Retirement opens a whole new chapter full of possibilities. Picking the right place to spend your golden years is key to creating a high quality of life while on a fixed income. Texas’ lively culture and diverse choice in communities make it a popular choice for many retirees. But, like any state, life here has its pros and cons. Take a balanced look at retiring in Texas so you can make the best decision for you.

Pros of Retiring in Texas

Lower Cost of Living

One of Texas’s most appealing aspects for retirement is its generally lower cost of living. Using an index, where the national average costs are “100,” Texas comes in below average. For 2023, Texas has an index of 92.7, ranking the Lone Star State a comfortable 19th place for overall living costs.

When we break down how that money was spent, housing, healthcare, and groceries came in as more affordable. Having these expenses lower matters for retirees. The Texas median home price in 2023 was $348,000, well below the national average of $400,000. Housing is usually the largest expenditure in individual budgets, and healthcare costs increase as we age. Savings in these areas can help when on a fixed-income budget. 

Of course, the actual cost of living depends on your lifestyle and where you live in Texas. Still, it’s a good sign that you can comfortably live on a fixed income. You can control some of your housing costs by buying in an affordable housing market.

No State Income Tax

Texas is one of the few states that does not impose a state income tax. There’s no trying to find out if your pension, Social Security, or withdrawals are subject to tax. The answer is no.

More of your hard-earned retirement savings stay in your pocket, allowing for greater financial freedom.

Warmer Weather

Every state has climate quirks, and none are exempt from severe weather. But looking at the big picture, it’s about what you are willing to tolerate as you age.

Those who dread cold winters will delight in Texas’ year-round warm climate. Its overall temps fall on the hotter side. Given the state’s size, what you’ll encounter varies regionally. The southern and coastal regions are hotter and more humid, while northern Texas can see some ice and snow.

However, you’ll generally have mild winters. And that means more time to enjoy your favorite outdoor activities in retirement.

Healthcare

Texas is home to some world-renowned medical centers. The cream of the crop is the Texas Medical Center in Houston. It’s not one exceptional hospital or one teaching facility. This is an unparalleled 100-acre medical campus. Find multiple research centers, teaching hospitals, and specialized medical care facilities. People travel to it from out-of-state specifically because of healthcare experts and cutting-edge research.

Access to high-quality healthcare is a significant advantage for retirees. Your medical needs will change over time. Being in Texas, you’ll know you can seek the best care for any issue.

Limitless Outdoor Activities

Be in awe of the state’s natural beauty wherever you go, from the Hill Country to the Gulf Coast. Picture yourself on scenic hiking trails meandering into valleys or high on ridgelines, or fishing in quiet lakes and rivers. Golf world-class courses with century-old esteemed country clubs complete with tennis and swimming facilities. Hunt on wild ranch lands for game, or head out bird-watching in diverse habitats. Camp under starry skies, with some designated dark sky zones delivering unprecedented views. Dive into water sports along the coastline, letting the Gulf breezes fill your sails or heading further into the sapphire waters on a deep-sea fishing charter.

Your outdoor opportunities in Texas include 14 national parks and historic sites, 89 state parks, and hundreds of county and city parks. These beautiful parks include Caddo Lake State Park, Palo Duro Canyon State Park, and Big Bend Ranch State Park.

With its varied landscapes, Texas is a playground for outdoor enthusiasts! Even in the major cities, like Dallas-Fort Worth, find multiple recreational activities from kayaking the Trinity River, bicycling miles of pedestrian trails, or attending sporting events. 

Big State, Lots of Choices

Texas’s vast size means retirees have endless choices in living environments. If you love the energy of a major city like Houston or Dallas, it’s there. Charming suburban communities like The Woodlands or Plano pack in convenient amenities, like golf courses or recreation centers. Or, Texas’ quiet, wide-open spaces with small towns and rural areas may suit your taste. The Texas Hill Country is famous for its bluebonnets and pristine lakes, the wineries, and the hidden caves.

Whatever lifestyle you’re thinking about for your retirement, chances are high that somewhere in Texas is the right place. Not only do you have urban or rural, but you can live waterfront, in rolling hills, desert plains, or near forests. 

Lots of Culture and Entertainment

Texas has all the art, history, music, and food to keep you entertained and busy as a retiree. Cities like Austin, Houston, Dallas, and San Antonio are cultural hubs bursting with activities. 

Experience a melodic live music scene in Austin and annual events like South by Southwest. Houston has the world-class Museum District and the renowned Houston Livestock Show and Rodeo. The Dallas Arts District is the largest of its kind in the United States; it hosts cultural festivals throughout the year. Fort Worth still has cattle drives at its historic Stockyards.

But even outside the cities, Texas delivers on cultural fun. Find local town rodeos, cattle drives, music festivals, and art events. Check out historical sites like The Alamo in San Antonio and the San Jacinto Battleground in La Porte. Fredericksburg’s German-inspired architecture is unique and makes it a fun place to live. 

