Thinking of retiring to a warm Southern climate? Florida might be top of mind, but I’ll let you in on a little secret: neighboring Alabama is one of the best states to retire, with charming small towns and beach communities. The best places to retire in Alabama are affordable and packed with amenities, so the cost of living won’t break the bank.

Here are the top 10 best cities to consider if Alabama is on your retirement wish list.

Auburn

CITY POPULATION: 76,143

SHARE OF POPULATION 65+: 8.2%

COST OF LIVING FOR RETIREES: 8% below the national average

MEDIAN HOME VALUE: $350,825

MEDIAN RENT: $1,413/month

TAX RATING FOR RETIREES: Tax Friendly

Auburn, Alabama is perhaps best known as the home to Auburn University, but it’s also a lovely place to make home as a retiree. Seniors make up over 8% of the city’s population, with cost of living clocking in at 8% below the national average as well. Median house prices and rental costs also come in below the national average, making Auburn a very affordable city for retirees.

On top of that, you’ll find great active adult communities in Auburn, as well as access to golf courses and arts and culture. And with the University nearby, you may find yourself reinvigorated by the youthful energy that students bring to the city every fall.

Hamilton

CITY POPULATION: 7,042

SHARE OF POPULATION 65+: 24.2%

COST OF LIVING FOR RETIREES: 13.4% below the national average

MEDIAN HOME VALUE: $152,360

MEDIAN RENT: $1,250/month

TAX RATING FOR RETIREES: Tax Friendly

Hamilton is a beautiful small town with a large senior population—almost 25% of the town is over 65—and, perhaps most importantly, low cost of living and housing prices. Hamilton also has some of the lowest property taxes in the state.

In addition to the financial benefits, retiring in Hamilton comes with access to incredible nature. If you love to hike, Hamilton might be the perfect city to retire to in Alabama.

Fairhope

CITY POPULATION: 22,477

SHARE OF POPULATION 65+: 25.6%

COST OF LIVING FOR RETIREES: 3% below the national average

MEDIAN HOME VALUE: $456,147

MEDIAN RENT: $2,100/month

TAX RATING FOR RETIREES: Tax Friendly

Fairhope is a robust city in southern Alabama, just around the bay from Mobile. And speaking of the bay, you’ll get absolutely breathtaking views of Mobile Bay from Fairhope.

But how does it stack up for retirees? Housing costs are a bit higher than the national average, though you might make up for it with a lower cost of living. There’s a large senior population—over 25% of the city is over 65 years old—and you also won’t be far from major cultural centers. Even if you don’t want to travel up to Mobile, there are tons of events and attractions closer to home.

If you love the water—boating, fishing, or just enjoying the beach—Fairhope could be the best city to retire in all of America.

Dothan

CITY POPULATION: 71,072

SHARE OF POPULATION 65+: 19.1%

COST OF LIVING FOR RETIREES: 10.2% below the national average

MEDIAN HOME VALUE: $183,167

MEDIAN RENT: $1,200/month

TAX RATING FOR RETIREES: Tax Friendly

For those debating retiring in Alabama v.s. Florida, the border town of Dothan offers the best of both worlds. You’ll be just half an hour or so from the Florida line in this town, which is also home to the National Peanut Festival, and just five hours from Orlando for big family fun.

Meanwhile, cost of living is way below the national average, with housing costs coming in below average as well. This makes Dothan one of the most affordable places to retire in Alabama.

Huntsville

CITY POPULATION: 215,006

SHARE OF POPULATION 65+: 16.1%

COST OF LIVING FOR RETIREES: 0.01% below the national average

MEDIAN HOME VALUE: $277,985

MEDIAN RENT: $1,495/month

TAX RATING FOR RETIREES: Tax Friendly

You might know Huntsville from NASA’s Marshall Space Flight Center, which attracts plenty of tourism. That makes Huntsville a bustling city with plenty of restaurants and shops, and a generally exciting place to retire!

Financially, Huntsville is just about average—cost of living is in line with the national average, and while home prices are below average, rent is a bit above average. But depending on where you live now, your retirement dollars may go a lot further in Huntsville than other places across the US.

