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8 States to Retire For Less Than 45K a Year

March 10, 2026 · Retirement Life
Reading glasses and a pen on a desk with a financial chart.
A hand-drawn financial growth chart on a wooden desk illustrates the path to an affordable retirement.

Financial Comparison of the 8 States

To help you visualize the differences, here is a breakdown of how these eight states compare regarding overall affordability and tax treatment. Keep in mind that housing prices fluctuate, but these states consistently remain at the bottom of the national pricing index.

State Cost of Living Index (100 = Nat’l Avg) Social Security Taxability Retirement Account Taxability
Mississippi 85.0 Exempt Exempt
Arkansas 88.5 Exempt Partially Taxed
Oklahoma 86.0 Exempt Partially Taxed
Alabama 88.0 Exempt Fully Taxed (Pensions Exempt)
West Virginia 87.5 Exempt (for most) Fully Taxed
Iowa 89.0 Exempt Exempt (Age 55+)
South Dakota 93.0 Exempt (No State Tax) Exempt (No State Tax)
Indiana 90.0 Exempt Fully Taxed (Flat Rate)
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