Last updated 2026-07-10 ยท MovePlan Editorial Team
Low costs, no tax on retirement income, and Gulf beaches plus lake country to choose from.
1. Fairhope: Best overall
2. Huntsville: Best for healthcare and value
3. Gulf Shores: Best beach retirement
4. Auburn: Best college-town retirement
5. Mobile: Best historic city
6. Guntersville: Best lake retirement
7. Florence: Best for affordability
8. Daphne: Best for bay access
Alabama is a budget-friendly retirement state, with a low cost of living, no state tax on Social Security or most pension income, and a range of settings from Gulf beaches to lake country. Summers are humid, so weigh the climate. Here are the 8 best places to retire in Alabama, ranked.