13 Best Places To Retire In Texas

If you’re thinking about the best places to retire in Texas, know that its sheer size provides retirees with a wide selection of big cities near to Dallas, charming college towns like College Station, seaside beach towns like Galveston and the one-of-a-kind state capital, Austin to settle down in.

The low tax rates in Texas invite many to retire in the Lone Star State. With no state income tax in Texas, Social Security retirement benefits and all other types of retirement income are tax-free. And, whether you have a 401(k), pension or IRA, Texas will not tax your retirement income. That can mean thousands of dollars a year in tax savings as compared with other states. Likewise, if you plan on working part-time during retirement, Texas will not take your work income. Texas is an especially good location for those planning on such a “worktirement,” thanks to its relatively low unemployment rate.

The Lone Star State’s friendly retirement income tax laws, along with its low cost of living, can compensate for other taxes that may put a dent in a senior’s budget. But do keep in mind that Texas has some of the highest sales taxes and property taxes of any U.S. state.

Where To Retire In Texas

1. Katy

Located just a half hour west of Houston, Katy is one of the best places to retire in Texas as the town has 17.60 medical centers per 1,000 residents. It also has good proximity to Houston where you can enjoy all the amenities the big city offers while living in a small, quaint town.

It also leads this list in terms of recreation centers, with 3.61 recreation centers per 1,000 residents.

2. Granbury

Located west of Fort Worth, Granbury has 0.80 retirement communities per 1,000 residents, the highest number of any city on this list. That means that there are plenty of places for you to move where you’ll find a built-in community as seniors account for 29.70% of Granbury’s population. Granbury is also located just an hour from Dallas.

As an added bonus, the tax burden in Granbury is 15.30%.

3. Woodway

One of the best places to retire in Texas is Woodway. This is a suburb of Waco with 10.61 medical centers per 1,000 residents. The tax burden for the town is 16.70%.

While this can increase the cost of living, this rate is still relatively low compared to some other states. Woodway also has 1.50 recreation centers per 1,000 residents.

The city is located just 10 minutes from Waco, the home of Baylor University. This translates to easy access to all of the charms of a college town, including sports and culture.

4. Livingston

Livingston is another Houston suburb, where the tax burden is 15.30%.

Livingston also has 7.66 medical centers per 1,000 residents, 1.53 recreation centers and 0.57 residential communities per 1,000 residents. Livingston is a good place to retire if you’re into boating and fishing, as it’s very close to the Trinity River.

5. Fredericksburg

Central Texas’ Fredericksburg offers easy access to both Austin and San Antonio. Known as the peach capital of Texas, Fredericksburg boasts abundant agritourism.

The town has a 15.30% tax rate and 4.34 medical centers per 1,000 residents. The city’s population is 30% senior citizens which is quite high. There are also 0.46 retirement communities per 1,000 residents.

6. Richmond

Another town near Houston, Richmond boasts a tax rate of 15.20%. It has 7.31 medical centers per 1,000 residents, which is on the lower end for this list, but is still a good number compared to cities in some other states.

With 2.02 recreation centers per 1,000 residents, Richmond is greatly known for its number of recreation centers.

The town is close to big cities like Houston and Sugar Land, both of which offer plenty of options for recreation and entertainment.

7. Tomball

Located north of Houston, Tomball ranks fourth on this list in terms of medical centers, with 8.76 medical centers per 1,000 residents. It has a 16.70% tax burden.

Tomball also has 1.25 recreation centers and 0.36 retirement communities per 1,000 residents.

Houston and its cultural attractions are just over half an hour from Tomball.

8. Webster

Set to the southeast of Houston, Webster is one of the best places to retire in Texas as it is the second most medical centers of any city on this list with 13.28 medical centers per 1,000 residents.

However, it has a tax burden of 16.70%.

In addition to being close to Houston, Webster is close to the Trinity Bay portion of Galveston Bay. It is near the Armand Bayou Nature Center, where you can see more than 370 species of animals at what is the nation’s largest urban wilderness preserve.

If you’re interested in a city with a high population of seniors, Webster might not be for you though as seniors account for just 10.40% of its population.

9. Humble

Located north of Houston, Humble has 8.44 medical centers per 1,000 residents.

Humble has a tax rate of 16.20%.

It has 2.00 recreation centers per 1,000 residents meaning that Humble has the second-to-lowest senior population of any city on this list, with seniors comprising just 10.60% of the population.

10. Burnet

Burnet is a central Texas city located just an hour north of Austin.

It boasts the lowest tax burden at just 14.90%.

However it has the fewest medical centers at 1.64 per 1,000 residents and the fewest recreation centers at 0.66 per 1,000 residents.

The good news is that it is close to Austin and the University of Texas and also close to attractions like the Longhorn Cavern State Park and the Highland Lakes Air Museum nearby.

11. Port Arthur

Port Arthur is an exciting town on the Gulf Coast, and one of the best Texas cities for retirees! Port Arthur boasts a fun culture and a low median home price, making it perfect for active adults living on a fixed income.

If you’re thinking about a beachside retirement, but you don’t want to deal with gators, life in Port A has the benefits of a Florida destination retirement, minus the massive reptiles and higher cost of living.

It boasts a low tax burden at just 8.25%.

12. Harlingen

Harlingen is another place for retirees. Who wouldn’t love the idea of a low cost of living, beautiful scenery, and a fun culture?

Numerous parks, including the Lower Rio Grande National Wildlife Refuge and the Huge Ramsey Nature Park showcase the beautiful wetlands of the Valley, and give active adults cool places to explore, so you’ll always have something to do.

13. Socorro

Socorro is a fantastic suburb of El Paso on the banks of the Rio Grande river offering a great community for retirees. It offers easy access to a bustling metro, while still providing them with a safe and private neighborhood to call home.

It boasts a low tax burden at just 8.25%.

Its low median home value comes in under $100,000, making it a great place to settle down on a limited budget.