10 Best Cities to Retire in Michigan in 2026

Michigan, famously shaped like a mitten, is a community-forward midwest state with excellent access to outdoor activities, healthcare, and waterfront living. Seniors looking to retire to Michigan will have many cities and towns to choose from—ones bustling with activity from the local universities and others, known for summer tourism, quietly sitting on the edge of a lake the rest of the year.

Like much of the midwest, Michigan has a low cost-of-living. This is appealing to seniors who wish to live near a tranquil body of water—in this case, a Great Lake—but don’t want to pay the high premiums to live on the coast. The state is also home to thousands of trails for outdoor exploring, making it ideal for hikers, bikers, and campers. While winters are cold, the state’s weather is relatively mild the rest of the year, with many resort towns in the Upper Peninsula to explore for summertime fun. Read on to learn the 10 best cities in Michigan and decide which matches your retirement dreams.

Is Michigan a good place to live for retirees?

Some retirees might be turned off by Michigan’s cold winters, but it’s worth noting that the other seasons are relatively mild, although summer can be humid. Luckily, the state is bordered by four of the Great Lakes, making it easy to find a cool, waterfront spot to relax.

Beyond the lakefront locations, Michigan truly is an outdoor lover’s paradise. Home to over 13,000 miles of state-designated trails, seniors who enjoy hiking, cycling, horseback riding, and other green activities will always find something to do in the Great Lakes State.

Michigan is known for its vibrant and community-focused small towns. If you long to be far away from traffic, noise, pollution, and desire a retirement location with neighborliness and quaint downtowns, Michigan has several of them.

Finally, the state has relatively low housing prices, allowing many seniors to retire near the water without breaking their budget. That said, it’s worth noting that because of the cold winter months, energy bills could be higher than in other places.

Is Michigan tax-friendly for seniors?

Michigan is moderately tax-friendly for retirees. The Great Lakes state does not tax Social Security and offers deductions for seniors on other forms of retirement funds. The primary deduction retirees will want to use is the Lowering MI Costs Plan, which was signed into law in 2023.

While Michigan’s median effective property tax rate is higher than the national median rate—it’s 1.18%—the state sales tax is low, 6%; in addition, there are no additional local sales taxes to worry about.

Do seniors in Michigan pay property taxes over 65?

Yes, seniors over 65 in Michigan pay property taxes. Michigan’s property tax rate is relatively high—1.18%. Some seniors might qualify for the homestead property tax credit. To qualify, your household income must be $60,600 or less and your home’s taxable value must not exceed $136,600. In addition, you need to have owned or were contracted to pay rent while living in a Michigan homestead for at least six months during the year when the property taxes were imposed.

What benefits do seniors get in Michigan?

Older Michiganders have many services available to them. Those who qualify for Medicaid can apply for financial assistance to help with the cost of senior living and senior care. The Michigan Medicaid Home Help Program can assist those with personal care and daily activities to help seniors stay at home rather than be admitted to a nursing home. The Home Help Program can support seniors with domestic chores, laundry, meal preparation and grocery shopping.

The Michigan RX Card is the state’s prescription assistance program, and is available to all residents. The card gives holders discounts on prescription medications at participating pharmacies in the state.

Where is the best place to retire in Michigan?

Michigan is known for its lively and charming small towns, and it has no shortage of them. For those looking to retire in Michigan, it’s important to weigh which amenities are important to you—some places, such as Ann Arbor, are college towns with excellent access to healthcare and cultural activities, but might feel too busy for some retirees. Places like Menominee, however, are much quieter, but there aren’t as many options for dining and shopping. Either way, Michigan is a state known for its stunning beauty and community friendliness—two things most seniors seek during retirement.

1. Midland

CITY POPULATION: 42,547

SHARE OF POPULATION 65+: 20%

COST OF LIVING FOR RETIREES: 14% below the national average

MEDIAN HOME VALUE: $240,729

MEDIAN RENT: $1,350

TAX RATING FOR RETIREES: Moderately Tax Friendly

Midland has a bustling senior community, with over 20% of the population over the age of 60—this means that retirees have lots of opportunities to meet one another and socialize with fellow seniors. Midland is known for its stunning Dow Gardens, a 110-acre botanical garden and forest with a treetop canopy walk.

2. Traverse City

CITY POPULATION: 15,678

SHARE OF POPULATION 65+: 24%

COST OF LIVING FOR RETIREES: 4% below the national average

MEDIAN HOME VALUE: $427,667

MEDIAN RENT: $1,540

TAX RATING FOR RETIREES: Moderately Tax Friendly

Traverse City is a golf lover’s paradise—it’s home to several, including the Wolverine Golf Course, which has sweeping views of East Grand Traverse Bay. The city also has an up-and-coming wine scene, with 40 different wineries to explore and enjoy. Finally, Traverse City is relatively affordable, and has excellent healthcare facilities—Munson Healthcare is the largest network for healthcare in northern Michigan.

3. Petoskey

CITY POPULATION: 5,877

SHARE OF POPULATION 65+: 23%

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

MEDIAN HOME VALUE: $462,161

MEDIAN RENT: $2,000

TAX RATING FOR RETIREES: Moderately Tax Friendly

To Michiganders, Petoskey is known as a summer vacation location—people flock there during the hotter months to enjoy its sparkling water views and sandy beaches. But Petoskey is a fine option for permanent residency—in addition to its natural maritime beauty, it boasts a lively downtown with shops, restaurants, and more. Finally, summer isn’t the only time it shines—autumn is rich with leaves changing color, and in winter, locals often spend time at the local ski and snowboard resorts, such as Nub’s Nob.

