Should You Retire to Utah?

When you think of the best states to retire to, places like Florida or Arizona may come to mind. But surprisingly, Utah claimed second place as one of the best places to retire, according to a Motley Fool survey and analysis.

Why Utah? For starters, there’s the natural beauty—think canyons, snow-capped mountains, and plenty of outdoor activities like hiking, backpacking, and skiing. And Utah is one of the happiest states in the nation, according to a WalletHub report.

If that’s not enough to win you over, here are more factors to consider — along with a few cons to keep in mind if you’re planning to retire there.

Image source: Getty Images.

What awaits you in Utah?

Utah has a lot going for it. The Beehive State ranks high for retirees when it comes to quality of life and safety. Another big plus? Health. Medicare Guide ranks Utah as the 14th best state for health care for seniors.

Taxes are a mixed bag in Utah, though. You won’t have to worry about estate or success tax, except for federal purposes. And the property tax for owner-occupied homes is just 0.47 percent — which is one of the lowest rates in the country.

But here’s why: Utah is one of the few states that taxes Social Security benefits. However, it only applies to taxpayers above a certain income threshold. And some retirees may qualify for a credit for Social Security benefits to offset the tax burden.

Worried about the cost of living? That’s slightly higher than the national average, according to the World Population Review. Housing costs are about 7% higher than average, but you’ll save on utilities and healthcare, which are about 6% and 10% lower, respectively.

Before you make Utah your forever home, test it out first. Consider spending a few months there — ideally in different seasons — to get a better feel for the weather. Also, get a feel for the lifestyle and culture to see if Utah deserves a spot on your retirement short list.