The Northeast and Mid-Atlantic: Cheap Cities to Retire USA

Retiring in the Northeast on a budget usually requires avoiding the coastlines and looking toward historic industrial cities that have stabilized and now offer incredibly cheap housing.

20. Scranton, Pennsylvania

Scranton provides proximity to major East Coast hubs at a fraction of the cost. The housing market is remarkably affordable. More importantly, Pennsylvania offers some of the most generous retirement tax laws in the nation; the state completely exempts Social Security, public pensions, and private pensions (including 401k and IRA withdrawals) from state income tax.

21. Syracuse, New York

New York state taxes run high, but Syracuse compensates with some of the cheapest real estate in the Northeast. If you rent rather than buy, you avoid the direct sting of high property taxes. The city offers a massive network of hospitals and specialists. New York also does not tax Social Security benefits and offers generous exemptions for other types of retirement income.

22. Erie, Pennsylvania

Situated on the shores of Lake Erie, this city provides waterfront living on a strict budget. Erie offers beautiful summer weather and stunning state parks. Like Scranton, retirees in Erie benefit from Pennsylvania’s total exemption of retirement income from state taxes. The cost of living is incredibly low, allowing a $1,500 budget to stretch comfortably.

23. Cumberland, Maryland

Tucked into the Appalachian Mountains of Western Maryland, Cumberland offers scenic beauty and historic architecture. Housing costs here are drastically lower than the Maryland state average. While Maryland’s tax structure is generally complex, the state recently increased its tax exemptions for retirees, making affordable enclaves like Cumberland even more attractive.