Lifestyle
Texas is known for oil, barbecued meat, and ranches, but the state has many things to offer retirees.
Adam Cecil
Published April 11th, 2024
Adam Cecil
•
Published April 11th, 2024
Table of Contents
Key Takeaways
Texas may not be the most tax-friendly state for retirees, but it does have a low cost of living.
A warm climate and plenty of bustling towns make it popular with many retirees.
Some cities are more historic in nature, while many others are more geared toward families and suburban life.
Spanning from the Gulf Coast to the rugged beauty of the Hill Country and beyond, the Lone Star State boasts a varied terrain that appeals to a wide range of preferences. With its warm climate, affordable cost of living, and renowned healthcare facilities, Texas provides retirees with a welcoming and dynamic environment to enjoy their golden years.
Whether you're drawn to the urban energy of cities like Houston, the cultural richness of San Antonio, or the laid-back charm of smaller communities, Texas offers a multitude of options for retirees seeking a fulfilling and enriching retirement experience.
Is Texas a good place to live for retirees?
Texas is known for oil, barbecued meat, and ranches, but the state has many things to offer retirees. Although you will find a relatively low cost of living in some areas, it’s important to note that both sales taxes and property taxes are higher than many states. But there are many other reasons to move to the state, as described below.
Is Texas tax-friendly for seniors?
Overall, Texas can be tax-friendly for seniors, as it does not have an income tax. That means that all forms of retirement income—Social Security, private and public pensions, and withdrawals from accounts like 401(k)s and IRAs—are tax free at the state level. It also means you won’t pay income tax on any wages from full- or part-time work.
On the other hand, Texas has an 8% sales tax and an average effective property tax of 1.6%, which is one of the most expensive property taxes in the country.
Do seniors in Texas pay property taxes over 65?
Yes, seniors in Texas are responsible for their high property taxes. If you’re over the age of 65, you can apply for a deferral, which means you won’t have to pay your property taxes until one of two events: you die or the property is sold. Once one of those events occurs, the property tax is due back to the state with interest. In practice, this means the sales tax will have to be paid by your estate or with proceeds from the sale.
What benefits do seniors get in Texas?
Seniors in Texas can apply for help with long-term care, medical transportation, and programs like Medicare and Medicaid.
Where is the best place to retire in Texas?
Texas is the second largest state in the nation, and the largest in the lower 48. With over 268,000 square miles to explore, it can be hard to pick just one city to retire to in Texas. Here’s our list of the top ten best places in Texas to retire.
Dallas
CITY POPULATION: 1,304,379
SHARE OF POPULATION 65+: 11.4%
COST OF LIVING FOR RETIREES: 7% above the national average
MEDIAN HOME VALUE: $304,813
MEDIAN RENT: $1,895
TAX RATING FOR RETIREES: Moderately Tax Friendly
Dallas has a little bit of everything, from restaurants to dining options. But what makes it one of the best places to retire in Texas is its relatively low housing prices. The city is also home to UT Southwestern Medical Center, one of the top hospitals in the country.
Austin
CITY POPULATION: 961,855
SHARE OF POPULATION 65+: 10.8%
COST OF LIVING FOR RETIREES: 9.1% above the national average
MEDIAN HOME VALUE: $530,990
MEDIAN RENT: $2,145
TAX RATING FOR RETIREES: Moderately Tax Friendly
If you like live music, you can’t go wrong with Austin, which is rich in live music venues. But what makes it one of the best retirement communities in Texas is its many parks and walking trails. You’ll also find all the dining and shopping you need both downtown and in the surrounding suburbs.
Fredericksburg
CITY POPULATION: 10,875
SHARE OF POPULATION 65+: 31.9%
COST OF LIVING FOR RETIREES: 0.2% below the national average
MEDIAN HOME VALUE: $528,031
MEDIAN RENT: $2,500
TAX RATING FOR RETIREES: Moderately Tax Friendly
History lovers often choose Fredericksburg for a Texas retirement. You’ll find plenty to do, from touring the Pioneer Museum to taking in the many landmarks and historic buildings. It does attract a decent tourist population, but this also means you’ll have plenty of restaurants and shops nearby.
