Stretch Your Nest Egg by Leaving Long Island

How relocating to tax-friendly states could add years to your retirement savings

Let’s not sugarcoat it: Retiring on Long Island is expensive.

If you live here and are nearing retirement, you’ve likely asked yourself: Can we actually afford to stay here?

You’re not alone. Across Nassau and Suffolk counties, Long Island retirees are running the numbers and realizing their zip code may be working against them. The truth is, where you choose to live in retirement could mean the difference between counting every penny and enjoying the wealth you’ve worked so hard to accumulate. 

The good news? You’ve got options—and they’re worth exploring.

Why Long Island Feels Pricier Every Year (Hint: Because It Is)

We all feel it—and the numbers back it up. Long Island is one of the most expensive places in the country to retire. Housing costs are surging. Taxes are relentless, and everyday expenses just don’t quit.

Housing Prices Set a New Record

In early 2025, the median home price on Long Island (excluding the East End) hit a record-breaking $705,000, up nearly 12% in a single year (Newsday). That’s not a fluke—it’s a 57% increase over the past five years.

Dig into the details, and the picture becomes even clearer:

• Nassau County: Median home price now sits at $805,000
• North Shore (Nassau): Median price up 20% to $1.4 million
• South Shore (Nassau): Up 15% to $759,000
• Suffolk County: Median price at $630,000, up sharply year over year

Low inventory and rising demand mean buyers are paying more—often over asking price. In fact, 54% of homes sold above asking in early 2025, more than double the rate from five years ago. For retirees considering downsizing, there is little relief in sight.

Property Taxes That Keep Climbing

It’s not just the purchase price of a home that hits your wallet. It’s the ongoing cost of ownership—and on Long Island, property taxes are a major pain point.

Here’s what retirees are facing with Suffolk and Nassau County property taxes:

• Nassau County: Average effective property tax rate of 1.79%
• Suffolk County: Even higher, at 2.42%

At current  home prices, that’s:

• Over $14,400/year in property taxes on an $805,000 home in Nassau
• Over $15,250/year on a $630,000 home in Suffolk

Unfortunately, the tax obligations don’t end there. Many local homeowners are hit with multiple line items: county taxes, school taxes, town taxes, and special districts. Additionally, because each town uses different assessment ratios, it’s not always clear how those numbers are calculated—or when they’ll go up again.

In towns like Brookhaven, Babylon, Islip, and Riverhead, effective rates push 2.5% or higher, and reassessments can reset your tax base overnight. Add it all up, and for many retirees, property taxes are their largest recurring expense—even after the mortgage is gone.

Cost of Living Comparison: How Far Your Dollars Really Go Elsewhere

If staying on Long Island means higher housing costs, higher taxes, and a higher cost of living across the board—what happens if you don’t stay?

You may gain flexibility. You may gain quality of life. You also may gain serious buying power. Let’s look at how some of the country’s most popular retirement destinations compare:

Source: https://worldpopulationreview.com/state-rankings/cost-of-living-index-by-state

Across the board, retirees in these states are seeing lower costs in nearly every category—especially housing and healthcare. Some highlights:

• Florida: No state income tax, healthcare 9% cheaper than NY, and housing 36% lower
• North Carolina: Cost of living at the national average, housing nearly 45% lower
• Texas: Housing costs 51% lower, plus no state income tax
• Pennsylvania: A compelling “closer to home” option with 50% lower housing costs and favorable tax treatment of retirement income

These aren’t just numbers—they could represent less financial strain, more freedom, and a retirement that actually feels like one.

Retirement Planning: More Tax Math

Leaving Long Island can do more than trim your monthly bills—it can also dramatically reduce your retirement income tax burden.

New York State taxes retirement income on a sliding scale of 4% to 10.9%, depending on total income. While some exemptions exist—such as the first $20,000 per person over age 59½—most forms of retirement income beyond that threshold are subject to tax. For retirees drawing from pensions, IRAs, and 401(k)s, those costs can add up quickly.

By contrast, several popular retirement destinations impose no state income tax at all. These include:

• Florida
• Texas
• Tennessee
• Nevada
• South Dakota
• Wyoming
• Alaska
• New Hampshire

Several others offer partial or full exemptions on retirement income, including Pennsylvania, which typically exempts Social Security, pensions, and qualified withdrawals from retirement accounts. For retirees with a steady income, the absence of state-level taxation can translate into thousands of dollars in annual savings. Over a 20- to 30-year retirement horizon, that’s not just meaningful—it’s transformative. It means more flexibility, more breathing room, and greater peace of mind.

