This Historic Coastal Town With No State Income Tax Could Be A Retirees Dream

State income tax policies decide how much retirees actually keep from their nest eggs. According to H&R Block, taxes on retirement income range from 0% to over 12.3%, depending on where you live. That can slash thousands from Social Security, pensions, and retirement accounts annually. According to the Social Security Administration, the average monthly Social Security retirement benefit was $2,008 in August 2025. Even small tax changes can hit a fixed budget hard. And of course, the federal government also takes its cut. The Internal Revenue Service (IRS) levies up to 37% on ordinary income, shrinking retirement savings even further. Moving to a tax-friendly state isn't just appealing — it's become a practical necessity for many retirees planning ahead.

Westport, in Grays Harbor County, Washington, gives retirees a rare opportunity at coastal living while keeping more money in their pockets. Washington is one of just nine states without a state income tax. Residents pay no tax on Social Security, pension checks, or retirement account withdrawals. Westport itself has always been tied to the sea. It became an official town in 1914, built on commercial fishing and a harbor that has kept working ever since. The Peterson's Point Lifeboat Station went up in 1897, and the Grays Harbor Lighthouse followed in 1898. Retirees will love the fresh air, history, and active lifestyle of this budget-friendly maritime community. 

Westport makes beachfront retirement possible for far more people. Everyday costs stay low, which helps budget-conscious retirees stretch fixed incomes. According to BestPlaces 2025 data, Westport's overall cost of living index was 92.2 in 2025. That sat 24.4% below Washington's average of 116.6 — and 7.8% under the U.S. benchmark of 100. Homes in Westport are surprisingly affordable. DataUSA shows the median property value at $228,800 in 2023. That's about 56% below Washington's $519,800 statewide median that year. Property taxes hold steady too. The Tax Foundation says Grays Harbor County's average rate was 0.87% of assessed market value in 2023, meaning retirees on fixed budgets get more predictability.  

Groceries tell a similar story. According to AreaVibes, using 2024 data from the Council for Community and Economic Research (C2ER) Cost of Living Index, Westport's overall cost of living index registered at 108 compared with 118 for Washington and 100 nationally. Utilities stand out as a bright spot. Electricity ran $126.20 per month in 2024. That's 34.9% lower than the U.S. average of $193.99 for a comparable home. However, transportation costs were mixed, as gasoline prices averaged $4.37. That's about 26.2% higher than the U.S. average of $3.46. 

Westport proves you don't need huge savings to retire rich. Westport Light State Park spreads across 560 acres of day-use area and 1,215 feet of Pacific shoreline (just bring a Discover Pass: $30 yearly or $10 daily, though entrance fees can shift). Community celebrations weave through the calendar year, creating that small-town fabric that bigger cities lack. The Annual 9/11 Walk to Remember each September draws American Legion members who lead commemorative walks from Grays Harbor Lighthouse to the General James H. Doolittle VFW building — a solemn tradition that binds neighbors.

The town's quirky side shows up at the Annual Rusty Skupper Pirate Daze. Costume contests, treasure hunts, and maritime-themed shows mean affordable family fun. Local food culture shines at the World-Class Crab Races, Crab Feed, and Derby. Residents race crabs (yes, really). They share meals. They fish in contests that celebrate Westport's seafood heritage.

Art fans will find plenty in August at the Westport Art Festival. Outdoor galleries pop up across town and regional artists exhibit live. Hands-on workshops invite retirees to get into painting, pottery, and more. The Westport Center for Senior Activities targets residents 60 and older, and offers fitness classes and social meetups. Community newsletters share local news and events, keeping Westport retirees active and tuned in.