Cons of Retiring in Texas

Severe Weather Threat

Nature throws Texas big curveballs in the form of hurricanes, tornadoes, and severe thunderstorms. What weather risk is most prevalent depends on where you live in Texas. The Gulf Coast region and Houston metro face hurricane and flooding risks. More northern areas fall into Tornado Alley or deal with ice storms and cold weather blasts. The central plains have warm weather than turns into blistering heat indexes, with weeks of 100F and higher temperatures.

These natural disasters can seriously damage homes and infrastructure, putting residents at risk. As a retiree, first know the local climate risks. You might need specific insurance coverage to cover potential financial losses. To prepare, have an emergency plan, secure your property, and stock up on supplies. It may be smart to invest in a generator for extended power outages. 

Healthcare Access Isn’t Equal

While Texas has excellent medical facilities, access to quality care can be uneven. Lack of access is more pronounced in rural areas, as simply having enough medical providers for general care can be challenging. 

Living rural may mean commuting to larger towns for specialty care. That increases health care costs and expenses while in retirement. Research healthcare services available in the specific area where you plan to retire. 

Long Distance to Some Places

Size is great for variety, but it does have a downside. Traveling within Texas can involve long distances. Taking Interstate 10 from one side to the other is ten hours, give or take traffic! The drive from El Paso on the southwestern border to Texarkana on the northeastern border can take 12-15 hours. Even the larger cities are famous for their urban sprawl, where it can take an hour to cross from one side of the metro to the other.

Decide where to live in Texas based on what matters to you. It could be proximity to family, specialized services, or recreation. Picking the right region will enhance the quality of life you’ll have as a retiree.

High Property Taxes

While you’ll save on income taxes, there’s always a trade-off. Property taxes in Texas tend to be high, which can burden retirees living on a fixed income. As of 2024, Texas had the sixth-highest average effective property tax rate. Homeowners paid 1.68% of their home value in property taxes. Do factor property taxes into your financial planning and housing costs.

The good news is that Texas has additional exemptions for persons 65 and older to ease the property tax burden. A $10,000 value exemption can reduce school district taxes. Disabled veterans and surviving spouses also have additional property tax exemption options. Also, check out reductions for solar and wind-energy devices and inherited residences.

City Traffic

Texas cities are notorious for their traffic congestion. Houston cracked into the top ten most congested cities for 2023. Part of the reason is that Texas cities have been built outward rather than upward, leading to urban sprawl. They also have been built to rely on vehicle transportation rather than public transportation.

More cars on the road extend commuting times and bump up the general frustration of city living. You can’t control bus and rail routes, but you can adjust where you live. Reduce commutes by living closer to the places you plan to frequent as a retiree.

Limited Public Transport

Public transportation options can be limited, particularly outside of major cities. This might require retirees to own a car. That could become an inconvenience or additional expense. If age-related impairments impact your driving ability, the lack of public transportation will become a hurdle.

Retiring in Texas

Affordable living and no state income tax are bonuses to retirement in Texas. However, weigh the drawbacks. Severe weather, unequal healthcare access, and high property taxes mean picking where to live in Texas is vital for the best retirement life. Get more specific insights and ask a local Texas real estate expert what life is like near them. 

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The Lone Star State is a popular retirement destination. Here are seven pros and six cons of retiring in Texas. 

FAQs

Are there retirement living communities in Texas?

The Lone Star state makes it easy to live an active adult lifestyle in communities packed with perks just for the retirement set. These close-knit communities have amenities for retirees like fitness facilities, biking trails, swimming pools, and social clubs. All Texas regions have retirement communities, but some of the state’s largest are:

• Sun City Texas, Georgetown
• Kissing Tree, San Marcos
• Robson Ranch, Denton
• Frisco Lakes, Frisco
• Hill Country Retreat, San Antonio
• Del Webb Sweetgrass, Richmond
• Heritage Ranch, Dallas-Fort Worth Area
• Chambers Creek, Willis

Where are there excellent healthcare facilities in Texas?

Quality healthcare is scattered across Texas, but it is concentrated in the largest cities. The top-ranked hospital in 2024 was the Houston Methodist Hospital in Houston, TX. It had ten nationally ranked specialties. However, the other top-performing care centers were:

• UT Southwestern Medical Center, Dallas
• Baylor University Medical Center, Dallas
• Baylor St. Luke’s Medical Center, Houston
• Memorial Hermann Hospital, Houston
• Baylor Scott and White Medical Center, Temple

How much money do you need to retire in Texas?

The answer will depend on the housing prices of the area you settle in, your lifestyle, and your healthcare needs. In 2024, the required annual income for a single adult would be $37,923 after taxes. This figure would rise each year due to inflation and changes in the cost of living. It’s also a statewide average. In Tarrant County, part of the Dallas-Fort Worth metro, that changes to $39,978, but in El Paso County that figure is $33,002.

What are some of the best places to retire in Texas?

Based on their housing costs, recreational opportunities, and access to quality healthcare, the following communities pop up again and again as top retirement destinations in Texas:

• Fredericksburg
• The Woodlands
• Corpus Christi
• San Antonio
• Austin
• Granbury
• Beaumont
• Brownsville