Lincoln vs Santa Fe for Retirees (2026)
Scroll down for retirement income tax breakdown, healthcare estimates, and FAQ.
Full retirement cost breakdown
| Metric | Lincoln Nebraska | Santa Fe New Mexico |
|---|---|---|
| 1BR rent / month | $1,150Better | $1,550 |
| Median home price | $245KBetter | $480K |
| State income tax | 5.8% | 4.9%Better |
| Sales tax (combined) | 7%Better | 7.7% |
| Monthly utilities | $152Better | $158 |
| Groceries index (US = 100) | 94Better | 99 |
| Est. healthcare / month | $430Better | $495 |
| Walk score (0–100) | 36 / 100 | 42 / 100Better |
| Overall COL index (100 = US avg) | 86Better | 99 |
Frequently asked questions
Which city is better for retirement — Lincoln or Santa Fe?
Lincoln and Santa Fe are closely matched for retirees. Housing costs, tax burden, and overall affordability are similar. Your specific priorities — climate, walkability, family proximity — should guide the decision.
Is retirement income taxed in Lincoln or Santa Fe?
Santa Fe has the lower state income tax rate (4.9% vs 5.8%). Note that many states exempt Social Security income and some pension income from state taxes even when other income is taxed — check your specific state's retirement tax rules.
What is the estimated monthly healthcare cost in Lincoln vs Santa Fe?
Based on national average retiree healthcare spending (~$500/month) scaled by each city's cost-of-living index, estimated monthly healthcare costs are approximately $430 in Lincoln and $495 in Santa Fe. That's a difference of ~$65/month, or ~$780/year. Actual costs vary based on your Medicare plan, supplements, and health needs.
Can I afford to retire in Lincoln on a $50,000 annual income?
On a $50,000/year ($4,167/month) retirement income in Lincoln, rent alone would consume approximately 28% of your budget (1BR rent ~$1,150/mo) and healthcare another ~10%. That leaves roughly 62% (~$2,583/mo) for groceries, transportation, and other expenses. This is generally considered manageable.
Which city is more walkable for retirees?
Santa Fe has a higher walk score (42 vs 36 out of 100). Walkability is increasingly important for retirees who want to reduce car dependence — a score above 70 means most daily errands can be done on foot. Santa Fe offers more independence without a car, which also reduces transportation costs.
$50K/year in Lincoln has the same purchasing power as $58K/year in Santa Fe
Healthcare estimates based on national avg retiree spending (~$500/mo) scaled by COL index · State income tax rates from Tax Foundation · Data: Zillow, BLS, Numbeo · Q1 2026