Side-by-side for American retirees in 2026.
The default American retirement state — and still the #1 destination. No state income tax, no estate tax, year-round warm weather, and the country's largest retiree community.
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).
| No state income tax | Income tax | No state income tax |
| Exempt | Social Security | Exempt |
| All retirement income state-tax-free | Pension treatment | All retirement income state-tax-free |
| 0.82% | Property tax (effective) | 1.63% |
| 7.00% | Avg combined sales tax | 8.20% |
| 102.8 | Cost of living (US=100) | 92.6 |
| None (no estate or inheritance tax) | Estate / inheritance tax | None |
| Hot/humid year-round, especially May–October. Mild winters statewide. Hurricane season June–November. | Climate | Highly varied. Hot humid summers statewide. Hill Country mild winters; Panhandle has snow; Gulf Coast similar to Florida. |
| Strong — large hospital systems statewide (Cleveland Clinic Florida, Mayo Jacksonville, AdventHealth). Above-average Medicare Advantage options. | Healthcare | Strong in major metros — MD Anderson Cancer Center (Houston), Houston Medical Center, Dallas-area systems. Rural Texas healthcare is weaker. |
| The Villages, Sarasota, Naples | Top retirement cities | Fredericksburg, San Antonio, Georgetown |
$50,000 homestead exemption + 'Save Our Homes' 3% annual cap on assessment increases
$100K homestead exemption (2023) + senior 65+ school tax freeze + additional $10K senior exemption
Florida: The default American retirement state — and still the #1 destination. No state income tax, no estate tax, year-round warm weather, and the country's largest retiree community. Texas: 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). The right choice depends on your income mix, climate preference, and whether state income tax matters more to you than property tax.
No, Florida does not tax Social Security retirement benefits.
No, Texas does not tax Social Security retirement benefits.
Florida's cost of living index is 102.8 (US = 100). Texas's is 92.6. Texas is cheaper on average.
Enter your retirement income and see the after-tax difference between Florida and Texas in 30 seconds.
Open tax estimator →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.