Retire by state
Retiring in Texas
Texas trades intense heat, high property taxes, and heavy disaster exposure for no state income tax and a huge range of places to settle.
A fit if
Retirees who want no state income tax, warm winters in much of the state, and a wide choice of cities, Hill Country, and coast.
Hard look if
People worried about high property taxes, brutal summer heat, or a long record of hurricanes, storms, and grid strain.
Figures verified May 31, 2026.
Cost of living
97
BEA index, U.S. = 100
State income tax
None
No broad income tax
Social Security
Not taxed
2026 state treatment
Town guides
9
Researched towns in-state
How the plan models Texas
The state lines the calculator actually changes.
These are the assumptions the planner applies for Texas. They are blended, middle-bracket planning figures, not a tax return. Exemptions, county rules, and your own income mix can move the real number.
Cost of living
97
BEA regional price parities put Texas about 2.9% below the U.S. average cost level. The U.S. average is 100.
BEA Regional Price ParitiesState income tax
None
Texas has no broad state income tax, but property tax, insurance, sales tax, vehicle costs, and local prices still belong in the plan. AARP lists Texas among states that do not tax IRA and 401(k) distributions in the summary used here.
Tax FoundationSocial Security
Not taxed
Texas does not tax Social Security benefits under the current state-tax summary used here.
AARP / IRS Pub. 915Property tax
1.8%
Property tax is local, but the Texas state-level planning rate used here is 1.8% of home value. On a $350,000 home, that is about $6,300 a year before county detail.
Tax FoundationSales tax
8.2%
Tax Foundation puts Texas's 2026 average combined state and local sales tax near 8.2%, ranked 14 among states in that table.
Tax FoundationVehicle costs
Registration line
Vehicle costs still belong in the budget, but the vehicle-tax source used here does not flag Texas as a state where value-based vehicle property tax is the main planning issue.
FreeTaxUSA vehicle-tax guideTexas tax note
Texas has no broad personal income tax in this summary. The state page keeps property tax, sales tax, insurance, utilities, and local housing visible because those lines can carry more of the cost story.
Long-term care in Texas
The care cliff, in Texas dollars.
CareScout and Genworth 2025 median costs, compared with the national median. Long-term care is a separate planning layer from ordinary Medicare costs.
Assisted living
$5,666/mo
About $67,992 a year, 9% lower than the national median.
Nursing home (semi-private)
$5,627/mo
About $67,525 a year, 41% lower than the national median.
Home caregiver
$5,720/mo
About $68,640 a year, 14% lower than the national median.
Things to do in Texas
What daily life can look like.
A large state park system
Texas Parks and Wildlife runs parks across deserts, hills, forests, and coast, from Colorado Bend to the Gulf. Many have easy trails, fishing, and campgrounds, and a state parks pass covers entry.
Texas Parks and Wildlife DepartmentBig Bend country
Big Bend National Park and the neighboring state park offer desert mountains, the Rio Grande, and some of the darkest night skies in the country. Scenic drives and overlooks make it possible to take in the views without a hard hike.
National Park ServiceHill Country towns and rivers
The Hill Country west of Austin and San Antonio is known for spring-fed rivers, wineries, and small towns popular with retirees. Many state parks in the area have swimming holes and gentle riverside trails.
Texas Parks and Wildlife DepartmentWhat to know about Texas
The trade-offs worth weighing.
No income tax, but high property taxes
Texas has no state income tax, so retirement income is not taxed by the state. The trade-off is some of the higher property tax rates in the country, which can be a real cost for homeowners on a fixed income.
Texas Comptroller of Public AccountsHeavy disaster exposure
From 1980 to 2024, 190 billion-dollar weather disasters affected Texas, more than any other state, including 16 tropical cyclones and many severe storms. Hurricanes on the coast, hail and tornadoes inland, and a 2021 winter freeze that strained the power grid are all part of the record.
NOAA National Centers for Environmental InformationLong, intense summer heat
Summers across much of Texas are long and very hot, with stretches above 100 degrees in many areas. Air conditioning is essential, and the heat drives up summer electric bills.
NOAA National Centers for Environmental InformationRetirement towns in Texas
Towns we have mapped in Texas.
Weighing two states?
Put Texas next to another state.
Compare cost of living, taxes, Social Security treatment, property and sales tax, and long-term-care costs side by side.
Common questions
Retiring in Texas, answered.
Does Texas tax retirement income?
Texas does not tax Social Security benefits under the current state-tax summary used here. AARP lists Texas among states that do not tax IRA and 401(k) distributions in the summary used here. Texas has no broad state income tax, but property tax, insurance, sales tax, vehicle costs, and local prices still belong in the plan.
AARP: how states tax retirement incomeIs Texas cheaper or more expensive than average?
BEA regional price parities put Texas about 2.9% below the U.S. average cost level. That price level is the first reason a national retirement number needs a Texas translation.
BEA Regional Price ParitiesWhat does long-term care cost in Texas?
In the CareScout and Genworth 2025 medians, Texas assisted living runs about $67,992 a year (9% lower than the national median) and a semi-private nursing-home room about $67,525 a year (41% lower than the national median).
CareScout / Genworth Cost of CareWhich towns in Texas have a retirement guide?
Texas has 9 researched town guides: Austin, Dallas, El Paso, Fort Worth, Georgetown, Houston, McAllen, San Antonio, The Woodlands. Each one breaks down local costs, services, and things to do.
Does Texas tax retirement income?
Texas has no state income tax, so Social Security, pensions, and retirement withdrawals are not taxed by the state. Property taxes, however, are among the higher ones in the country, so the local rate matters a lot.
Texas Comptroller of Public AccountsSources
- BEA Regional Price Parities
- Tax Foundation: state tax data
- AARP: how states tax retirement income
- CareScout / Genworth Cost of Care
- IRS Publication 915 (Social Security benefits)
- Texas Parks and Wildlife Department
- National Park Service
- Texas Comptroller of Public Accounts
- NOAA National Centers for Environmental Information
- Texas Comptroller of Public Accounts
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