Port Arthur
CITY POPULATION: 56,039 SHARE OF POPULATION 65+: 13.2% COST OF LIVING FOR RETIREES: 12.1% below the national average MEDIAN HOME VALUE: $95,363 MEDIAN RENT: $1,095 TAX RATING FOR RETIREES: Moderately Tax Friendly
This Gulf Coast town is one of the best cities to retire in Texas if you’re looking for a beachfront community. In addition to being ideal for beach lovers, Port Arthur is also a suburban town packed with amenities.
McAllen
COUNTY POPULATION: 142,210
SHARE OF POPULATION 65+: 14.3%
COST OF LIVING FOR RETIREES: 21% below the national average
MEDIAN HOME VALUE: $216,840
MEDIAN RENT: $1,400
TAX RATING FOR RETIREES: Moderately Tax Friendly
If you’re looking for one of the cheapest cities in Texas, consider McAllen, a populous city close to the Mexico border. You’ll get year-round warm weather and access to all the amenities that come with living in a larger town.
San Antonio
CITY POPULATION: 1,434,625
SHARE OF POPULATION 65+: 13.1%
COST OF LIVING FOR RETIREES: 7.9% below the national average
MEDIAN HOME VALUE: $254,014
MEDIAN RENT: $1,675
TAX RATING FOR RETIREES: Moderately Tax Friendly
Best known for its Riverwalk, San Antonio is among the best towns to retire in Texas for its history. In fact, it’s the oldest city in the state. You’ll get a low cost of living and warm climate, along with easy access to medical care.
Houston
CITY POPULATION: 2,304,580
SHARE OF POPULATION 65+: 12.8%
COST OF LIVING FOR RETIREES: 5.4% below the national average
MEDIAN HOME VALUE: $261,764
MEDIAN RENT: $1,800
TAX RATING FOR RETIREES: Moderately Tax Friendly
As Texas’s largest city, Houston is a great option if you want to make sure you have access to everything. It’s one of the best retirement communities in Texas, though, due to its healthcare industry. Among the many medical centers is Houston Methodist, a top-ranked hospital statewide.
El Paso
CITY POPULATION: 678,815
SHARE OF POPULATION 65+: 14.1%
COST OF LIVING FOR RETIREES: 15.8% below the national average
MEDIAN HOME VALUE: $213,522
MEDIAN RENT: $1,554
TAX RATING FOR RETIREES: Moderately Tax Friendly
El Paso is often ranked as the cheapest place to retire in Texas, but it also gets high marks for the overall happiness rating of its residents. You’ll get access to high-quality healthcare, recreation, and cultural attractions.
Amarillo
CITY POPULATION: 200,393
SHARE OF POPULATION 65+: 15.1%
COST OF LIVING FOR RETIREES: 10.5% below the national average
MEDIAN HOME VALUE: $192,244
MEDIAN RENT: $1,324
TAX RATING FOR RETIREES: Moderately Tax Friendly
Another city confirming why the answer to “is Texas a good place to retire?” is “yes” is Amarillo. Quality healthcare and cultural attractions make it popular with retirees. Active adults will also love the parks and gyms throughout the city.
Killeen
CITY POPULATION: 153,095
SHARE OF POPULATION 65+: 8.6%
COST OF LIVING FOR RETIREES: 15% below the national average
MEDIAN HOME VALUE: $223,161
MEDIAN RENT: $1,300
TAX RATING FOR RETIREES: Moderately Tax Friendly
If you’re looking for the cheapest place in Texas to live, another consideration is Killeen. Nearby Fort Hood has one of the largest military bases in the U.S. Although many of the activities are geared toward families, two senior centers ensure retirees have plenty to do.
Bottom Line
There are plenty of affordable cities in Texas, giving you a wide range of options. Since each person’s retirement needs are unique, though, it’s best to assess your own financial situation. Retirable can help set you up with a plan for achieving your retirement goals no matter where you decide to live.
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Adam Cecil is a freelance writer who has produced financial content for Retirable, Policygenius, and Donational, In his free time, he writes the weekly pop culture newsletter Night Water and produces independent fiction podcasts.
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Western U.S. Best Cities To Retire
Share this advice
Adam Cecil is a freelance writer who has produced financial content for Retirable, Policygenius, and Donational, In his free time, he writes the weekly pop culture newsletter Night Water and produces independent fiction podcasts.
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