Compare states
Arizona vs Texas for retirement
On the 8 lines this page tracks, Texas comes out lower or more retiree-friendly on 6 of them. That is a starting point, not a verdict: your own spending, housing, income mix, and the city you pick still decide the real number.
A green check marks the more retiree-friendly side on that line (lower cost, lower tax, or Social Security not taxed). Lower is not always better for you; these are state averages, not your plan.
Common questions
Arizona vs Texas, answered.
Is Arizona or Texas cheaper to retire in?
On the BEA cost-of-living index, Texas sits at 97 and Arizona at 101, where 100 is the U.S. average. So the same basket of goods tends to cost less in Texas. Housing and your own budget still decide the real number.
Which has lower taxes for retirees, Arizona or Texas?
Arizona uses about a 2.5% blended retirement-income planning rate. Texas has no state income tax. Arizona's average combined sales tax is 8.5% and its property-tax planning rate is 0.6%; Texas is 8.2% and 1.8%.
Does Arizona or Texas tax Social Security?
Arizona does not tax Social Security benefits under the current state-tax summary used here. Texas does not tax Social Security benefits under the current state-tax summary used here.
Where is long-term care cheaper, Arizona or Texas?
In the CareScout and Genworth 2025 medians, assisted living runs about $75,000 a year in Arizona and $67,992 in Texas; a semi-private nursing-home room is about $100,375 versus $67,525.