Is Texas a Good State to Retire In?

Two people reviewing charts and financial plans, discussing whether is Texas goodstate to retire.

For many Americans approaching retirement, choosing where to live is as much a financial decision as it is a lifestyle one. If you’re asking, “Is Texas a good state to retire in?” the answer is: Absolutely. With no taxes on retirement income, property tax exemptions for seniors, a mild climate, and access to strong healthcare systems, Texas offers a compelling package for retirees looking to maximize both comfort and savings.

No State Income Tax on Retirement Income

One of the biggest financial advantages of retiring in Texas is its lack of a state income tax. This means retirees don’t pay state tax on:

  • Social Security benefits

  • Pensions

  • 401(k) or IRA withdrawals

  • Investment income or annuities

This allows retirees to keep more of their income, providing greater flexibility and peace of mind during retirement years. Compared to states that tax retirement income, the savings can be significant—especially for those living on fixed incomes.

Property Tax Benefits for Seniors

While Texas does have relatively high property taxes, it provides some important exemptions for residents aged 65 and older:

  • Senior Homestead Exemption: Homeowners 65 and older can qualify for an additional exemption that reduces their property’s taxable value.

  • School Tax Ceiling (Tax Freeze): Once you turn 65, school district taxes on your home are frozen, meaning they can’t increase—even if your property value rises.

These exemptions can significantly reduce the burden of property taxes for seniors, especially for long-term homeowners.

Mild Climate and Outdoor Lifestyle

Texas’s generally mild winters and sunny weather are a major draw for retirees escaping colder northern climates. Snow is rare in most of the state, and winters tend to be short and manageable. This makes Texas an excellent option for retirees looking to stay active year-round.

Outdoor enthusiasts will find plenty of options, from hiking in the Hill Country to relaxing on the Gulf Coast. Texas also boasts a rich cultural scene, diverse cuisine, and a strong sense of community across many regions.

Access to Quality Healthcare

Healthcare is a top priority for many retirees, and Texas delivers in this area as well. The state is home to world-renowned medical facilities, including the Texas Medical Center in Houston, the largest medical complex in the world.

Most major cities—such as Dallas, Austin, San Antonio, and Houston—offer a wide network of hospitals, specialists, and senior care services. For retirees who prioritize access to quality healthcare, Texas is a strong contender.

Final Thoughts

So, is Texas a good state to retire in? Without a doubt. Retirees enjoy no state tax on retirement income, property tax relief, a comfortable climate, and strong healthcare infrastructure. Whether you're looking for city living, quiet small towns, or beachfront retirement, Texas offers something for nearly every lifestyle.

Ready to plan your retirement in Texas? Reach out to us today for expert guidance on taxes. Dimov Partners stands ready for property planning and maximizing your retirement savings.

George Dimov