These Southern States Are Now More Affordable Than Florida for Retirees

For a long period, Florida was the ideal place to retire, with beautiful weather and a slow-paced lifestyle perfect for retirees. Unfortunately, the pandemic led to a mass arrival of new residents into Florida as retirees looked to leave their wintery climates forever. 

As a result, Florida is now one of the most expensive states in the South, which is doubly true if you look anywhere in South Florida like Miami or Broward County, or on the west coast toward Naples. Thankfully, Florida isn’t the only southern state retirees should consider. 

7. Louisiana

With a lower living cost than Florida, Louisiana is known for its lengthy summers and short winters. This is the best of both worlds, where the only winter you will get in Florida is that the weather is not as hot as it is during the summer. Surprisingly, even with its own frequent hurricane threats, Louisiana still has significantly lower home insurance costs. 

Feed Your Soul

The tagline for the last seven years in Louisiana of “Feed Your Soul” is a great way to approach living in the state. Of course, the slogan isn’t nearly as important as the $6,000 exclusion retirees will get around pension income if they are 65 or over. You also don’t have to worry about inheritance and property taxes, which means you can enjoy a state full of wonderful things to do. 

6. Mississippi

Any retirees looking to exit Florida should absolutely look at Mississippi first. With a cost of living as much as 15% cheaper than Florida, it’s an easy alternative if you are considering going somewhere where you’ll have more disposable income to enjoy your golden years. 

Wanderers Welcome

There is a very good reason why Mississippi’s slogan for travelers, “Wanderers Welcome,” is a great line for retirees looking to find a new permanent residence. When you learn that Mississippi has exemptions for Social Security, pensions, 401(k)s, and IRAs from all state taxes, it should come as no surprise that this state is becoming increasingly popular with retirees looking for a moderate climate. 

5. Tennessee

It won’t come as any surprise to learn that Tennessee is yet another state beating Florida on multiple fronts for retirees. This includes a lower cost-of-living, no extreme weather insurance rate hikes, and Florida’s higher retiree number driving up service costs across the state. Meanwhile, Tennessee is seeing slower rate hikes due to the smaller population of those 65 and over. 

Go Volunteers

From the jump, Tennessee tries to find parity with Florida as both states lack an income tax, so retirees don’t have to worry about any taxes on Social Security or retirement accounts. Better yet, Tennessee lacks an estate and inheritance tax, and the state’s property taxes are among the lowest in the nation, especially when compared to Florida.

4. Alabama

Considering that Alabama’s cost of living is as much as 6% less than Florida, there is an instant attraction to the state. You have cities like Mobile and Huntsville that may not be as flashy as Miami or Fort Lauderdale, but they have their unique charm, and you can find plenty of outstanding healthcare facilities and a little bit of history to keep you busy. 

Southern Charm

Compared to Florida’s median home price, Alabama is almost $130,000 less (on average), which is not so insignificant. Looking at housing prices in Huntsville or Mobile compared to Miami, Tampa, and Jacksonville, Alabama gets even more attractive. Alabama’s state income tax is low (no more than 5%) and doesn’t apply to any retirement income. Add property tax breaks for seniors, and there are plenty of reasons to give Alabama and its southern charm a long look. 

3. South Carolina

One of the most important reasons for retirees to consider South Carolina is that property taxes are significantly lower than those in Florida. As these increases harm Florida retirees and their savings, moving to South Carolina could preserve thousands yearly. Better yet, South Carolina offers world-class golfing, plenty of beaches and coastline, and a mild climate that rarely sees snow. 

Less Expensive Housing

Compared to Florida’s $435,000 average home price, South Carolina’s is significantly lower at $287,000, which is a not-so-small amount. This amounts to thousands saved in property taxes, utilities, insurance premiums, and mortgage expenses, which means residents of South Carolina have far more money tucked away to spend on dining out in areas like Charleston or Hilton Head Island. 

2. Texas 

Everything is bigger in Texas, including the reasons for choosing it and not Florida for retirement. One advantage in Texas is that you can find some areas of the state for various climates while remaining more affordable overall. However, many places near Southern Texas offer climates similar to Florida so that you can have beautiful year-round weather. Florida has also seen an average of $6,000 increases in property tax premiums compared to just $2,500 in Texas. 

No Income Tax

One of the most immediate advantages for retirees in Florida was the lack of an income tax, which Texas also offers. Texas won’t tax Social Security benefits, 401(k), or pension accounts. In addition, the $357,000 median home price in Texas is almost $80,000 less than that of Florida. The state also has no estate or inheritance tax, which is great for estate planning. 

1. Georgia

As a warm-weather state, Georgia, especially Southern Georgia, offers a warm-weather climate similar to Florida while having a less expensive cost of living. Like Florida, Georgia also offers a lengthy coastline, so you have plenty of access to water activities that help popularize Florida as a retirement destination. For those who want more land, rural areas of Georgia are also increasingly less expensive than Florida. 

Lower Cost of Living

When you consider that in February 2025, the medium listing price for a home in Florida was $435,000 versus Georgia’s $359,000, it’s immediately apparent just how more affordable Georgia is. Georgia also exempts Social Security income from state taxes and offers up to $65,000 per person in retirement income exclusions for anyone over 65, including pensions and 401(k) accounts.

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