With a relatively low cost of living, and wide-open spaces that stretch from cactus-dotted deserts to alpine forests, Arizona has long drawn transplants from across the country.¹ In fact, it’s not just a top relocation spot — it’s also one of the most popular states for retirement with 19.3% of the state’s 7.6 million population made up of people age 65 or older, compared to 17.7% across the U.S.^2,3

According to Empower research, almost one-third of Americans plan to save money when they retire by moving to another city or state. Whether someone is looking to stretch their savings, enjoy mild winters, or trade traffic for trailheads, Arizona’s mix of affordability, scenic beauty, and sun makes it easy to see the appeal. Jump to the best places to retire in Arizona, or keep reading to learn what makes the Grand Canyon state a good place to retire.

Is Arizona a good place to retire?

With mild winters, abundant sunshine, and a variety of landscapes, Arizona offers something for nearly every lifestyle, whether that’s hiking in the high country or golfing in the desert. The cost of living in many Arizona towns is below the average of its California neighbor, and more affordable than Florida.⁴ Add in strong healthcare infrastructure in cities like Phoenix and Tucson, and it’s no surprise the state attracts tens of thousands of retirees each year.

Does Arizona offer tax exemptions for seniors?

Arizona is considered relatively tax-friendly for retirees. The state does not tax Social Security benefits, and it exempts up to $2,500 of certain other retirement income.^5,6 It does not tax U.S. military benefits, annuities, or pensions.⁷ While Arizona does have a state income tax, it's a flat rate of 2.5%, one of just 14 states with a flat individual tax income structure.⁸

What property tax benefits are available for retirees in Arizona?

The median property tax rate in Arizona is 0.45%, and the state offers a Senior Valuation Protection Option, also known as a “senior freeze” that allows qualifying homeowners ages 65 and older to lock in the assessed value of their primary residence for up to three years.⁹ Eligibility is based on income and residency requirements and varies by county. Additionally, the state allows partial property tax exemptions for widows, widowers, and individuals with disabilities.¹⁰ 

Best places to retire in Arizona

Here are 10 of the best places for retirees in Arizona based on population, housing, cost of living and healthcare, and amenities.^{11,12,13, 14}

Bullhead City

• Population: 43,000

• Share of population 65+: 32.2%

• Median home value: $301,915

• Cost of living vs. national average: 7% lower

• Cost of healthcare vs. national average: 5% lower

• Amenities score: F

What makes it stand out:

Affordable, relaxed, and close to the Nevada border, Bullhead City combines desert tranquility with access to nearby casinos and medical centers.

Nearby highlights:

Laughlin, NV, Colorado River boating, Lake Mohave, and Davis Camp Park

Flagstaff 

• Population: 78,000

• Share of population 65+: 9.1%

• Median home value: $664,657

• Cost of living vs. national average: 21.6% higher¹⁵

• Cost of healthcare vs. national average: 2.1% higher¹⁶

• Amenities score: F

What makes it stand out:

A four-season mountain town with forests, skiing, and a walkable downtown. Flagstaff is ideal for those who prefer cool summers and active outdoor lifestyles.

Nearby highlights:

Lowell Observatory, Walnut Canyon, Grand Canyon, and Route 66 nostalgia

Gilbert

• Population: 289,000

• Share of population 65+: 10.6%

• Median home value: $579,944

• Cost of living vs. national average: 12% higher

• Cost of healthcare vs. national average: 7% lower

• Amenities score: A+

What makes it stand out:

Once known as the "Hay Shipping Capital of the World," Gilbert has transformed into a vibrant suburb offering a high quality of life and a strong local economy supported by a fast-growing hub for semiconductor manufacturing.^17,18

Nearby highlights:

Riparian Preserve at Water Ranch, Gilbert Historical Museum, art galleries, urban farming, and plenty of hiking trails in the surrounding Sonoran Desert

Lake Havasu City

• Population: 59,000

• Share of population 65+: 35.3%

• Median home value: $471,753

• Cost of living vs. national average: 25% higher

• Cost of healthcare vs. national average: 9% lower

• Amenities score: F

What makes it stand out:

