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Key Takeaways
- Many of the best retirement destinations in the West have housing costs that are lower than the national average.
- Washington and Alaska have no state income tax, which can help offset higher housing costs in cities.
- Washington's capital gains tax doesn't apply to gains from retirement savings accounts.
- In smaller or remote areas in the West, retirees may need to travel to access specialty health care or cultural amenities, which can increase costs.
Retirees in search of the best place to settle down for retirement have a huge variety of options. The western U.S. is an excellent choice for many seeking healthy, active lifestyles. Investopedia's retirement destinations for Americans focus on Alaska, Washington, and Wyoming.
Top Retirement Destinations in the Western U.S.
The nine best retirement destinations in the western U.S. are, in alphabetical order:
- Casper, Wyoming
- Cheyenne, Wyoming
- Evanston, Wyoming
- Juneau, Alaska
- Omak, Washington
- Pasco, Washington
- Pomeroy, Washington
- Spokane, Washington
- Vancouver, Washington
We looked at the following states to make our picks: Alaska, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Wyoming. However, in some Western states, retirees must choose between affordability, especially housing, and access to cultural amenities or health care facilities.
Cost of Living and Financial Considerations for Retiring in the West
Housing prices in the West are generally affordable, especially outside of California or major cities like Seattle. For example, the average home value in Evanston was $304,759 in February 2026. In Pomeroy, it was $251,522, and in Casper, it was $301,892. All of these are lower than the national average of $360,591.
Some cities and larger towns, such as Vancouver, Washington, or Juneau, Alaska, have higher home values, which increase the cost of living for retirees. But these higher prices are offset by other financial benefits like the lack of state income tax in Washington and Alaska, which keeps costs down for retirees. Retirees in these areas with higher housing prices often also have access to other budget-friendly amenities, such as public transit systems in Vancouver and Pasco.
Healthcare is an expense that retirees must budget carefully for, and difficulty accessing healthcare can increase these costs. All the retirement destinations on this list have local hospital systems, as well as other medical facilities. However, smaller or more remote areas, such as Juneau or Pomeroy, offer limited health care facilities. This can increase costs for retirees who must travel to access specialty care.
People who want to retire in the western U.S. must think carefully about the lifestyle they want to live and how that will impact their everyday costs. Western towns and cities are often known for their active lifestyle. Retirees who want an active, outdoor lifestyle can access that without needing to budget for a lot of travel.
On the other hand, retirement destinations like Pomeroy, Washington, or Evanston, Wyoming, have manageable housing costs but fewer local arts and entertainment options. Retirees who value access to things like art galleries and theaters may end up spending more on travel to enjoy those amenities in other areas.
Tax Benefits of Retiring in Washington State
Five out of nine places on this list are found in Washington State, and that isn't an accident. Washington is a great tax destination for retirees. There is no state income tax, which can significantly reduce retirees' taxes.
The state does levy a capital gains tax, but it doesn't apply to capital gains from retirement plans such as pensions, 401(k)s, and IRAs. Washington also has a modest 0.75% effective property tax rate, which is helpful for retired homeowners on a fixed income.
The Bottom Line
Retiring in the West can give retirees access to lots of outdoor, active recreation, which can contribute to healthy aging while keeping retirement fun. Many of the best places to retire in the West have affordable housing costs; those with more expensive housing often balance out those higher costs with other financial benefits like no state income tax or easy access to public transit.
However, depending on the town or city that retirees choose, they may end up with more limited access to cultural destinations or health care facilities. This can lead to higher spending to access these amenities in spite of low housing prices.
Read the original article on Investopedia
