Planning on Retiring in Texas? Here’s Your 2025 Guide to Shining in the Lone Star State

If you’re looking for a great state to spend those golden years in, you should definitely consider retiring in Texas. Is Texas a good place to live? Plenty of people certainly think so. The Lone Star State is the second-largest state in the country, which means you’ll have all kinds of options when you’re ready to settle down into retirement.

Whether you prefer city living or small-town charm, Texas is filled with affordable options. In fact, retirees from all walks of life can find a home in Texas. It’s full of friendly communities with lots of outdoor opportunities and more space for your money, just to name a few benefits.

From bustling big cities and towns near the ocean to quiet places on the plains, there’s no place quite like Texas! If you’re considering retiring in Texas, here’s some information to help you make your decision.

What Are the Benefits of Retiring in Texas?

When you think of Texas, chances are, you think of wide open spaces, beautiful Gulf beaches, and friendly hospitality. And you wouldn’t be wrong! Texans are known to be very welcoming, which is important to those looking for a safe place to spend their golden years. 

One of the major benefits of retiring in Texas is its mild weather. If you’re done shoveling snow and dealing with ice, then Texas would be a great retirement choice. 

It also has a relatively low cost of living compared to other popular places among retirees. It’s important to note that the cost of living will vary depending on whether you choose to live in a larger city or a smaller town, though.

Sure, a low cost of living is important, but what about taxes? Is Texas tax-friendly for retirees? Yes! Texas rates low on the list of states with a high tax burden. Texas is generally considered very tax-friendly for retirees due to its lack of a state income tax, which means social security, pensions, and retirement account withdrawals are not taxed at the state level.

And did we mention Texas has 367 miles of Gulf shoreline? That means there’s plenty of coastal area available if you've always wanted to retire close to the beach.

Retiring in Texas — FAQs

Q: Is Texas a good state for retirees?
A: Is Texas a good place to retire? Yes, Texas is a wonderful state for retirees! With no state income tax, affordable housing, and lots of recreational opportunities, Texas should be high on your list.

Q: What part of Texas is best for retirees?
A: Almost all areas of the Lone Star State have vibrant communities that could be considered the best places to retire in Texas, but being close to a large city like Houston, San Antonio, or Dallas allows retirees to enjoy activities, restaurants, shopping, and easy access to top-quality healthcare facilities. All of the places mentioned in our “best place to live in Texas for retirees” section are within easy driving distance of a larger city.

Q: Is it better to retire in Texas or Florida?
A: That’s a personal decision, of course, but Texas does offer a lower cost of living and more access to affordable housing, compared to Florida. 

Q: Where is the best place to retire on Social Security in Texas?
A:  If you’re living off of your social security benefits, you may want to consider these best places to retire in Texas on a budget: Athens, Lufkin, Port Arthur, Lubbock, and Midland. 

Looking for a low cost of living and easy access to the outdoors? Then you’ll love retiring in Texas.

Retiring in Texas: Pros and Cons

If you’re considering retiring in Texas, it’s important to do your research. Everyone’s situation is different, but typically, the best places to retire in Texas are affordable, have lots of entertainment options, have access to quality healthcare, and are in a safe community. And while the Lone Star State offers all of this (and more!), it’s important to cover both the pros and cons of moving to Texas.

Pro: Affordable Cost of Living

Texas has an affordable cost of living, coming in at 94.2 — almost six percent below the national average index of 100. Things like groceries, entertainment, utilities, and housing are all below the national average (fantastic news for retirees on a budget). 

The housing cost in Texas, in particular, is 83.5, over 16 percent below the national average index of 100, so you can expect to find the retirement home of your dreams for a lot less than you would in other states.

Con: Severe Weather and Natural Disasters

Because Texas is so big, depending on where you choose to settle down, you may experience some severe weather. This can mean tornadoes, thunderstorms, floods, and possibly hurricanes on the coast. 

Pro: Limitless Outdoor Activities

Retiring in Texas means getting to make the most of the great outdoors. Texas has all kinds of beautiful areas for you to live — whether that’s the coast, the prairies, the canyon country, or the hill country. Suffice it to say, you’ll never get bored living in any of these picturesque locales. And once you’re a local, you can take advantage of plenty of fun outdoor activities, like walking, boating, fishing, horseback riding, or simply sitting outside and enjoying the view.

