How Much Money to Retire by State Calculator 2025 – Cost of Living
Calculate retirement savings needed by state based on cost of living. Compare how much to retire in California, Florida, Texas, New York vs. other states in 2025.
How Much Money to Retire by State Calculator 2025
Introduction
Retirement savings needed varies MASSIVELY by state. To maintain a $50,000/year lifestyle:
- Mississippi: $1.25M
- California: $2.1M
- Difference: $850,000!
The Retirement by State Calculator shows how location choices impact your FI number.
Cost of Living Multipliers
Baseline: $1M in an average state = $50k/year @ 4% withdrawal
| State Category | Multiplier | Example States |
|---|---|---|
| Ultra-Low Cost | 0.85× | MS, AR, OK, KS |
| Low Cost | 0.90× | TN, AL, SC, IN |
| Average | 1.0× | NC, OH, GA, TX |
| High Cost | 1.25× | WA, CO, OR, IL |
| Very High Cost | 1.50× | NY, MA, NJ |
| Extreme Cost | 1.75-2.0× | CA, HI |
State-by-State Examples
Florida: $1.35M for $50k/year lifestyle
Pros:
- No state income tax
- Moderate housing ($300k median home)
- Warm climate
Cons:
- Insurance expensive (hurricanes)
- High property taxes in some counties
- Summer heat/humidity
Retirement Budget:
- Housing: $1,500/month
- Healthcare: $800/month (supplement)
- Food: $600
- Utilities: $200
- Entertainment: $400
- Total: $3,500/month × 1.08 = $45,360/year
FI Number: ~$1.35M (@ 3.5% withdrawal)
California: $2.1M for $50k/year lifestyle
Costs:
- Median home: $700k+
- Property tax: 1.0% ($7k/year)
- Income tax: 9.3% bracket
- Gas: $5+/gallon
Budget:
- Housing: $2,800/month (rent) or $3,500 (mortgage)
- Healthcare: $900
- Food: $800
- Utilities: $300
- Total: $4,800/month = $57,600/year
Plus state income tax on withdrawals: +9.3%
FI Number: ~$2.1M
Texas: $1.4M for $50k/year lifestyle
Pros:
- No state income tax
- Moderate housing (varies wildly by city)
- Strong economy
Cons:
- High property taxes (2.5-3%)
- Healthcare costs
Budget:
- Housing: $1,800/month
- Healthcare: $850
- Food: $650 -Total:** $3,800/month = $45,600/year
Tennessee: $1.2M for $50k/year lifestyle
Pros:
- No income tax
- Low cost of living
- Mild climate
Budget:
- Housing: $1,400/month
- Healthcare: $750
- Food: $550
- Total: $3,200/month = $38,400/year
FI Number: ~$1.2M
Hidden Costs by State
State Income Tax Impact
9% state tax on $50k withdrawals = $4,500/year
Over 30-year retirement: $135,000 more needed in CA vs. TX/FL.
Property Tax
Texas: 2.5% on $400k home = $10,000/year Florida: 1.0% on $400k = $4,000/year Difference: $6,000/year × 30 years = $180,000
Healthcare Costs
Variation: 20-40% between cheapest and most expensive states
Medicare Supplement in CA: $220/month Same plan in TN: $140/month Lifetime difference: $28,800
Best States for Low-Cost Retirement
Top 10 (Lowest FI Number Needed):
- Mississippi - $1.25M for $50k lifestyle
- Arkansas - $1.28M
- Oklahoma - $1.30M
- Kansas - $1.32M
- Alabama - $1.34M
- Tennessee - $1.35M
- South Carolina - $1.37M
- Indiana - $1.38M
- Missouri - $1.39M
- Florida - $1.40M
Worst States for High-Cost Retirement
Top 5 Most Expensive:
- Hawaii - $2.5M for $50k lifestyle
- California - $2.1M
- New York - $1.95M
- Massachusetts - $1.85M
- New Jersey - $1.80M
Tax-Friendly vs. Tax-Hostile States
Tax-Friendly (No Income Tax):
- Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming
Tax-Hostile:
- CA: 9.3% on $50k+ income
- NY: 6.5%
- MN: 7.05%
- OR: 9%
Impact: $3,000-$5,000/year × 30 years = $90k-$150k
Geographic Arbitrage Strategy
Earn in High-Income State, Retire in Low-Cost State
Example:
- Work in CA/NY, earn $150k, save aggressively
- Retire to FL/TN/TX
- Reduce cost of living by 30-40%
- FI faster + more comfortable retirement
FAQ
Q: Should I move states just to retire cheaper? A: Consider lifestyle fit first, cost second. Saving $10k/year doesn't matter if you're miserable.
Q: What about healthcare access? A: Research hospital quality and specialist availability. Rural cheap states may lack top-tier care.
Q: Can I split time between states? A: Yes, but be aware of tax residency rules (183-day test).
Q: Do cheaper states have worse quality of life? A: Not necessarily. Many low-cost states (TN, SC, FL) have excellent amenities and communities.
Related Calculators
- Financial Freedom Calculator: /calculator/111-financial-freedom-calculator-2025
- Retirement Savings: /calculator/02-retirement-savings-calculator
Conclusion
Your retirement location is one of the biggest financial decisions you'll make. The difference between retiring in Mississippi vs. California is $850,000—or 8-10 extra years of work.
Use the Retirement by State Calculator to model different locations. Visit states you're considering for extended periods (not just vacation) to test livability. The right state can accelerate your FI timeline by a decade.