Where are the best liberal small towns to retire in?
Liberal small towns offer a tight-knit community with a progressive vibe.
These towns thrive on diversity, culture, arts, and inclusivity. There’s plenty to do for retirees in these active communities.
Take a look at this list of the 10 best liberal small towns to retire in:
Asheville, North Carolina
Asheville will draw you in with its laid-back charm, thriving arts scene, and active community. It’s set amidst the picturesque Blue Ridge Mountains where you’ll have easy access to hiking trails, waterfalls, and other outdoor experiences.
The city is known for its 30 breweries, River Arts District, and the grand Biltmore Estate. There are also opportunities for learning and friends through the Osher Lifelong Learning Institute at the University of North Carolina Asheville.
Seniors won’t pay tax on Social Security benefits, but there is a moderate flat tax on other retirement income (except for pensions funded by the state).
There are also some senior-friendly property tax breaks in North Carolina for those on a low income.
- Population: 94,589
- Median home value: $486,361
- Median rent: $1,973
- Healthcare rank (state): #33
- Tax burden: 9.9%; 23rd
Burlington, Vermont
Burlington is a beautiful city nestled between the Green Mountains and Lake Champlain. It’s eco-friendly, progressive, and boasts a walkable downtown area featuring art galleries, live music, farmers’ markets, and local festivals that give the town its creative heartbeat.
Healthcare is excellent, with the UVM Medical Center conveniently located in town. Housing includes charming historic homes and nonprofit-supported options for aging in place. You can also enroll in lifelong learning programs through the University of Vermont.
Vermont does tax some retirement income, but low- to moderate-income retirees can qualify for exemptions.
- Population: 44,743
- Median home value: $531,126
- Median rent: $2,098
- Healthcare: Ranked #5
- Tax burden: High; 13.6%; 47th
Iowa City, Iowa
If you're looking for a retirement city filled with progressive and creative thinkers, Iowa City might be the perfect fit for you.
It’s home to the Iowa Writers’ Workshop at the University of Iowa and has been designated as a UNESCO City of Literature.
The city also boasts the Downtown Iowa City Cultural & Entertainment District, where you’ll find interesting sculpture installations, museums, restaurants, bars, independent booksellers, music, shops, and galleries that make the city fun to explore.
Housing is more affordable in Iowa City than in most other cities, but you’re not sacrificing quality of life or great healthcare. Iowa’s healthcare ranked #15 in the US, and the local University of Iowa Hospitals & Clinics is the top in the state.
Though Iowa’s tax burden is ranked near the middle of the pack, that could change as the state moves to a flat 3.8% tax rate this year. Even better, retirement income isn’t taxed by the state, which can help make your money go further.
- Population: 74,828
- Median home value: $297,162
- Median rent: $1,358
- Healthcare: Ranked #15
- Tax burden: 11.2%; 34th
Lawrence, Kansas
Lawrence, Kansas, is known as a college town, but the city also offers entertainment, engagement, and affordable living for retirees. There are plenty of arts, cultural events, and outdoor activities to keep anyone busy.
There are more doctors per capita in Lawrence than the national average, which generally indicates better access to healthcare.
Lawrence also offers more affordable housing, with a median home value of $329,000. Income from Social Security and public pensions are tax exempt in Kansas, but private retirement accounts are taxed.
There’s also no estate or inheritance tax, which could help you keep more money in the family.
- Population: 94,930
- Median home value: $329,400
- Median rent: $1,345
- Healthcare rank: #30
- Tax burden: 11.2%; 33rd
Santa Fe, New Mexico
Santa Fe, New Mexico, is a unique city where old-world charm meets modern living. Founded in 1610, it’s the oldest capital city in the US with history on every corner.
The town is known for its arts, focus on wellness, distinctive Pueblo Revival-style architecture, sunshine, and a fantastic restaurant scene. Extensive biking and hiking trails, as well as a nearby ski resort, make it an ideal destination for outdoor enthusiasts.
Housing falls on the expensive side, with the median home value coming in at $591,223.
The state does tax Social Security income; however, there is an exemption for seniors making less than $100,000 as an individual, or $150,000 as a couple, which results in 86% of seniors not being taxed on Social Security Income.
Other retirement income is taxed, though there is a tax deduction you may be able to apply. Property taxes are generally low, and seniors may be able to freeze the value of their home to reduce property taxes if they’re under a certain income. There is no estate or inheritance tax.
- Population: 87,505
- Median home value: $591,223
- Median rent: $2,045
- Healthcare rank: #32
- Tax burden: 10.2%; 25th
Northampton, Massachusetts
Northampton, Massachusetts, is often cited as the most liberal city in the US.
