Study says Virginia near DC is a better retirement state than Maryland in 2026

Virginia ranks higher for retirement in 2026

Choosing a place to spend your golden years near the nation’s capital often comes down to two neighboring states. A major study released on January 27, 2026, reveals that Virginia is a much better choice for seniors than Maryland this year.

The report evaluated every state based on costs, healthcare, and lifestyle factors. Virginia earned the 12th spot on the national list of the best states to retire. Meanwhile, Maryland did not perform as well and fell much lower to the 36th spot out of all 50 states.

Virginia offers better affordability for seniors in 2026

Affordability is a primary concern for people living on a fixed income after they stop working. The 2026 data show that it is significantly cheaper for retirees to maintain their lifestyle than in other states.

In the most recent national rankings, Virginia ranked 20th for affordability. Maryland struggled significantly in this category, ranking 41st. This means Maryland is officially one of the ten most expensive states for seniors.

Higher daily costs in Maryland make it much harder for many people to save money.

Maryland has higher state sales tax rates

Retirees must carefully watch every dollar they spend on daily items like clothes or household supplies. As of January 2026, the state of Maryland charges a flat 6% sales tax on most items you buy.

Virginia’s statutory state sales-tax rate is 4.3%; many transactions carry a mandatory 1% local add-on, so typical combined rates start around 5.3%. Maryland’s state sales tax on most retail purchases is 6.0%. Exact costs depend on local rates and exemptions.

In many common purchase scenarios, the combined sales-tax burden in Maryland (6.0%) is higher than in many Virginia localities (where combined rates often start around 5.3%), but exact costs depend on locality and item exemptions.

Virginia keeps hospital patient safety a priority

Staying safe when you need medical care is a top priority for older adults. A comprehensive report from November 13, 2025, named Virginia the second-best state in the nation for hospital safety.

The study found that 53.5% of hospitals in Virginia earned an “A” grade for their care. This was the second year in a row that Virginia held this high rank.

This focus on safety helps seniors feel more confident when they have to visit the doctor or stay in a local hospital.

Maryland residents pay more for monthly electricity

Monthly utility bills can be a difficult surprise for many people on a budget. In 2026, people living in Virginia paid less for electricity than those in Maryland.

According to the U.S. Energy Information Administration (2024 data, published Nov. 2025), Maryland’s average residential monthly electric bill was about $165.87 in 2024, compared with about $148.77 in Virginia.

EIA data show Virginia’s average residential bill (~$148.77 in 2024) was lower than Maryland’s (~$165.87 in 2024), which can modestly affect monthly budgets for seniors, though actual bills vary by household use and local utility rates.

Health insurance premiums are rising in Maryland

Paying for health insurance is a significant expense for many people as they age. In Maryland, the approved rates for individual health insurance plans will increase by an average of 13.4 % in 2026.

This increase is mainly due to the loss of federal tax credits under the Inflation Reduction Act. While Maryland leaders tried to keep costs low, the average increase still impacts seniors significantly.

This makes it more expensive for retirees in Maryland to maintain their health coverage than it was the previous year for medical care.

Maryland charges extra taxes on estates

Planning for the future is vital for many seniors who want to help their families. Maryland is currently the only state in the country that has both an estate tax and an inheritance tax. Virginia does not have these extra taxes at all.

As of 2025, Maryland’s estate-tax exemption was $5 million (estates above that amount may owe state estate tax). Maryland also imposes an inheritance tax, which can affect legacy and estate planning.

Property tax burdens are higher in Maryland

Owning a home is an excellent way for seniors to stay in their communities. Maryland has an average effective property tax rate of 0.95%. Virginia has a lower average effective tax rate for homeowners.

Because property taxes are a yearly cost, a lower rate helps retirees keep more of their money. Higher taxes in Maryland leave seniors with less money to spend on other things, such as travel, food, or their favorite hobbies, during their retirement years.

This difference in rates makes Virginia much more attractive to people who want to own a home.

Gas taxes are higher for Maryland drivers

Driving to see family or go to the store costs money every time you fill up. Maryland’s state fuel tax was 47 cents per gallon as of May 2025. Virginia’s fuel tax was lower for gasoline.

This difference means Maryland drivers spend more money every time they visit a gas station. While it might seem like a small amount, it adds up for seniors who drive often.

Higher gas taxes are another reason Maryland is a more expensive place for retirees to live than Virginia in 2026.

Virginia is better for quality of life

A happy retirement is about more than just saving money. In the 2026 study, Virginia was ranked 15th in the country for quality of life. Maryland was ranked slightly lower at 20th place.

This category examines factors such as weather and the number of fun activities available to seniors. Virginia offers many places to live, from the mountains to the beach.

These choices give retirees more ways to enjoy their time outdoors and stay active with their friends and families in 2026 and beyond.

Vehicle registration fees cost more in Maryland

Every car owner has to pay fees to keep their vehicle on the road. In 2025, the state of Maryland increased its fees for residents. Maryland car owners now pay $120.50 per year to register their vehicles weighing under 3,500 pounds.

In Virginia, these same fees are much lower for residents. This means that registering a car in Maryland costs much more than it does in Virginia.

These higher fees are another reason why Virginia is a better financial choice for many seniors who want to keep their own cars for local travel.

Maryland has many active doctors for seniors

Having a doctor nearby is very important as people get older. Maryland has a high physician supply; Maryland’s public economic materials report over 27,500 active physicians statewide.

While Maryland has many doctors, it still ranked lower than Virginia for retirement in 2026. High costs make it harder for seniors to pay for care. Virginia’s higher safety and lower insurance costs give it an edge, offering retirees a better balance.

Looking for a cozy getaway where history comes alive under a blanket of frost? Check out welcoming winter in Virginia river towns that feel like a step back in time.

Virginia is the superior state for 2026

The data from 2026 clearly shows that Virginia is the better state for retirement. Virginia finished in the top 20 states overall, ranking 12th. Maryland fell much further behind and ended up at the 36th spot.

Virginia’s better ranking is due to lower taxes, cheaper utility bills, and safer hospitals for patients. Maryland’s high cost of living makes it a difficult place for many people on a fixed income.

Choosing Virginia helps seniors protect their money and enjoy a much better life during their retirement years in 2026.

Are rising costs and shifting job markets forcing residents to look for a fresh start elsewhere? Find out more about 14 brutal reasons why people are fleeing Virginia in 2026.

What factors matter most to you when choosing a retirement state? Share your thoughts in the comments.

This slideshow was made with AI assistance and human editing.

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