When it’s time to choose where to retire, more than a handful of factors will likely influence your decision. Financial concerns, including overall cost of living and tax implications, are usually the top considerations for soon-to-be retirees. There’s also weather, proximity to family and friends, and access to health care, entertainment, and a larger community, meaning the final call is no easy feat.

Depending on where you are in your journey to retirement, though, you may already have a general idea of where you’d like to settle down. Perhaps you’re drawn to the dry, arid climate and year-round sunshine of the American Southwest, but you’re not sold on the exact location. If that’s the case, we’re here to help narrow down your search.

Investopedia pulled exclusive data for Travel + Leisure to pinpoint the top places to retire across Arizona, New Mexico, Oklahoma, and Texas. Each city or town was ranked based on the cost of living for two adults (taking into account housing, food, and transportation costs for two adults), average monthly taxes, additional state-level tax regulations, distance to a major airport, health care accessibility, arts and culture opportunities, and more.

Below, in no particular order, discover 10 of the best places to retire in the Southwest, from a vibrant city in New Mexico to a tiny town in Arizona with a population of about 3,000.

Las Vegas, New Mexico

This is not the bustling Nevada destination—Las Vegas, New Mexico, is a relatively small town of 12,814. Instead of casinos and five-star hotels, this Vegas offers an incredible culture centered around history and outdoor recreation. As a local, you’ll spend time frequenting the quaint shops in the Old Town Historic District, visiting the Las Vegas National Wildlife Refuge, and boating, swimming, fishing, and bird-watching in nearby Storrie Lake State Park.

For those with retirement travel plans, consider the fact that the city is about 77 miles from Santa Fe Regional Airport. The median home value in San Miguel County comes in at just $177,600; the median home value for the entire U.S. in 2023 was $419,300. It’s also a good spot for anyone with health concerns; there are 33 hospitals and 45 health care establishments in the county.

Santa Rosa, New Mexico

Route 66 nostalgia persists in Santa Rosa, New Mexico, a town that appeared in the 1940 film adaptation of The Grapes of Wrath. Expect to encounter neon lights, throwback signs and buildings, and even a collection of vintage cars, gas pumps, and other memorabilia in the Route 66 Auto Museum. Located in Guadalupe County, between Albuquerque, New Mexico, and Amarillo, Texas, Santa Rosa is also known as the “Scuba Diving Capital of the Southwest”: It has the Blue Hole, an 81-foot-deep natural artesian spring that’s open year-round to scuba divers.

Santa Rosa, with a population of 2,742, earns points for low cost of living, which was calculated from county-level data. Median monthly housing in the county is $510, transportation runs $1,275, and food costs $603.

Hugo, Oklahoma

If you’ve always imagined yourself retiring by a lake—but are simultaneously hoping to keep your costs on the lower end of the spectrum—you may want to add Hugo, Oklahoma, to your short list. A popular destination for swimming, boating, fishing, and camping, Hugo Lake Park is located roughly seven miles east of town.

Hugo (population 5,199) sits squarely in the middle of Choctaw County, where the median home value is $119,700. Additionally, as an Oklahoma resident, your Social Security retirement benefits will not be subject to the state income tax. These potential savings could then be used for travel; if you’re planning on flying frequently in retirement, you’ll need to budget for gas. Texarkana Regional Airport and Dallas Love Field are technically the closest major airports to Hugo, but they’re each more than 100 miles away.

Port Arthur, Texas

The “official Cajun Capital of Texas” just might be your dream retirement destination, especially if you’ve always felt your happiest spending time outdoors. The Gulf Coast port city is located on Sabine Lake and the Sabine-Neches and Gulf Intracoastal Waterways, so fishing, kayaking, birding, and swimming are big in the area. Notably, Port Arthur is also just a 30-minute drive to Sea Rim State Park, where 5.2 miles of shoreline and more than 4,000 acres of marshland can be explored at leisure.

Other things to consider when retiring to Port Arthur—or other towns within Jefferson County—include the impressive number of health care facilities in the area (682); the fact that IRA, 401(k), and pension income are not subject to state tax in Texas; and the ease of travel, with its own airport that provides a connection to the hub of Dallas–Fort Worth; Houston’s airport is about two hours away.