Lincoln

CITY POPULATION: 6,845

SHARE OF POPULATION 65+: 15.7%

COST OF LIVING FOR RETIREES: 3% below the national average

MEDIAN HOME VALUE: $232,474

MEDIAN RENT: $1,495/month

TAX RATING FOR RETIREES: Tax Friendly

If you love cars (or Will Ferrell movies), you may already know Lincoln, AL, home to the Talladega Superspeedway. Also in Lincoln: the International Motorsports Hall of Fame. Even if you’re not a race car fan, you may find yourself attracted to Lincoln’s affordable cost of living and below average housing costs. You may find yourself racing to retire in Lincoln!

Montgomery

CITY POPULATION: 200,603

SHARE OF POPULATION 65+: 16.4%

COST OF LIVING FOR RETIREES: 3.3% below the national average

MEDIAN HOME VALUE: $136,589

MEDIAN RENT: $1,150/month

TAX RATING FOR RETIREES: Tax Friendly

If you’re a military servicemember or veteran, Montgomery might be one of the best places to retire in the whole country thanks to the large number of VA medical care facilities in the city, including the Central Alabama Veterans Health Care System.

Even if you’re not a veteran, Montgomery offers great amenities and a below average cost of living. And whether you plan to buy or rent, Montgomery offers affordable housing, with below average purchase prices and monthly rents.

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Birmingham

CITY POPULATION: 200,733

SHARE OF POPULATION 65+: 15.7%

COST OF LIVING FOR RETIREES: 2.2% below the national average

MEDIAN HOME VALUE: $126,558

MEDIAN RENT: $1,125

TAX RATING FOR RETIREES: Tax Friendly

Birmingham is often listed as one of the best Southern cities to retire. You get all of the benefits of a highly populated city, including dining, shopping, and healthcare options, while enjoying below average cost of living and affordable housing. If you love theater, museums, arenas, and festivals, Birmingham is probably the best spot for you to retire in Alabama.

Gulf Shores

CITY POPULATION: 15,014

SHARE OF POPULATION 65+: 26.5%

COST OF LIVING FOR RETIREES: 5.4% below the national average

MEDIAN HOME VALUE: $462,015

MEDIAN RENT: $2,214

TAX RATING FOR RETIREES: Tax Friendly

If you can stand a bit of tourist traffic, Gulf Shores is one of the best beach towns to live in Alabama, and perfect for retirees. There’s a thriving 65+ population, which will give you access to activities and social opportunities in addition to the wonderful access to water, boating, fishing, and more. While housing costs are higher than average, you make up for it with an active town and below average cost of living.

Foley

CITY POPULATION: 20,335

SHARE OF POPULATION 65+: 31.8%

COST OF LIVING FOR RETIREES: 5.2% below the national average

MEDIAN HOME VALUE: $295,458

MEDIAN RENT: $1,950/month

TAX RATING FOR RETIREES: Tax Friendly

Foley isn’t far from Fairhope, another one of the best towns to retire in Alabama. With a heavy retiree population and a charming downtown district, as well as a below average cost of living, Foley is an affordable and fun place to retire to. Bonus fact: Foley has one of the largest outlet malls in Alabama, the Tanger Outlet Center.

Frequently Asked Questions

We have the answers to your frequently asked questions about retiring in Alabama.

Is Alabama tax-friendly for seniors?

Alabama is super tax-friendly for retirees. The state doesn’t tax Social Security income or pensions, letting older adults keep more of their earnings. That means in Alabama, you get more bang for your buck.

Do seniors in Alabama pay property taxes?

If you’re over 65, you’re exempt from paying the state portion of your property taxes in Alabama. County taxes may still apply.

What benefits do seniors in Alabama get?

In addition to state programs like Medicaid and Medicare, Alabama’s Department of Senior Services offers a number of programs to help with nutrition, disaster preparedness, legal assistance, and even finding part-time jobs.

Where is the best place to retire in Alabama?

Here are some of the top towns to consider if Alabama is on your retirement wish list.

Bottom Line

Should you retire in Alabama? If you’re looking for a warm climate and access to historical landmarks, Alabama can be a great place to live in retirement. But one of the best things about Alabama is its affordability. If you want to stretch your dollars in retirement and get the best value for money, Alabama might be the best state to retire to.

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