxes & Cost of Living

State-Specific Retirement | by Jules Buxbaum | Friday, January 10, 2025

Are you looking for the **best places to retire** that offer manageable costs and tax-friendly policies? This article is for retirees, soon-to-be retirees, and anyone wanting to explore how New York (NY), North Carolina (NC), and Florida (FL) stack up for long-term financial well-being.

If you want a deeper look into how these three states handle various retirement levies, check out our in-depth guide on state-specific tax benefits for retirees in NY, NC & FL. Each location comes with pros and cons, so let’s break down the details that matter most—from tax rates to housing costs and beyond.

Tax Factors to Consider in NY, NC, and FL

Taxes can have a major impact on retirement income. Some states have no personal income tax, while others reduce certain tax bills for retirees. Balancing property taxes, Social Security taxation, and retirement account regulations can help you keep more of your hard-earned savings.

Long-term thinking is key. For example, Florida offers no state income tax, which is appealing if you have substantial retirement withdrawals. Meanwhile, North Carolina’s flat rate is going down to 3.99% by 2027, while New York can impose higher rates but also provides a deduction of up to $20,000 on qualified pension income for those 59½ and older.

Examples of State-Level Policies

• New York: Social Security benefits are not taxed, and retirees can exclude a chunk of pension income. However, property taxes can be steep, and the state maintains an estate tax.

• North Carolina: Social Security benefits are not taxed, and the flat rate on other retirement income is generally moderate. Lower property taxes boost its retirement appeal.

• Florida: No personal income tax or estate tax. Property taxes vary by county, but the homestead exemption may lower the bill for permanent residents.

For those who want a closer analysis of any federal benefits, you can see how each state treats Social Security benefits for retirees. Skipping an evaluation of these rules might lead to costly surprises.

Cost of Living Overview

Beyond taxes, expenses like housing, healthcare, and everyday goods determine how far your funds go. NY is known for pricier housing, particularly near urban centers. North Carolina generally stays below the national average, with more budget-friendly home prices. Florida also remains fairly moderate overall, though hotspots like Naples come with premium price tags.

Retirees should consider not just the average costs but also whether certain areas match their lifestyle preferences. Urban centers may have higher values for museums and healthcare access, while smaller towns often feature lower housing costs.

New York

The state’s overall cost of living hovers around 39% higher than the national average, driven mainly by housing in cities like New York City and surrounding suburbs. Even so, places like Ithaca or Saratoga Springs might have lower property and rent costs compared to Manhattan. According to Kiplinger (2025), pockets of upstate New York can be more budget-friendly than many realize.

North Carolina

North Carolina is roughly 4% under the national average in cost-of-living metrics. Home inventory in cities like Raleigh or Charlotte remains relatively affordable. Additionally, the state’s mild climate and cultural amenities attract “halfback” retirees—northerners who initially moved to Florida but settled halfway back in NC for family proximity and cooler summers.

Florida

Florida’s overall living costs typically fall near or slightly above the national benchmark, but one major perk is that your retirement withdrawals face no state income tax. Naples ranks high in satisfaction and healthcare quality, although local home prices can be steep. Locations like Cape Coral or Jacksonville often present more moderate housing costs while preserving Florida’s famous warmth.

Top Locales in Each State

Unique factors like amenities, weather, and property values shape a retiree’s decision. Below are some stand-out choices within each region.

New York: Saratoga Springs

Saratoga Springs is popular for its vibrant arts scene and mineral springs. Housing remains less expensive than major metros, and its walkable downtown appeals to many retirees. Compared to New York City, this upstate gem often boasts lower property taxes and a calmer pace of life.

North Carolina: Asheville

Asheville offers mountain views and a lively culture that blends art galleries, music venues, and farm-to-table fare. The cost of housing is higher than in some other NC cities but still more approachable than many parts of NY. It’s also home to a well-regarded healthcare network, giving retirees a reliable source of medical services.

Florida: Naples

Naples consistently tops national “best places” rankings thanks to warm weather, beaches, and a strong retiree community (U.S. News & World Report, 2025). While mortgages or rents can be hefty, the area’s no-state-income-tax rule combines with an active senior scene. For those wanting a more wallet-friendly option, central Florida cities like Ocala are worth exploring.

A Word on Retirement Risk and Portfolio Choices

State taxes and living costs aren’t the only pieces shaping a comfortable retirement. Many advisors focus on minimizing equity exposure as clients get older. However, research from 2Pi Financial indicates that most people might need a balanced level of equities—particularly if they don’t have massive nest eggs.

A purely age-based approach to lowering risk can sometimes reduce potential returns too sharply. 2Pi Financial suggests looking at your future earning potential relative to your current wealth. A 65-year-old who still plans to do part-time consulting might take on more equity risk than a 40-year-old inheriting a trust fund with no additional earnings in sight.

If you’re curious about common pitfalls of age-based funds, check out our piece on the hidden risks of target-date retirement funds. Such funds can be a straightforward option, but they sometimes overlook personal factors that matter more than just your birth year.

How the 2Pi Financial Planner Helps

At 2Pi Financial, you’ll find more than just typical retirement advice. Our approach highlights how much risk might be right for you, based on your future earnings and overall wealth capacity. We believe a thorough, personalized strategy often beats one-size-fits-all portfolios.

If you’d like to see how adjusting your retirement age, savings rate, and risk tolerance can affect your long-term outlook, check out the Two Pi Financial Planner. This tool reveals how changes in your assumptions can improve the probability that your plan will hold up, all while factoring in inflation and your comfort level with the stock market.

Bottom Line

Choosing between NY, NC, or FL boils down to your financial goals, desired climate, and community style. Whether you lean toward New York’s cultural richness, prefer North Carolina’s moderate living costs, or love Florida’s low-tax setting, remember that an aligned investment approach is just as critical as location.

If you want additional insights into keeping more of your retirement income, explore how to minimize taxes on your retirement income. Making informed adjustments can boost your peace of mind—and help you maximize your golden years in whichever state you choose.