Moving to a state with no income taxes may seem like a no-brainer for many retirees. Texas and Florida are probably the classic examples of places that have built up a reputation for being "cheap" retirement destinations.

But a lack of income tax isn't the full story. Every state has to fund itself somehow, and the ones that skip income tax usually make it up through property and sales taxes. Think of it as a hidden cost trap that could reshape your retirement.

Texas, for instance, has the seventh-highest property tax rate in the country, according to the Tax Foundation (1), which could diminish its appeal for retirees who depend on property investments and rental income.

If you're planning to move for your retirement, you may want to consider the total tax burden of any state. With that in mind, here are the top three best and worst states to retire in 2026.

To find the best states for retirees, SmartAsset (2) analyzed all forms of taxation, from property taxes to sales and inheritance taxes, and found that states like Georgia, Wyoming and Nevada topped the list.

These states were labeled "Very Tax Friendly" for retirees. While they might fly under the radar to many retirees, the lower total tax burden coupled with lower cost of living make them ideal destinations for anyone looking to move for retirement in 2026.

It's also worth noting that Florida was included in this basket of tax friendly states, but SmartAsset failed to account for factors beyond taxation that have made this a relatively less attractive destination for older Americans in recent years.

Climate change and the rising number of extreme weather events, for example, have pushed many property insurance firms to abandon the jurisdiction, pushing premiums higher for ordinary retirees, according to the Miami Herald (3).

Coupled with the rapidly rising cost of living, Florida's appeal as a retirement destination is quickly fading, according to The Wall Street Journal (4). Nevertheless, the Sunshine State still has a lot to offer older Americans and retirees when compared to the worst states on SmartAsset's list.

California, Connecticut and Vermont had some of the highest overall tax burdens for retirees, according to SmartAsset's analysis. These states offered a mix of minimal, or no, retirement income tax benefits and estate, property and sales taxes that are not "friendly" to retirees.

California (5), for example, fully taxes any income from retirement accounts and pensions at rates that are among the highest in the U.S. Additionally, while California does not tax Social Security benefits, it has some of the highest sales taxes in the nation.

Given that those three states are also the third-, eleventh- and twelfth-most expensive states to live in, according to the Missouri Economic Research and Information Center (6), you can see why many retirees would struggle to make ends meet in these locations.

The good news is that if you live in any of these states and don't feel comfortable leaving, you can still enjoy a good retirement with a few clever money moves.

If you're reluctant to downsize or move in retirement, you're not alone. In fact, Pew Research Center (7) found that 60% of adults over the age of 65 wanted to age in their own homes, perhaps with the assistance of a caregiver.

If you're part of that cohort but worried about the cost of living and taxes in your state, you can plan ahead to mitigate these issues. A few savvy financial maneuvers can help you offset much of the tax burden while a robust annual budget can help you navigate the cost-of-living crisis.

You don't need to plan for these moves alone, hiring an expert can help you pull these strategies off with confidence. An experienced tax or financial advisor can also help you find special tax credits and write-offs that offer retirees some tax relief.

And the need for an expert financial copilot increases if you're relatively affluent. Managing withdrawals, minimizing tax exposure and ensuring long-term sustainability often requires greater coordination and strategic planning.

If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning.

Simply answer a few questions about your savings, retirement timeline and overall investment portfolio. From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.

WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.

We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.