It boasts a high LGBTQ+ population and an academic atmosphere, situated amid ample green space and historically preserved buildings. There’s a thriving arts and music scene, eclectic shops, interesting restaurants, and a fantastic farmers’ market.
Housing is close to the national average at $479,026, and you’ll find developments geared toward affordable housing for senior living. Healthcare in Massachusetts is ranked #1 in the country due to its high insurance coverage rates, excellent access to healthcare, and outstanding patient outcomes.
As far as taxes go, Massachusetts has one of the highest income tax collection rates, which affects retirees. While Social Security Income isn’t taxed at the state level, other retirement income is taxed at a rate of 5%. Additionally, a 4% tax is applied to income exceeding $1 million. You’ll also see higher property taxes and an estate tax when the value is over $2 million.
Seniors do have the unique ability to reduce their property tax bill by up to $2,000 by volunteering 133.33 hours for the city in a year.
- Population: 29,571
- Median home value: $479,026
- Median rent: $2,406
- Healthcare rank: #1
- Tax burden: 11.5%; 37th
Boulder, Colorado
Boulder, Colorado, is a welcoming town renowned for its beauty, outdoor playground, emphasis on wellness, and environmental stewardship.
Downtown strolls lead you past art galleries, restaurants, and a lively music scene. It also has a strong job market with residents earning 26% higher wages than the national average.
Boulder provides an impressive amount of care for seniors through programs such as Older Adult Services and Programs and the Age Well Centers. You’ll find health and wellness classes, support groups for caregivers, meetups with other older adults, drawing classes, and more.
The major downside is the costly housing. With a median home value of nearly $1 million, it’s out of reach for many people.
Taxes in Colorado are relatively low, with a flat tax rate of 4.55%. Retirees do pay taxes on their retirement income, but there is a generous deduction available to reduce the amount of tax owed. Colorado doesn’t have inheritance or estate taxes.
- Population: 108,250
- Median home value: $992,613
- Median rent: $2,495
- Healthcare rank: #18
- Tax burden: 9.7%; 19th
Eugene, Oregon
Eugene, Oregon, is a picturesque and active community with numerous bike trails to explore, including the surrounding river trails, mountains, and forests. It’s known as Track Town, USA, due to its rich history in the sport of track and field, and it attracts athletes and enthusiasts from around the world.
Eugene’s connection with the local University of Oregon makes it feel like a college town, but its thriving arts scene and walkable downtown area are fun for everyone. There are also numerous craft breweries, wineries, and farm-to-table restaurants.
Housing is expensive, but Eugene is more affordable than many other areas in the state.
Oregon has no sales tax and limits property tax increases on seniors. There’s no tax on Social Security income, but other types of retirement income are taxed.
- Population: 176,654
- Median home value: $482,355
- Median rent: $1,630
- Healthcare rank: #13
- Tax burden: 10.8%; 31st
Flagstaff, Arizona
Flagstaff is a city in Arizona nestled among the pine trees. It offers mountain charm, an active art community, and culture in a surprisingly temperate city (especially for Arizona).
There are 56 miles of trails woven throughout the city, which makes it easy to get out and stay active. Flagstaff has an elevation of 7,000 feet, which grants plenty of clear skies for stargazing and fresh air throughout the year.
But Flagstaff’s desirability isn’t a secret. Homes are more expensive in Flagstaff, with the median home value reaching a steep $664,657.
Flagstaff is favorable for retirees in terms of taxes. There’s no tax on Social Security, no estate taxes, a 2.5% flat tax on withdrawals from retirement accounts, and property tax relief programs for seniors.
- Population: 76,831
- Median home value: $664,657
- Average rent: $2,200
- Healthcare rank: #34
- Tax burden: 9.5%; 15th
Bloomington, Indiana
Bloomington, Indiana, is recognized for its inclusivity, earning the highest score possible on the Municipal Equality Index (MEI) from the Human Rights Campaign Foundation for its inclusive laws, policies, and services for the LGBTQ+ community.
If you’re an outdoor enthusiast, you’ll love the many forests and lakes outside the city. The cost of living is relatively low, with a median home price of $316,973.
Taxes are also low. Iowa has a flat tax of 3.05% and limits property tax increases on seniors. There’s no state tax on Social Security income, but you do pay on other types of retirement income.
- Population: 79,168
- Median home value: $316,973
- Average rent: $2,000
- Healthcare rank: #34
- Tax burden: 9.3%; 13th
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