The 2025 Social Security COLA Falls Short: Discover 5 Best States to Retire and Offset this Gap

2. South Dakota

Insider Monkey Score: 170

Cost of Living Index: 91.2

Median Home Price: $320,900

Retirement Tax-Friendliness: Very Tax-Friendly

South Dakota has previously topped our list of best states to retire in the US in 2024. It remains one of the most tax-friendly environments for retirees, with no state income tax and a low cost of living. The median home price of $320,900, coupled with its scenic landscapes and outdoor activities, makes it a top choice for those seeking tranquility and affordability.