Pillar Guide
Best Places to Retire in the U.S. by ZIP Code
How to evaluate U.S. ZIP codes for retirement using Census ACS5 data — age structure, healthcare access, cost of living, and the variables that actually matter to retirees.
Last updated May 2026 · Sourced from U.S. Census Bureau ACS5 (vintage 2023)
The variables that actually matter for retirement
Most published "best places to retire" lists optimize for marketing rather than demographic reality. The variables that actually matter for retirees are: age structure (the 65+ share of the population, captured in ACS Table S0101), median household income for retirees, cost of living (housing and healthcare), state tax treatment of retirement income, and proximity to a high-quality hospital system.
City Zip Compare reports age structure and cost-of-living variables for every ZIP, and we surface these on every state and county page so retirees can build their own comparisons rather than trust a generic list.
Where the 65+ population concentrates
Florida is the canonical retirement state, but the actual geographic distribution of 65+ Americans is more complex. ACS5 vintage 2023 shows the highest state-level 65+ shares in Maine (22.4%), Florida (21.6%), West Virginia (21.4%), and Vermont (21.3%). These states have a mix of in-migration (Florida) and aging-in-place (Maine, Vermont, West Virginia).
ZIP-level concentrations are even more striking. Parts of Sumter County, FL (the Villages) have 65+ shares above 80%. Parts of southwest Florida, the Carolinas Outer Banks, and Arizona retirement communities like Sun City consistently exceed 60%.
Tax treatment is the underrated variable
Retirement income tax treatment varies dramatically by state. Florida, Texas, Tennessee, Nevada, South Dakota, Wyoming, Washington, New Hampshire and Alaska have no state income tax. Pennsylvania, Mississippi and Illinois exempt all retirement income (pensions, 401(k), IRA) from state tax. At the other extreme, several high-tax states fully tax retirement income.
This is not captured in ACS data — but it dramatically changes the after-tax cost of living calculation, often by more than the entire ZIP-level rent variation.
How to build your own retirement shortlist
Use City Zip Compare's state pages to filter on cost-of-living and median income. Use ZIP pages to evaluate specific neighborhoods (housing cost, age structure, commute proxies for traffic). Use the /compare tool to stack candidate ZIPs against each other on the metrics that matter to you. Then verify state tax treatment and hospital access independently.