Con: Tough Summer Climate

Texas has relatively mild weather throughout the year, but it is susceptible to very high temperatures in the summer. Between May and September, 90-degree days are normal, and you can expect plenty of humidity and sunshine. The chance for high heat indexes may vary, depending on where you live in the state.

Pro: Top-Tier Healthcare

In Texas, you’ll find that you’re never far from a great healthcare system. Whether you need to manage chronic conditions, are looking for a specialist, or just need a primary care physician, Texas has plenty of world-class options, including Houston Methodist Hospital, UT Southwestern Medical Center, or MD Anderson Cancer Center, if you’re in need of more specialized care. 

Con: Big-City Crime Rates

Texas has some large cities — including Houston, Dallas, and San Antonio — and with larger cities come higher rates of crime. If you want to retire to a large city, make sure you do your research and find a safe senior community that meets your needs. 

Is Texas a good place to retire? It is from a tax perspective, as social security, pensions, IRAs, and 401(k)s are not considered taxable income.

How Much Money Do You Need To Retire Comfortably in Texas?

According to Yahoo! Finance, to retire comfortably in Texas for 30 years, you’ll need $2,447,345 in savings. But don’t let that number scare you. This comes out to just over $81,000 annually. This can vary from location to location, though, and of course, how much money you need to retire comfortably in Texas depends on factors like your particular lifestyle and how much you saved up for retirement. 

One of the major benefits of retiring in Texas? It’s a low-tax state. There are no state income, inheritance, or estate taxes, and the especially good news for retirees is that social security, pensions, IRAs, and 401(k)s are not taxed either. This means you’ll have more money in your pocket to enjoy hobbies, spend time with family, or explore your community!

It’s important, however, to be aware that, although Texas has no estate taxes, the local property taxes can be high depending on where you choose to live. But to help seniors with this, those 65 and older can claim an additional $10,000 exemption on their homes on top of other exemptions available to Texas homeowners.

The sales tax in Texas is 6.25 percent; however, many items are not subject to this tax, including:

• Prescription medications
• Groceries
• Over-the-counter medication

The Best Places To Retire in Texas

1. DeCordova, TX

• Average rent (one-bedroom): N/A
• Average home value: $384,500
• Great for: Housing, cost of living, weather, health and fitness options

DeCordova is one of the best small towns in Texas to retire. In fact, residents think it’s one of the best-kept secrets in the state. It’s a safe, gated community located right on Lake Granbury and is only 45 miles from Dallas-Fort Worth. That means you’ll get the best of both worlds: A small community to live in with easy access to dining, attractions, and entertainment in the big city.

Although home to families and professionals, DeCordova is a great place for seniors because there are a lot of ways to stay entertained in the area. You can enjoy visiting the local businesses, getting in a round of golf at one of the six golf courses, or walking the trails along the lake and taking in the beautiful scenery. Lake Granbury is also a great place for boating or fishing, and locals love stopping by Abby’s Restaurant for a bite afterward.

2. Bullard, TX

• Average rent (one-bedroom): $925
• Average home value: $378,000
• Great for: Cost of living, safety, housing

Located in the east-central part of the state, you’ll love the neighborly and outgoing community that surrounds you in Bullard. You can enjoy small-town fun like decorating the town Christmas tree, going to farmers’ markets, or watching the fireworks on the 4th of July. 

Bullard is close to larger cities like Tyler, and you have easy access to Lake Palestine and all the outdoor fun available there, especially if you like fishing! Don’t feel like you have to compete in the local bass tournament to have a good time, though. Lots of folks just love all the boating, camping, and walking options this man-made reservoir offers. 

You can also enjoy a round or two of golf at the Eagle’s Bluff Country Club. And when the grandkids visit, you can take them to the nearby Caldwell Zoo. When you’re done, make sure to visit Hondo and Shorty’s for burgers or Milano’s Pizza for a slice.

Barton Creek in Austin is the best place in Texas for retirees who want to be close to the live music capital of the world — you’re just 8 miles from the beautiful Barton Springs!

