New Jersey keeps losing residents. United Van Lines' 2025 National Movers Study found that 62% of moves involving the Garden State were outbound — the highest share in the country for the eighth straight year — with retirement and affordability high on the list of reasons. Where are all these people going? Mostly next door: Census data shows more than 38,000 New Jerseyans moved to Pennsylvania in 2024 alone.
The pull is largely financial. Pennsylvania's personal income tax rate is a flat 3.07%, and the state exempts Social Security benefits entirely, plus most distributions from pensions, IRAs and 401(k)s. New Jersey exempts Social Security too, but its retirement income exclusions come with conditions — you need to be 62 or older and have earned under $150,000. Property taxes add to the gap: New Jersey averages about 1.88%, among the highest in the US, while Pennsylvania sits closer to 1.26%. One catch worth checking with a financial adviser: Pennsylvania does levy an inheritance tax of 0% to 15%, which matters if you plan to leave property to heirs.
Money aside, Pennsylvania offers a genuinely varied retirement lifestyle. Bethlehem, named one of Investopedia's top 100 places to retire, pairs a walkable downtown with a packed events calendar — the old Bethlehem Steel site is now SteelStacks, hosting concerts, films and festivals, and the free Musikfest draws crowds every year. It's also handy for anyone who still wants to pop back to New Jersey, with Lehigh Valley International Airport nearby. Out west, Altoona topped U.S. News and World Report's ranking of Pennsylvania retirement spots (seventh nationally), with mountain views, golf courses and a population where 19% are already over 65. Johnstown, Williamsport, Lebanon, Chambersburg, Erie and Allentown also made the list.
Outdoor types get the Pocono Mountains, Lehigh Gorge State Park's riverside trails and the Delaware Water Gap National Recreation Area, all within reach of the state's population centres. If you'd rather ditch the car entirely, Philadelphia and Pittsburgh — sixth and tenth on the state ranking — offer solid public transit and big-city dining. Suburban and rural towns, though, generally require driving, and winters here are real: snow, ice and freezing temperatures, especially in the mountains.
For New Jersey retirees weighing a move, the pitch is simple: a short relocation that keeps family ties and familiar surroundings close, while cutting income and property tax bills significantly. Start by comparing healthcare access, transport needs and living costs across a few candidate towns, and factor in the inheritance tax before signing anything.