Eagle Pass, Texas

Eagle Pass, Texas, sits right at the U.S.-Mexico border, across from its sister city, Piedras Negras. The largest town in Maverick County, Eagle Pass has 28,322 residents and one of the three casinos in the Lone Star State; the Kickapoo Traditional Tribe of Texas operates the Kickapoo Lucky Eagle Casino. When your friends and family come to visit, take them golfing on the municipal golf course or picnicking by Maverick County Lake. They may also enjoy seeing Fort Duncan Museum, located inside Fort Duncan Park.

With only two hospitals in Maverick County—and a 150-mile trek to the closest major airport, San Antonio International Airport—Eagle Pass may not be the best choice for those retirees anticipating larger health concerns or frequent travel. Still, Investopedia noted the medium-size town has county monthly taxes of just $470—the lowest of the destinations on this list. (Note Texas does not impose a state income tax.)

Longview, Texas

Like many places in the U.S., Longview, Texas, was founded as the railroad expanded. Since then, the 83,763-person destination has grown into an area that appeals to retirees because of its low cost of living, access to health care facilities, and roster of events and activities throughout the year. Take the Great Texas Balloon Race, for example. For more than 40 years, the hot-air balloon festival and competition has brought aerophiles to this corner of the world.

As far as financial considerations go, the median home value in Gregg County is $185,800. Texas does not tax Social Security benefits or IRA, 401(k), or pension income.

Parker, Arizona

If anyone knows how to deal with intense heat, it’s Arizonans—particularly those who live in the tiny town of Parker. When temperatures rise in the summer, you’ll find locals and visitors alike swimming, tubing, paddleboarding, and wakeboarding on the Colorado River. When there’s a reprieve from the sun, they’ll head out to Emerald Canyon Golf Course or the network of hiking trails in Buckskin Mountain State Park.

Even at just 3,393 residents, Parker is the largest town in La Paz County, where the median home value is $117,600. Similar to other more remote destinations on this list, it’s a place where retirees who plan to travel will need to account for additional transportation costs; Palm Springs International Airport and Phoenix Sky Harbor International Airport are the closest major airports to Parker, and they’re both more than 100 miles away. If you’re someone who plans to road-trip through your golden years, though, you’re in luck. Parker is about a two-hour drive from Joshua Tree National Park, and Arizona is home to a number of National Park Service monuments, memorials, recreation areas, and historic sites (plus, of course, the Grand Canyon).

Albuquerque, New Mexico

Retiring doesn’t have to mean living in a small community or coastal town. In fact, Albuquerque, the largest city in New Mexico, is one of the best places to retire in the Southwest. This distinction largely stems from its extensive access to health care facilities—there are 22 hospitals and 1,500 other health care establishments in Bernalillo County—and a relatively low cost of living. For those living in Bernalillo County, the median monthly food cost comes in at $627, while monthly taxes are $593.

By far, two of the biggest benefits of city living are the ease of travel and the number of arts and cultural opportunities. Major airlines serve Albuquerque International Sunport, and those who thrive in a place with museums, galleries, and theaters will feel perfectly fulfilled with the city’s offerings.

Muskogee, Oklahoma

Muskogee, Oklahoma, bills itself as a place where “Native American heritage and military history come together.” It has the Ataloa Lodge Museum’s private collection of Native American art, the Five Civilized Tribes Museum, and the War Memorial Park. Water-based activities are also popular, with the Arkansas River, Fort Gibson Lake, Lake Tenkiller, and Lake Eufaula all within driving distance.

The city—population 36,898—is in Muskogee County, where the median home value is $138,800 and the monthly food cost for two adults is $610. When looking at how far your retirement budget will go in the area, take note that monthly taxes will be around $616—and, because it’s Oklahoma, your Social Security benefits won’t be taxed.

Lake Havasu City, Arizona

Anyone moving to Lake Havasu City for retirement likely envisions spending as much time as possible outside. “Arizona’s Playground” has plenty to fill your meeting-less days—there’s everything from hiking trails and golf courses to mountain biking, fishing, swimming, and water sports. Its low cost of living is also enticing; in Mohave County, the median monthly housing cost is $914, well below the national average.

You may also need to factor health care facilities into your moving decision. If that’s the case, keep in mind that Mohave County has nine hospitals and 391 other health care establishments.