Best Places to Retire in Texas

Texas does not have a state income tax, which can be beneficial for retirees receiving income from pensions or investments. However, property taxes are generally higher than the national average and can vary significantly by county and municipality. Sales tax is also applied to most goods and services. Homestead exemptions are available, which can reduce the taxable value of a primary residence for homeowners, including those over 65 or with disabilities.

Major metropolitan areas like Houston, Dallas, San Antonio, Austin, and Fort Worth typically provide extensive healthcare options, including large hospital systems, specialized medical centers, and a wide network of physicians. Smaller cities near these hubs, such as The Woodlands (near Houston) or Georgetown (near Austin), often benefit from proximity to these larger healthcare resources while offering a different pace of life.

While Texas is generally car-centric, some cities and specific neighborhoods offer better walkability. Historic downtown areas, such as those found in Galveston, Fredericksburg, or parts of San Antonio (e.g., near the River Walk), can be more pedestrian-friendly. Planned communities and specific urban districts in larger cities are also increasingly designed with walkability in mind, often featuring mixed-use developments and pedestrian pathways.

Texas has a diverse climate. The Gulf Coast (e.g., Galveston, Corpus Christi) experiences hot, humid summers with milder winters and a risk of hurricanes. Central Texas (e.g., Austin, San Antonio) has hot summers and mild, generally dry winters. North Texas (e.g., Dallas-Fort Worth) sees hotter summers, colder winters, and is part of Tornado Alley. West Texas is arid with hot days and cooler nights. South Texas (e.g., McAllen) has very hot summers and very mild winters, with high humidity. Retirees should consider their tolerance for heat, humidity, and potential severe weather events.

Many Texas cities have a growing number of 55+ active adult communities. Areas around larger metropolitan centers are popular, such as Georgetown and Lakeway near Austin, The Woodlands and Sugar Land near Houston, and Frisco and McKinney in the Dallas-Fort Worth metroplex. Cities in the Rio Grande Valley, like McAllen and Harlingen, are also known for attracting a significant winter Texan population and offer numerous age-restricted communities.