Big, varied, and tax-friendly. No state income tax, lower cost of living than Florida, and three distinct retirement regions (Hill Country, Gulf Coast, North Texas).
| State income tax | No state income tax |
| Social Security | Fully exempt |
| Pensions & 401k/IRA | Not taxed (no state income tax) |
| Avg combined sales tax | 8.20% |
| Estate / inheritance tax | None |
Effective property tax: 1.63% (ranked #47 of 50 states).
$100K homestead exemption (2023) + senior 65+ school tax freeze + additional $10K senior exemption
Cost of living index: 92.6 where the US average is 100 — about 7% cheaper than the national average.
Highly varied. Hot humid summers statewide. Hill Country mild winters; Panhandle has snow; Gulf Coast similar to Florida.
Strong in major metros — MD Anderson Cancer Center (Houston), Houston Medical Center, Dallas-area systems. Rural Texas healthcare is weaker.
Fredericksburg, San Antonio, Georgetown
No, Texas does not tax Social Security retirement benefits.
No state income tax. All retirement income state-tax-free.
Texas's cost of living index is 92.6 where the US average is 100. Effective property tax averages 1.63% and combined sales tax averages 8.20%.
Popular retirement spots in Texas include Fredericksburg, San Antonio, Georgetown.
Enter your retirement income and estimate what you'd actually pay in Texas in 30 seconds.
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Tax data current as of 2026 publication. Rates and rules change annually — verify with a CPA before relocating. This page is educational and not personalized tax or legal advice.