Texas may be one of the best states for retirement in the US in 2024, but it certainly doesn’t come out at the top. Discover our detailed ranking to uncover the Best State for Retirement in the US in 2024.
Meanwhile, here are our statistics on the Lone Star State:
Insider Monkey Score: 13
IM Healthcare Rank: 35
Cost of Living Index: 92.7
Tax Friendliness: Tax Friendly
If you’re one of the estimated 20% of adults aged 50+ having no retirement savings, it’s only but wise to retire to a state that can stretch the most of your retirement income. Based on our IM study, Texas is a retirement-friendly state in the US bearing the right mix of affordability and tax-friendliness. The cost of living in the state is 7.3% lower than the national average. According to Redfin, home prices in the state were 1.4% up year-over-year, selling for a median price of $352,000. For those considering buying a home, this is $74,056 lower than the national median of $426,056.
Meanwhile, the median rent for a two-bedroom property is $1,500 as per Zillow. This is quite affordable considering the median rent for 2-bedroom properties in the US is $1,906, making rents in Texas $406 lower than the national median. For the retiree going back to work, Texas yet again bears good news since the state doesn’t tax retirement income, and all income in the state goes to seniors tax-free. It also means that if you go back to work, you won’t be taxed on your income. All of this makes Texas a good state to retire on a fixed income just as much, since many retirees today only have their Social Security checks to fall back on.
Moving on to healthcare, Texas receives an IM rank of 35 of all states. While this isn’t exactly top of the charts, the state is satisfactory in terms of health. Some of the best hospitals you can find in Texas are Houston Methodist Hospital, UT Southwestern Medical Center, and Baylor St. Luke’s Medical Center in Houston, Dallas, and Austin, respectively.
Other pros of retiring to Texas are its abundant outdoor activities and warm climate. Home to many state and national parks, beaches, and even forests, seniors have abundant opportunities to hike, bike, camp, fish, and golf. Some of the best places for seniors to visit in Texas include San Antonio River Walk, the Space Center Houston, the charming town of Fredericksburg known for its wineries, and Austin, the live music capital of the world! For those who wish to know the cons of retiring to Texas, summer time can be quite tough. It’s true: summers can be really hot in Texas, with some of the most extreme temperatures recorded in the month of July.
All in all, retiring to Texas can be a good experience for seniors, especially those on a fixed income. If you wish to check out more on retiring to Texas, check out our take on the best places to retire in Texas.
Texas ranks 14th in our list of Best States to Retire in the US.
Click to see the 5 Best States to Retire in the US Better Than Texas.