This West Virginia City Gem Was Just Named a Best Place to Retire in the U.S. South

If you’ve never been to West Virginia, you might be wondering if it really is “almost heaven” as the famous song lyrics say. Many retirees would say so, especially when it comes to the capital city, Charleston. 

Charleston has a population of 48,864. Thanks to its mountain living vibe, big city amenities, and overall affordability, the state has selected Charleston as a “Designated Retirement Community.” In fact, not only does it have one of the lowest median housing costs in the South, but soon-to-be retirees will be delighted to learn that the state announced this year that it is phasing out taxes on Social Security benefits by 2026.

From its vibrant arts and culture offerings to its outdoor beauty, strong health care, and remarkably low housing costs, it’s a hidden gem among up-and-coming retirement destinations in the South. 

Key Takeaways

• Charleston, West Virginia has one of the lowest median monthly housing costs in the South, making it an attractive option for retirees on a fixed income.
• Home sales prices, median rent, and property taxes are also lower than in most states.
• West Virginia is phasing out its Social Security income tax; by 2026, seniors will no longer have to pay anything. 

Below-Average Cost of Living

Since housing costs are usually the largest expenditure for most household budgets, let’s start there. Our research found that Charleston had a $857 median monthly housing cost, which is 26% lower than the median across the South. In fact, only two other cities in our report on the best places to retire in the South had lower housing costs. 

If you’re planning to purchase a home in retirement, Charleston is worth a look, with a median home sale price of $196,633 compared to $412,300 nationally. Charleston residents have a median annual income of $58,902, which is about 29.96% of the area’s median home sale price. In comparison, the national income-to-home value ratio is 18.1%, based on a national median income of $74,580. This means your income goes much further in Charleston than it does nationally.

If you prefer to rent, there are affordable options in Charleston as well, especially once you factor in residents’ median monthly income of $4,909. With a median rent of $870 per month, that means it requires about 17.72% of income to pay rent (based on the national median rent of $1,405 as of October 2024, and $6,215 national median monthly household income). This puts Charleston renters in a better position compared to national figures.

Note

One of Charleston’s main draws is its low housing costs.

Why This Is Key to an Affordable Retirement

When you live on a retirement income, you know it has to last for your lifetime and be available should the need for advanced health care arise. Although you may get slight bumps in Social Security payments when the cost of living rises, other sources of retirement income, like your pension, will likely remain fixed.

Therefore, a location’s cost of living can be the difference in whether you’ll have a financially comfortable or financially strained retirement.

Low State Property Taxes

West Virginia ranks 43rd in the nation for state and local property tax collection per capita. For Kanawha County (where Charleston is located), based on a median home sale price of $196,633, annual property taxes are $1,396 or about $116 per month. This gives Charleston homeowners one of the lowest property tax burdens in the South.

Why This Is Key to an Affordable Retirement

For a retiree, even if you’ve paid off your home mortgage, a high tax burden can make a large dent in your budget. Ask anyone living in a high property tax state like New Jersey or D.C., and they can attest that it adds to their monthly obligation. 

Choosing an area with lower-than-average property taxes, like West Virginia, can give you more disposable income for your other needs and wants.

Below-Average Income Tax

One of the more exciting announcements to come out for those considering a move to West Virginia is that the state is phasing out income taxes on Social Security benefits. Legislation passed by the West Virginia House of Delegates will cut the taxes over a three-year period: a 35% deduction for 2024; 65% for 2025; and by 2026, no taxes on Social Security at all.

West Virginia has five different income tax brackets ranging from 2.36% to 5.12% for other types of income. If you make below $10,000, the rate is 2.36%; from $10,000 to $25,000, you’ll pay 3.15%; from $25,000 to $40,000, it’s 3.54%; from $40,000 to $60,000, it goes up to 4.72%; and anything above $60,000, it’s 5.12%.

Note

Even at the highest rate (if you earn more than $60,000 per year), you’ll still be paying less than what some other states charge their lowest earners. For example, Minnesota’s starting rate is 5.35%. 

Why This Is Key to an Affordable Retirement

To put it simply, the more of your income you get to keep, the better off you are. That’s why retirees—especially pension earners—often seek out states that either don’t charge income tax at all (like Florida) or ones in which the rate is low. 

West Virginia is not necessarily the best in this category, but it’s definitely one of the better options. And, once it fully phases out taxes on Social Security in 2026, it will further position itself as a senior-friendly place to live.

Other Surprising Perks of Charleston, West Virginia For Retirees

Charleston is not just a stand-out retirement city for its overall affordability. It’s also highly attractive for its livability, crisp mountain air, and cool downtown vibe. It’s also a good option for retirees who enjoy all four seasons and value fall foliage over white sand beaches. 

Active seniors will enjoy the plethora of recreational and cultural opportunities Charleston offers. Visit art galleries, take in a ballet, attend a local festival, or browse quaint village shops. When the great outdoors are calling, you can head to Kanawha State Forest for biking and mountain trails.

In terms of health care, residents of Charleston are in capable hands with CAMC Memorial Hospital. The facility boasts one of the highest volume heart programs in the United States, comprehensive cancer care, and robotic surgeries.

Bottom Line

If you’re seeking a retirement location in the South, Charleston, West Virginia offers a trifecta of affordability, downtown culture, and natural beauty. Assuming you’re more of a “mountain mama” (or papa) than a beach lover, the scenic city could make for a great place to live out your retirement years.

Its low housing costs and soon-to-be waiver on Social Security income taxes also make it financially attractive for retirees on a fixed income. 

Methodology

The places chosen for the 2024 South’s Best Places to Retire list were selected from all Census Designated Places in southern states (Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia). Median household income and monthly housing cost estimates were collected from the 2022 American Community Survey (5-year) for each place in the South. Places for which estimates included large margins of error were removed from the initial list. 

The final list of places was selected by evaluating: 

1. Housing affordability relative to the South (how each place’s monthly housing costs compare with a weighted average for states in the South);
2. Median income in each place (as a proxy for taxes collected, which may be related to community resources; and
3. Individual reporting on proximity to parks or coastlines, recent changes in the community, and previous reporting by Southern Living highlighting the best places to retire.

Read the original article on Investopedia.