Why Retirees Are Moving to Lower-Tax States

Property taxes are taking a big bite out of homeowners' wallets, and for retirees, that expense is proving unsustainable. Sky-high property taxes in metro areas like New York City, Philadelphia, and Chicago are driving retirees out and fueling an internal migration to states with lower costs of living.

A recent analysis by John Burns Real Estate Consulting highlights the most and least tax-friendly states in the U.S. Based on the latest U.S. Census Bureau's American Community Survey, some areas are seeing an exodus of older Americans, while others are welcoming them with open arms.

If you're a homeowner looking to relocate, here’s what you need to know about property taxes, retiree migration, and where your dollar stretches the furthest.

Why Property Taxes Are Pushing Retirees to Move

Property taxes are based on a home's value and the land it sits on, and they fund essential services like schools, road maintenance, and local governments. However, in some states, these taxes are becoming a major financial burden.

According to John Burns' research, areas with the highest property tax rates—above 2% of a home's value—include large swaths of:

• New York
• New Jersey
• Illinois
• Philadelphia
• Texas (certain areas like Houston and San Antonio)

As John Burns, CEO of the consulting firm, noted, "Property taxes are a huge expense, especially for retirees. We see a lot of retirement outmigration from the states in dark red on this map."

For homeowners looking to stretch their retirement income, these high costs make relocating to lower-tax states an attractive option.

Where Are Retirees Moving?

While many retirees are leaving high-tax states, they're not just moving anywhere—they're strategically picking locations with better affordability, mild weather, and a high quality of life.

The data highlights several key retirement hotspots:

Top 5 States Attracting Retirees

1. Florida – The top retiree destination, despite property taxes not being the lowest.
2. Texas – With no state income tax, Texas ranks #2 for inbound retiree migration.
3. Arizona – A popular choice for warm weather and relatively low housing costs.
4. North Carolina – Affordable housing and a moderate climate make it increasingly attractive.
5. South Carolina – Myrtle Beach, SC, in particular, is emerging as a retiree magnet.

Up-and-Coming Retirement Destinations

• West Virginia – Boasts high affordability and low property taxes.
• Charleston, SC & Provo, UT – Both feature property tax rates under 0.5%, making them popular choices.
• Wilmington & Raleigh, NC – Seeing significant increases in the 65+ population.

With these shifts, experts like Chris Porter, Senior VP at John Burns Real Estate Consulting, note that "the Carolinas are moving up the list for sure over time."

How Family Ties Influence Retiree Migration

While affordability is a primary factor, another key driver in retiree migration is family connections.

According to Porter, retirees often follow their adult children and grandchildren. If younger professionals can’t afford over 2% in property taxes in places like Illinois or New York, they may relocate to more tax-friendly states—and their parents are likely to follow.

This trend suggests that retiree migration isn’t just about taxes; it’s about maintaining family connections while seeking a better quality of life.

Bottom Line

If rising property taxes have you reconsidering where you call home, Orange County might be your next best move. While California has a reputation for high taxes, its Proposition 13 law keeps property tax rates relatively stable, making homeownership more predictable. Plus, with stunning coastal views, a thriving community, and endless lifestyle perks, Orange County is an incredible place to enjoy your next chapter.

If you’re thinking about buying or selling, let’s chat about how we can help you make the smartest move. Reach out today!

Reference: Farberov, S. (2025, March 7). Older Americans are moving out of these states as property taxes soar.