Where Should I Retire?: We need lower taxes and a lower cost of living so we can live on $38,000 a year—where can we retire?

Hello,

I am hoping for suggestions on where my husband and I could afford to live on our $38,000 annual budget. He is 71, disabled and receives Social Security. I am 64. We are looking for a more friendly retirement state with lower taxes and a lower cost of living. 

I have recently retired from a job with the state of California and get a…