Retirees are leaving Arizona in droves (and going to these 5 states instead)

Arizona has long been one of the country's top retirement destinations, thanks to warm winters, no tax on Social Security, and a lifestyle built around golf courses and desert scenery. But a growing number of retirees who moved there in the past decade are having second thoughts, as surging homeowners insurance costs, dangerously hot summers, and rising home prices in Phoenix and Scottsdale start to outweigh the appeal.

Arizona homeowners insurance premiums jumped 94% between 2021 and 2025, the fourth-largest increase in the country, and Maricopa County recorded 430 heat-related deaths in 2025, with older adults making up a disproportionate share of them.

Arizona isn't disappearing from retirement plans. It still gained more retirees than it lost in 2025. But tens of thousands left the state that year for greener, and often cheaper, pastures. Here's where they're headed instead.

1. Texas

Texas was the single most popular landing spot for retirees leaving Arizona in 2025, pulling in 1,183 of them, according to moving-data firm HireAHelper. It's not hard to see why: Texas has no state income tax, and its size means retirees can trade Scottsdale's home prices for a fraction of the cost, all while staying in a similarly warm, dry climate.

Houston alone drew 7,287 retirement-age movers in 2025, the third-highest total of any U.S. city, and its size gives retirees access to major medical centers like the Texas Medical Center without paying Scottsdale-level prices for a home nearby.

2. South Carolina

South Carolina had the largest net gain of any state for retirement-age movers in 2025, adding 5,427 residents. Its coastal towns and moderate housing costs are increasingly drawing Arizona retirees, too. Social Security isn't taxed here, and summers, while humid, rarely produce the sustained 110-degree stretches Phoenix sees every year now.

Much of that growth is coming from other high-cost states nearby, including North Carolina, Florida, and New York, but Arizona retirees drawn to golf communities and coastal towns like Hilton Head and Myrtle Beach are increasingly part of the mix, too.

3. North Carolina

North Carolina pulled in more than 17,000 retirement-age movers in 2025, making it one of the top five destinations in the country. For many Arizona retirees, the draw isn't the tax code so much as the people: Adult children have been relocating there for work for years, and parents are following. A milder four-season climate and a lower cost of living than metro Phoenix don't hurt either.

Charlotte has emerged as one of the fastest-growing cities in the region, adding new residents of all ages every day, and its mix of affordable neighborhoods and expanding health systems makes it an easy landing spot for retirees who want walkable communities without big-city prices.

4. Tennessee

Tennessee drew more than 12,000 retirement-age arrivals in 2025 and offers something Arizona can't: zero income tax of any kind, on wages, Social Security, pensions, or retirement account withdrawals. Combine that with a lower cost of living than Phoenix or Scottsdale, and it's easy to see why Tennessee keeps climbing the list.

Beyond the tax savings, cities like Knoxville and Chattanooga offer retirees access to the Great Smoky Mountains and a slower pace than Nashville, all while keeping housing and everyday costs well below what's typical in metro Phoenix.

5. Florida

Florida still attracts more retirees than any other state, but its lead is shrinking fast. It brought in 45,696 retirement-age movers in 2025, but almost as many left, for a net gain of just 815, one of the smallest in the country. Even so, it remains a familiar landing spot for Arizona retirees chasing no income tax and a well-worn retirement infrastructure.

Florida's own homeowners insurance costs have climbed sharply in recent years, which is part of why the state's net gains have flattened out. Still, cities like Naples and The Villages continue to pull in Arizona retirees looking for an established, retiree-oriented community with no income tax to worry about.

Bottom line

Arizona still has plenty going for it, especially for retirees looking to save money in retirement by leaving higher-cost, higher-tax states. California sent more new retirees to Arizona than any other state in 2025, and it's easy to see why: Arizona's flat 2.5% income tax and full exemption on Social Security income are still a serious upgrade from California's 13.3% top rate or Illinois's heavier property tax bills.

For everyone else, though, the math is starting to point elsewhere, as rising insurance premiums, extreme heat, and climbing home prices in Phoenix and Scottsdale make other states look more appealing by comparison.

That shift fits into what housing researchers have started calling "halfback" migration: Retirees who moved to Florida or Arizona for retirement, found it more expensive or extreme than expected, and are now settling in a state that splits the difference between their original home and their first retirement stop. It's a sign that the retirement map is getting more fluid, and that no single state, not even Arizona, can assume it has the market cornered forever.