Is Pennsylvania the Best State for Retirement in the US?
So how does the state of Pennsylvania rate for retirement? Based on our Insider Monkey rankings, Pennsylvania is number six on our list of best states to retire in the US in 2024. Five more states beat this Keystone State to the top due to their combined rankings in healthcare, cost of living, and tax-friendliness.
Nevertheless, Pennsylvania is a good state to retire for seniors and our findings verify it. The cost of living in the state is 4.4% lower than the national average. As of April 2024, home prices in the state were up 7.9% year-over-year. Yet, the median sale price of a home in this state is an affordable $285,700. This is considerably lower than the national median of $426,056, as per Redfin. While the average effective property tax rate is higher than the national average of 0.99%, eligible seniors aged 65 and over can avail expanded property tax or rent rebate of up to a $1,000.
For those looking to rent, Zillow notes that median rent of a two-bedroom apartment in the state is $1,550, lower than the national median of $1,906. That’s not all, Pennsylvania has also made it to our list of states that don’t tax retirement income. This state wont tax your Social Security income, neither will it tax the income coming from your retirement accounts such as 401(k)s and IRAs. Moreover, pension income is also exempt from taxes that comes from an eligible employer-sponsored retirement plan.
This state isn’t just best to retire tax-wise, but it’s also good for seniors in terms of health. Our rankings show that of all the states, Pennsylvania ranks at number 16 when it comes to healthcare. Some of the best hospitals in the state are Lancaster General Hospital, Temple University Hospital, and Hospital of the University of Pennsylvania. Faring well on all major grounds, it is safe to say that Pennsylvania is a retirement-friendly state. Nevertheless, just like there are many pros of retiring to Pennsylvania, there are some cons too. The one thing that may put off retirees choosing this state as their home in their golden years is that it has a humid continental climate. Hot summers and cold winters aren’t exactly ideal for people who prefer milder year-round weather.
Nevertheless, Pennsylvania is one of the best states to retire, especially for those on a fixed-income. If you’re looking for some of the best places to retire in Pennsylvania on Social Security, your best bet are places like Harrisburg, Elizabethtown, Erie, and New Castle. Read our detailed article to see more places to retire on in this wonderful state.