5 Best States to Retire On Social Security

4. Iowa

Insider Monkey Rank: 3.95

Cost of Living Index: 89.9

Health Index: 101.4

Tax Friendliness: Moderately Tax-friendly

Crime Rate: 303.5 per 100k

One of the best states for retiring on social security is Iowa. Seniors enjoy living costs that are 10.1% lower than the US average. Meanwhile, all social security income is exempted from taxation at the state level. Come 2024, Iowans will also be exempted from paying state taxes on retirement income for tax year 2023. A downside is that property tax rates are quite high in the state, and there is an inheritance tax as yet.