Key Takeaways

• Medium-sized towns have populations between 20,000 and 49,999 people.
• Top medium-sized towns for retirees are found in Alaska, Florida, Iowa, Maine, New Hampshire, Pennsylvania, Texas, and Virginia.
• These towns offer more manageable living costs than large cities or expensive suburbs.
• Alaska, Florida, New Hampshire, and Texas have no state income tax, inheritance tax, or estate tax.
• Medium-sized towns often have good local healthcare access, though retirees may need to travel for specialty care.

Medium-sized towns are some of the best places in the United States for retirees. They offer a balanced mix of fun activities, useful amenities, and privacy. With populations of 20,000 to 49,999 people, they usually offer plenty to do, healthcare facilities, and outdoor recreation, while avoiding the high costs and crowds found in larger towns and cities.

Some of the best medium-sized towns for retirees are found in Alaska, Florida, Iowa, Maine, New Hampshire, Pennsylvania, Texas, and Virginia.

Costs of Retiring in Alaska

The best medium-sized town for retirees in Alaska is the capital city, Juneau. Retirees here benefit from Alaska’s low tax rates, which help keep costs down and make it easier to budget while on a fixed income. Alaska has no individual income tax and an effective property tax rate of 1.07%. There is also no state estate or inheritance tax.

However, retirees in Juneau will need to plan carefully for housing costs. The average home value in Alaska was $387,636 in March 2026, similar to the national average of $366,019.

However, home values in Juneau are higher, at $470,456. Retirees will also need to budget carefully for everyday expenses, as the cost of living in Juneau is also higher than the national average.

Retirees living in rural areas will need to budget for travel to access medical care. As a medium-sized town, however, Juneau has a hospital system and several medical centers located downtown. This can save retirees time and money when accessing healthcare.

Costs of Retiring in Florida

Florida is another tax-friendly destination for retirees. Residents don’t have to pay a state income tax, and the effective property tax rate is a very low 0.74%. There is also no estate or inheritance tax to plan for.

Florida has several medium-sized towns that make great retirement destinations:

• DeLand
• Ormond Beach
• Venice
• Zephyrhills

Housing costs can be steep in Florida’s larger cities. In Miami, for example, the average home value was $579,564 in March 2026. However, in the state’s medium-sized towns, housing is more affordable. Average home values in Deland and Venice, for example, are $332,928 and $379,805, respectively.

Everyday expenses in these areas are also manageable for retirees; the cost of living in Ormond Beach is slightly lower than the national average, and slightly higher in Venice. Zephyrhills is particularly affordable, with a cost of living that is 14% below the national average.

Because Florida is such a popular retirement destination, the state has plenty of medical facilities, even in these medium-sized towns. Even specialty care is highly accessible; cities like Orlando, Daytona Beach, Fort Myers, and Tampa are only a short drive away. Having these cities nearby can also provide retirees with access to more amenities and cultural attractions without the need to live in a crowded, urban area.

Costs of Retiring in Iowa

Mason City is the best medium-sized town in the state for retirees and one of the most affordable retirement destinations on this list. The average home value in Mason City is $154,095, well below the national average, and even below the state average of $231,585. Everyday expenses in Mason City are also affordable. The cost of living is 7% lower than the national average, while utility prices are 4% less.

Medical care is also affordable for retirees, at 2% lower than national costs. And even though Mason City has a population of less than 27,000, the town has multiple hospitals, emergency care facilities, and specialists. This easy access to healthcare helps keep costs down for retirees and promotes healthy aging.

Iowa has a state income tax, with a flat rate of 3.8%, and an effective property tax rate of 1.23%.

Costs of Retiring in Maine

Retirees looking for a medium-sized town in Maine will enjoy how affordable Lewiston is. While home values in the state can be high, with an average of $407,566, in Lewiston, the average is only $296,288, well below national levels. Energy and transportation costs are also significantly lower than the national average, helping retirees on a fixed income keep their everyday expenses manageable.

Lewiston has multiple hospital systems in town, and there are several in neighboring Auburn that retirees can easily access. This helps keep medical expenses down. Overall, healthcare costs in Lewiston are 16% lower than the national average.

