Forbes Identifies Best Places to Retire in 2025: Low Tax Burdens and Affordability Take Center Stage
Forbes has released its highly anticipated list of the best places to retire in 2025, with a notable emphasis on locations offering low state tax burdens and affordable living costs that can help retirees stretch their fixed incomes. Unlike many other retirement rankings, Forbes presents its selections in alphabetical order rather than numerical rankings, reinforcing the publication’s philosophy that “anybody on our list is a tie for first place,” according to longtime Forbes contributor William Barrett, who architects the publication’s retirement lists, as reported by Next Avenue.
The 2025 edition of the list evaluates 800 localities with populations over 10,000, measuring factors including tax climate, housing affordability, cost of living, healthcare access, natural disaster risk, and quality of life indicators. This year’s selections reflect growing concerns about economic stability and financial security in retirement, with greater weight given to locations where retirement savings can stretch further.

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Tax Advantages Remain Top Priority
The Forbes analysis places significant emphasis on tax considerations, recognizing that state tax burdens can substantially impact retirement finances. Several states with no income tax, including Florida, Texas, and Wyoming, feature prominently in the selections. Other highlighted locations benefit from state policies that specifically favor retirees, such as exemptions on retirement income or Social Security benefits.
“The pandemic could influence retirement location decisions in other ways, too, which fortuitously largely align with how we’ve traditionally approached our list,” Barrett noted in earlier reporting on retirement trends. “For example, some Boomers who haven’t financially suffered may need their savings to stretch further as they help out millennial kids who have taken a hit,” according to a previous Forbes retirement analysis.
College Towns Continue to Shine
Despite pandemic-related concerns about access to cultural and educational amenities, college towns continue to feature prominently in Forbes’ retirement recommendations. The publication notes that over one-third of its selected locations are in college towns, which typically offer rich cultural scenes, lifelong learning opportunities, and healthcare resources connected to university medical systems.
Iowa City, Iowa, and Pittsfield, Massachusetts, received particular distinction by appearing on both of Forbes’ retirement lists – the primary “Best Places to Retire” list focused on affordability and the lifestyle-centered “Best Places to Enjoy Your Retirement” list. This dual recognition highlights these communities’ exceptional balance of financial advantages and quality of life amenities.
Healthcare Access Gains Importance
Access to quality healthcare has gained increased prominence in this year’s analysis, reflecting heightened health awareness following the pandemic. Forbes uses the metric of doctors per capita as a proxy for overall healthcare quality and availability, recognizing that proximity to medical resources becomes increasingly important as retirees age.
The publication also evaluates cities on factors that promote healthy lifestyles, including air quality, walkability, and opportunities for physical activity. Cities that scored well in these categories tend to have robust park systems, pedestrian-friendly infrastructure, and recreational amenities that support active aging.
Climate Considerations Evolve
In contrast to some other retirement rankings that heavily prioritize warm weather, Forbes takes a more balanced approach to climate considerations. “Weather is not a big factor for us,” Barrett explained, acknowledging that climate preferences vary widely among retirees. Instead, the publication gives greater weight to climate resilience and natural disaster risk assessment.
This approach has resulted in a geographically diverse selection of retirement destinations across the country, from coastal communities to mountain towns and heartland cities. The variety reflects the publication’s recognition that ideal retirement locations are highly personal choices influenced by individual preferences, family considerations, and lifestyle priorities.
Housing Affordability Crisis Impacts Rankings
Rising housing costs have significantly impacted this year’s rankings, with traditional retirement havens like Florida seeing reduced representation due to affordability concerns. “Home prices have skyrocketed across Florida,” noted one retirement analyst. “There have been more natural disasters and homeowners insurance has been on the rise.”
This trend has created opportunities for previously overlooked locations with stable housing markets to gain recognition. Several Midwest and Southern locations feature prominently in the 2025 list, offering attractive combinations of affordable housing, reasonable property taxes, and lower overall cost of living compared to coastal retirement destinations.

Looking Beyond the Lists
While Forbes’ retirement rankings provide valuable guidance, the publication emphasizes that individual priorities should ultimately drive retirement location decisions. “What’s important to one person may not be important to the next,” Barrett noted, encouraging readers to use the rankings as a starting point rather than a definitive prescription.
For those considering relocation for retirement, financial experts recommend conducting personal visits to potential destinations, researching state-specific tax implications for various types of retirement income, and carefully evaluating healthcare networks before making decisions. The ideal retirement location ultimately depends on individual financial circumstances, health needs, family considerations, and lifestyle preferences.
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