This Colorado River town offers a blend of lake life, desert views, and a strong retiree presence and is home to the London Bridge, which was dismantled in the U.K., shipped to the city and rebuilt, debuting in 1971.¹⁹

Nearby highlights:

Outdoor recreation, boating and jet skiing, and RV-friendly amenities

Phoenix

• Population: 1.7 million

• Share of population 65+: 11.9%

• Median home value: $418,453

• Cost of living vs. national average: 6% higher

• Cost of healthcare vs. national average: 8% lower

• Amenities score: A+

What makes it stand out:

As Arizona’s capital and largest metro, Phoenix blends big-city energy with expansive outdoor access. It's a hub for tech, healthcare, and higher education with nearby Arizona State University, and its own NBA, WNBA, NFL, and MLB teams. It ranks No. 2 in the U.S. (behind Yuma) as the sunniest city in the U.S., with 211 days of sunshine annually.²⁰

Nearby highlights:

Camelback Mountain, Chase Field, Desert Botanical Garden, and weekend escapes to Sedona

Prescott

• Population: 48,000

• Share of population 65+: 40.5%

• Median home value: $609,590

• Cost of living vs. national average: 20.1% higher²¹

• Cost of healthcare vs. national average: 12.1% lower²²

• Amenities score: A

What makes it stand out:

Prescott delivers frontier flavor with 21st-century livability. It offers a historic downtown, community events, and pine-scented trails just minutes away.

Nearby highlights:

Watson Lake, Lynx Lake, Goldwater Lake, Granite Basin Recreation Area, riding trails and the nearby Kaibab, Coconino, and Tonto National Forests

Scottsdale

• Population: 246,000

• Share of population 65+: 26.2%

• Median home value: $849,238

• Cost of living vs. national average: 14% higher

• Cost of healthcare vs. national average: 4% higher

• Amenities score: A+

What makes it stand out:

Scottsdale mixes resort luxury with walkable charm. It’s a draw for retirees seeking top-tier dining, golf, and healthcare.

Nearby highlights:

Taliesin West, McDowell Sonoran Preserve, golf courses, and shopping

Sierra Vista

• Population: 45,000

• Share of population 65+: 21.6%

• Median home value: $299,017

• Cost of living vs. national average: 9% lower

• Cost of healthcare vs. national average: 8.5% lower²³

• Amenities score: F

What makes it stand out:

It’s 77 miles south of Tucson, and provides a gateway to explorations throughout the southern part of the state, including the old mining town of Bisbee, now an artsy enclave, the O.K. Corral in Tombstone, and other Old West sights.

Nearby highlights:

Wineries, hiking and biking trails in the Huachuca Mountains, San Pedro River, bird and wildlife viewing

Surprise

• Population: 168,000

• Share of population 65+: 22.4%

• Median home value: $431,347

• Cost of living vs. national average: 3% higher

• Cost of healthcare vs. national average: 15% lower

• Amenities score: D-

What makes it stand out:

A fast-growing Phoenix suburb with a reputation for clean neighborhoods, low crime, and a strong sense of community. It’s especially popular with active retirees.

Nearby highlights:

White Tank Mountains, spring training ballparks, and Lake Pleasant Regional Park

Tucson

• Population: 554,000

• Share of population 65+: 15.8%

• Median home value: $332,818

• Cost of living vs. national average: 15% higher

• Cost of healthcare vs. national average: 251% higher

• Amenities score: B

What makes it stand out:

A vibrant college town with a relaxed pace and distinctive desert charm, Tucson appeals to nature lovers, creatives, and retirees alike. Residents enjoy 193 sunny days every year, placing it No. 5 on the list of U.S. cities that get the most sunshine.²⁴

Nearby highlights:

Saguaro National Park, Mount Lemmon, University of Arizona, Catalina State Park, and bike-friendly trails

Is Arizona a good place to live?

For many, the answer is yes — and not just in retirement. Arizona’s varied terrain, tax-friendly policies, and overall affordability offer broad appeal, whether someone is relocating for lifestyle, cost, or climate. With growing cities like Gilbert and Phoenix offering job opportunities and healthcare access, and smaller towns like Prescott and Flagstaff delivering scenery and a slower pace of life, the state balances modern convenience with natural beauty.