Retirees will need to budget for Maine’s state income tax, which is graduated and ranges from 5.80% to 7.15% depending on their income. However, Maine’s effective property tax rate is a manageable 0.94%.

Costs of Retiring in New Hampshire

Concord is the best medium-sized town in New Hampshire for retirees. New Hampshire is another tax-friendly retirement destination, with no state income, estate, or inheritance tax. The effective property tax rate, however, is higher than in many other places on this list, at 1.41%.

Housing in New Hampshire can be expensive, with average home values reaching $507,347 in March 2026. Retirees will find that the average home value in Concord is lower, but at $445,979, it’s still higher than the U.S. average. Costs for many everyday essentials in Concord are more affordable, with food prices about 6% lower than the national average and transportation costs nearly 21% lower.

Retirees will need to plan for healthcare costs, which in Concord are over 11% higher than the national average. However, even with a population of less than 45,000 people, Concord still has multiple hospital systems, along with urgent care centers and emergency departments. This makes accessing medical care quick and convenient for retirees.

Costs of Retiring in Pennsylvania

These medium-sized towns in Pennsylvania make attractive retirement destinations:

• Altoona
• Easton
• Lebanon
• Williamsport

Pennsylvania has a state income tax rate of 3.07%. The effective property tax rate is a manageable 1.19%. The average home value in Pennsylvania is $282,736, well below the national average. Retirees will find that housing costs in many medium-sized towns are even more affordable. Average home values in Altoona and Williamsport, for example, are $134,583 and $202,721, respectively.

Everyday essentials in these towns are also highly affordable for retirees on a fixed income. The cost of living in Williamsport, for example, is 2% lower than the national average. Overall, Pennsylvania’s cost of living is about 5% lower than the U.S. average.

This includes the cost of healthcare, which is 6% lower than the national average. Each of these retirement destinations has multiple hospitals and other medical facilities in town, which helps retirees keep costs down even further.

For people seeking additional cultural amenities or access to medical specialists, these towns are within a few hours’ drive of major Pennsylvania cities like Allentown, Pittsburgh, and Harrisburg.

Costs of Retiring in Texas

Katy is located just outside Houston and is the best medium-sized town for retirees who want to settle in Texas. Housing costs in many of Houston’s popular suburbs can be exorbitant; in Bellaire, for example, average home values in March 2026 reached just under $1.2 million. Katy, however, has an average home value of $338,082. The overall cost of living in Katy is 11% lower than the national average. This includes affordable costs for groceries, transportation, and utilities.

Texas is also a tax-friendly retirement destination. The state doesn’t have an income tax, and there is no estate or inheritance tax. The effective property tax rate is 1.36%.

Medical care is an area where retirees will have to watch their spending; healthcare runs about 4% higher than the national average. However, there are plenty of local hospital systems and medical facilities to provide access to care.

Houston is only a short drive away, where retirees will find more cultural amenities and fun nightlife, as well as further healthcare options.

Costs of Retiring in Virginia

The best medium-sized town for retirees in Virginia is Winchester. It’s a 90-minute drive away from Washington, D.C., giving retirees plenty of access to specialty healthcare and cultural destinations while avoiding the bustle of city life.

While Winchester is more affordable than D.C., housing costs are still higher than national averages, with home values in March 2026 averaging $399,457. Utilities in Winchester also run higher than national averages, though transportation and grocery prices are lower.

Healthcare costs in Winchester are about 2% higher than national averages. Retirees can access care at the local hospital or one of the many other medical facilities in town, as well as throughout Northern Virginia. Virginia has a state income tax, with graduated rates ranging from 2.00% to 5.75% depending on income. However, the effective property tax rate is a low 0.77%.

The Bottom Line

Many of Investopedia’s top medium-sized cities for retirees are found in tax-friendly destinations to help retirees keep expenses down. Alaska, Florida, New Hampshire, and Texas all have no state income, inheritance, or estate taxes. Other states, including Florida, Maine, and Virginia, have affordable property taxes with effective rates below 1%.

Medium-sized towns balance affordable housing and lower living costs with access to healthcare facilities and local cultural amenities. Many are within driving distance of larger cities as well.