The allure of retiring to Florida can be strong. Palm trees, sandy beaches, warm weather and zero income tax drive retirees in droves.
But for some of them, Florida isn’t what they expected. Sure, they save money on income taxes, but the hefty homeowners’ association fees and skyrocketing insurance premiums more than cancel that out. That doesn’t even include the hurricanes, persistent humidity, heavy traffic and overcrowding.
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If you’re ready to say goodbye to Florida’s heat and high HOA fees, here are four half-back states that may be right for you.
Why Georgia is a top pick for ex-Florida retirees
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Georgia may tax your income, but it offers other advantages that make it appealing to disillusioned Florida residents, including no tax on Social Security benefits, no estate or inheritance tax and low property taxes. There’s also the Georgia homestead exemption, which lowers property taxes for homeowners through the reduction of some county and school taxes. It is offered at a set amount by the state of Georgia, but some counties offer higher amounts. People aged 65 and older may be granted an additional exemption.
Beyond taxes, Georgia offers warm weather without the extremes of Florida. Winters are mild, with temperatures dropping to around 60 degrees. Summers are hot, with temperatures reaching into the 90s, but not as humid as Florida. Homes are more affordable in the Peach State. A two-bedroom house costs about $335,358, while a one-bedroom rental is around $1,440 per month. That compares to $378,126 and $1,693, respectively, in Florida.
Georgia also gives retirees something that Florida can’t: geographic diversity. Retirees can live near the historic streets of Savannah or in the peaceful Blue Ridge Mountains. In Georgia, you get it all: mountains, the coast and small, charming towns dotted all over the state.
North Carolina: Milder seasons without the humidity
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You won’t get the year-round summers that you do in Florida, but you also don’t have to worry about the oppressive humidity in the Tar Heel state. North Carolina offers retirees a four-season climate, but milder. Temperatures hover around 50 degrees in the winter and 90 degrees in the summer.
While North Carolina taxes your income, it exempts Social Security benefits and doesn’t have an estate or inheritance tax. You can purchase a two-bedroom home for around $340,430 in North Carolina, which is cheaper than in Florida. Prefer to rent? A one-bedroom apartment is about $1,362 per month in the state.
Just like Georgia, you get the best of both worlds in North Carolina — the Blue Ridge Mountains, which offer stunning views and great hiking trails, and the Atlantic coast. Not to mention city life, thanks to Charlotte, home of the Carolina Panthers professional football team and the Charlotte Hornets, its professional basketball team. Plus, it’s even closer than Florida if you’re visiting friends and family in the Northeast.
South Carolina: A taste of Florida closer to home
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South Carolina gives you a taste of Florida with miles of sandy beaches, southern charm, plus a slice of the Blue Ridge Mountains. Home to historic coastal cities and pristine golf courses, South Carolina is a popular destination for half-back retirees because of the mild weather and low cost of living. Temperatures during the winter are around 60 degrees; In the summer, they hover around 90 degrees.
South Carolina taxes your income, but you don’t pay taxes on your Social Security. Plus, you can deduct up to $15,000 of your individual income or $30,000 for couples filing jointly. Your heirs won’t have to worry about paying an inheritance tax. The average cost of a two-bedroom home is $309,323, while a one-bedroom apartment goes for $1,412 per month.
Tennessee: No income tax and mountain living beyond the coast
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You won’t find sandy beaches in Tennessee, but you will find a mix of rolling hills, mountain peaks and the birthplace of country music. Home to Dolly Parton’s theme park, Dollywood, Tennessee offers retirees a mild climate, a low cost of living and quick access to friends and family in the Northeast. In Tennessee, retirees can choose to live in the mountains of Gatlinburg or Pigeon Forge, or at the center of world-class music culture in the rolling hills of Nashville.
Just like Florida, Tennessee doesn’t have a state income tax, nor does it tax Social Security or withdrawals from retirement accounts, such as 401(k)s and IRAs. There is no inheritance tax and property taxes are low. You can get a two-bedroom home for an average of $338,769. Monthly rent for a one-bedroom apartment is $1,365.
Is a ‘half-back’ move right for your retirement?
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Florida may have been your lifelong dream for retirement, but don’t beat yourself up if it didn’t work out. You aren’t alone. The good news is there are plenty of half-back states you can call home. Some offer you the sandy beaches of Florida, warm summer months and a vibrant coastal lifestyle. Others offer geographic diversity, a lower cost of living and proximity to family and friends.
But before you move to one of these half-back states, do your homework, crunch the numbers and test drive before making it permanent.