4. Marquette

CITY POPULATION: 20,629

SHARE OF POPULATION 65+: 17%

COST OF LIVING FOR RETIREES: 14% below the national average

MEDIAN HOME VALUE: $316,557

MEDIAN RENT: $1,650

TAX RATING FOR RETIREES: Moderately Tax Friendly

Marquette is known for its spectacular natural beauty—it sits on the banks of Lake Superior, where ancient volcanic formations jut out of the water, drawing photographers to the area every year. There are hundreds of trails to explore, either in summer or through cross-country skiing in winter. Those seeking cultural excitement will appreciate the presence of Northern Michigan University, which offers performances, art galleries, sporting events, and more.

5. Holland

COUNTY POPULATION: 34,378

SHARE OF POPULATION 65+: 17%

COST OF LIVING FOR RETIREES: 5% below the national average

MEDIAN HOME VALUE: $342,125

MEDIAN RENT: $1,318

TAX RATING FOR RETIREES: Moderately Tax Friendly

Holland, true to its name, is known for its annual tulip festival each May. The festival is a testament to the town’s bountiful green spaces, which come alive with flowers each spring. Frequently named one of America’s prettiest towns, Holland also has a lower cost of living, a walkable downtown, and an excellent public transportation system—the Macatawa Area Express, or MAX.

6. Grand Rapids

CITY POPULATION: 198,917

SHARE OF POPULATION 65+: 13%

COST OF LIVING FOR RETIREES: 5% below the national average

MEDIAN HOME VALUE: $276,667

MEDIAN RENT: $1,153

TAX RATING FOR RETIREES: Moderately Tax Friendly

Set on the banks of the Grand River, Grand Rapids has lots of amenities—it’s the second-largest city in Michigan—without sacrificing natural beauty. Home to multiple arts and culture venues, retirees can enjoy everything from symphony performances to art museums. Those who prefer outdoor activities will love Grand Rapids’ hundreds of miles of trails, not to mention the riverfront, Reed’s Lake, and Blandford Nature Center, which offers educational programming.

7. Ann Arbor

CITY POPULATION: 123,851

SHARE OF POPULATION 65+: 14%

COST OF LIVING FOR RETIREES: 5% above the national average

MEDIAN HOME VALUE: $472,667

MEDIAN RENT: $1,705

TAX RATING FOR RETIREES: Moderately Tax Friendly

Home to the University of Michigan, Ann Arbor is a bustling college town. Living near a university provides retirees with lots of great amenities: the school has its own museum and theater, as well as renowned health and medical centers. In addition, retirees who love to travel will appreciate being just 30 minutes from Detroit’s international airport.

8. Menominee

CITY POPULATION: 8,488

SHARE OF POPULATION 65+: 24%

COST OF LIVING FOR RETIREES: 20% below the national average

MEDIAN HOME VALUE: $165,179

MEDIAN RENT: $1,100

TAX RATING FOR RETIREES: Moderately Tax Friendly

Nestled in Michigan’s Upper Peninsula, Menominee (say that five times fast!) is a waterfront town that sits on the Green Bay. Menominee is very affordable, giving seniors the opportunity to retire near the shore for a fraction of what they might pay elsewhere. In addition, the town is extremely walkable and features stunning 19th-century architecture.

9. Ironwood

CITY POPULATION: 5,045

SHARE OF POPULATION 65+: 28%

COST OF LIVING FOR RETIREES: 19% below the national average

MEDIAN HOME VALUE: $99,048

MEDIAN RENT: $1,454

TAX RATING FOR RETIREES: Moderately Tax Friendly

Ironwood is incredibly affordable, with Zillow reporting the average home price in 2026 to be about $98,000—ideal for retirees who want their savings to stretch. Ironwood is an excellent spot for outdoor enthusiasts: not only are there numerous trails in the area, but the Black River National Scenic Byway offers camping areas, trails, picnicking opportunities, and more.

10. Grand Haven

CITY POPULATION: 11,011

SHARE OF POPULATION 65+: 29%

COST OF LIVING FOR RETIREES: 5% below the national average

MEDIAN HOME VALUE: $296,961

MEDIAN RENT: $1,153

TAX RATING FOR RETIREES: Moderately Tax Friendly

For those looking for beachside living on a budget, check out Grand Haven. The beaches at Grand Haven State Park are frequently named some of the most beautiful in Michigan. The city is also home to numerous green spaces, with sand dunes, forests, and trails to explore. Its vibrant downtown has many culinary options, cafes, and boutiques, as well as art fairs, farmer’s markets, and more.

Bottom Line

Michigan has high property taxes, but this is largely offset by the overall lower cost-of-living and housing prices. The state has numerous towns and cities which frequently rank as the most charming and friendly in the country, as well as excellent healthcare options, especially for those near one of the state’s top-rated universities. If you can handle the colder winters, Michigan is a lovely midwestern state to call home. Learn where in Michigan you can comfortably retire to by speaking with a financial advisor at Retirable to review your investments and budget.