Case Study: How the Millers Saved $22K a Year—Without Downsizing Their Life

Robert and Patricia Miller, both 63, were two years away from retirement and facing a tough question: Can we really afford to stay on Long Island once the paychecks stop coming in?

Their home in Nassau County was worth $650,000 and fully paid off. Their retirement income would total about $132,000 per year, including Social Security, pension income, and 401(k) withdrawals. However, when they reviewed their actual expenses, the numbers didn’t feel nearly as comfortable as they had expected.

Staying on Long Island: $69K a Year and Climbing

Between property taxes, insurance, and upkeep, their home alone cost $22,000 a year to maintain. Add in healthcare costs, food, transportation, and taxes—and their annual expenses reached nearly $69,000. That left very little margin for inflation, emergencies, or extras. It also raised a sobering question: What happens 10 years from now if our health changes or our costs go up?

Long Island to Florida Move: More Than Sunshine

After running the numbers with their advisor, the Millers considered relocating to a retirement community in Florida. They found a home they loved for $425,000—newer, smaller, and easier to maintain. However, the real surprise came from their revised budget.

Their property taxes dropped by nearly $8,000 a year. Healthcare and insurance were more affordable. No state income tax meant they kept more of their retirement income. All in, their new annual expenses came in around $46,500—a savings of more than $22,000 every year.

What That Means Over Time

That’s not just extra pocket money. Over 20 years of retirement, the Millers stand to save $448,000—not including the $225,000 they unlocked by selling their Long Island home and purchasing a lower-cost property in Florida. Robert and Patricia didn’t have to sacrifice comfort or their lifestyle. They simply made a strategic shift—one that created financial breathing room for the next two decades.

Ready to Relocate? Run a Real-Life Senior Relocation Checklist

You don’t need a spreadsheet to know Long Island’s getting more expensive. However, you do need a game plan if you’re thinking about leaving. It’s not just about taxes and housing—it’s about building a life that works for you in retirement.

Here are a few factors to consider when making your final decision:

Financial Factors That Actually Matter

What’s the real tax difference?

Run the numbers: What are you paying now in NY property, income, and sales tax? Compare those totals to the state you’re considering. 

What’s your house really worth—right now?

Home values on Long Island have surged. If you’ve got equity, now may be the time to unlock it. Compare what you’d net from a sale here to what it takes to buy comfortably elsewhere.

What will it actually cost to move?

Think movers, flights, closing costs, and maybe a few nights in an Airbnb while you get settled. Don’t forget: things like utility deposits and transitional expenses add up fast.

How does healthcare stack up?

Will your current doctors be in-network? Are Medicare supplement plans cheaper (or pricier)? What kind of care is available nearby—and do you trust it?

How often will you want—or need—to come back?

Whether it’s grandkids, birthdays, or the unexpected, build a travel budget that reflects reality, not wishful thinking.

Lifestyle & Daily Life Questions

Who’s in your circle—and will they be nearby?

Leaving Long Island might mean gaining savings but losing proximity. Will you feel isolated? Can you build new connections? Are there people, hobbies, or faith communities waiting for you?

Are you ready for a new climate—and the trade-offs?

Hurricane season, heat indexes, and bugs are real in some states. So are year-round sunshine, walkable neighborhoods, and poolside mornings. What are you gaining—and what will you miss?

Will your new town actually work for your life?

Check the basic amenities: grocery stores, dining, pharmacies. Is there solid healthcare nearby? Are you 30 minutes from the ER or 5?

Can you age in place—or will you need to move again later?

Think ahead: stairs, accessibility, proximity to hospitals. If you need care later, will you be in a place that supports that?

Timing Is Everything

Does this move line up with your retirement timeline?

Your move should work with your Social Security strategy, benefit payouts, and cash flow—not against them. Always consult with a professional advisor before making the final decision.

What’s happening in the market—both here and there?

Interest rates, home demand, and regional trends can change your math overnight. Timing matters. Get advice, not just Zillow alerts.

Do you need to dip a toe before diving in?

Not sure yet? That’s okay. Rent short-term. Spend extended time in the area you’re considering to learn more about what life is like for locals. 

Make Your Money Last Where It Matters Most

Leaving Long Island isn’t just a financial decision—it’s a life decision.

Yes, the math is compelling. Lower housing costs. Smaller tax bills. More room in the budget for what matters most. For many retirees, that alone can add years—if not decades—to the longevity of their savings.

However, there’s real value in staying close to family, keeping your community ties intact, and living in a place where the streets, seasons, and routines feel familiar. Those things don’t show up on a balance sheet—but they still matter.

That’s why the goal here isn’t to tell you what to do. It’s to help you make a decision with your eyes open.