3. Barton Creek, TX

• Average rent (one-bedroom): $2,425
• Average home value: $2.2M
• Great for: Health and fitness, outdoor activities

Wanting to retire near Austin? Then you should consider Barton Creek. It’s a mere 30-minute drive from the big city. In Barton Creek, there’s always time for a golf game at the Westlake Country Club, or you can go hiking or bird watching in the Barton Creek Habitat Preserve.

And, of course, when you want to make that short drive to Austin, you’ll have access to world-class entertainment options like:

• The Zilker Botanical Garden
• The LBJ Presidential Library
• The Blanton Museum of Art
• Wimberley Glassworks
• Mexic-arte Museum
• The Austin Symphony Orchestra
• And more!

Bring the grandkids along and enjoy a day at the Kalahari Resorts or the Museum of Ice Cream!

It’s also the live music capital of the world, so you won’t have a hard time finding music of all genres to listen to. And when you’re ready to grab some delicious fare, consider stopping into CARVE or Nopales.

4. Taylor Lake Village, TX

• Average rent (one-bedroom): $1,425
• Average home value: $386,900
• Great for: Health and fitness, housing availability, cost of living

Located in Harris County, Taylor Lake Village is a Houston suburb that offers residents a quiet, family-friendly lifestyle. This scenic lakeside community of around 4,000 residents provides a relaxed lifestyle with abundant outdoor activities, including boating, fishing, and hiking in nearby parks like the Armand Bayou Nature Center.

Just a short drive into Houston provides plenty of entertainment for the 55+ crowd. Enjoy baking homemade pies? Gather some friends and pick berries at Morehead’s Blueberry Farm. Want to try making your own mosaic? Sign up for a workshop or class at The Orange Show Center for Visionary Art. Want a peek at all the top attractions in Houston? Invest in a CityPASS® and enjoy exploring.

When you’re ready for a bite, take a seat on the patio at The Backyard or watch the boats while enjoying some local seafood at Sammy G’s Bar and Grill.

5. Highland Park, TX

• Average rent (one-bedroom): $1,650
• Average home value: $2.8M
• Great for: Nightlife, outdoor activities, entertainment options

Located just north of Dallas is the lovely area known as Highland Park. You can expect well-maintained streets, beautiful homes, friendly neighbors, and lots of ways to get involved in the community if you spend your retirement years here. 

Want to practice your golf swing? Check out the Dallas Country Club. Interested in staying active elsewhere? You can always walk or bike around Turtle Creek and Exall Lake.

You can also scoot over to the Highland Park Village for any and all shopping needs. Be sure to check out what’s on the menu at the upscale Cafe Pacific or Sadelle’s!

Of course, the bustling city of Dallas offers all kinds of amazing options when it comes to a night out on the town or a fun afternoon with the grandkids. Some of the top amenities include:

• The George W. Bush Presidential Center
• Perot Museum of Nature and Science
• Dallas Museum of Art
• Lots of pro sports! Catch a Cowboys, Mavericks, or Stars game
• And so much more!

Best Places To Retire in Texas on a Budget

Looking for an affordable option to retire in Texas when you’re on that retirement budget? You’re not alone. Lots of retirees are conscious of keeping their living expenses low. Consider these charming options:

• Athens
• Lufkin
• Port Arthur
• Lubbock
• Midland

Once you’ve decided on retiring in Texas, let PODS help you with the relocation.

Retiring in Texas: Making the Move With PODS

When you’re ready to move to one of the best places to retire in Texas, enlist the help of PODS to get you there. PODS makes your move more flexible with convenient portable containers delivered right to your doorstep. Load at your own pace, keep your container close by for as long as you need it, and let PODS handle transporting it to the place you’ve determined to be the best city to retire in Texas.

One month of storage is built into the cost of every move, so you can take your time packing and loading. And PODS can even give you suggestions for local packing and loading help to make moving into your new home that much easier.

You’ve weighed the “retiring in Texas” pros and cons. You’ve selected a new location to call home. Don’t wait any longer for your dream retirement in Texas to begin. All you need to do is get a free local moving quote online or call 877-350-7637 for long-distance moving.

Editor’s note: Average rent prices were obtained from RentCafe and Zumper; and average home values were obtained from Zillow. For ease of reading, monthly rental prices were rounded to the nearest $25 and home values were rounded to the nearest $100. Home values in the millions were rounded to the nearest $100,000.