The best texas retirement towns balance no state income tax with real healthcare access, and that combination is rarer than most retirees expect. Texas has no state income tax on retirement income, but property taxes are among the highest in the nation, so the savings picture is more complicated than the marketing brochures suggest.
Many retirees move to Texas expecting a windfall and discover that a $400,000 home in a desirable suburb can carry a five-figure annual tax bill. The problem isn't Texas—it's choosing the wrong town for your budget and lifestyle.
This guide covers five towns worth serious consideration, the data behind each, and the practical steps to verify a community before you sign a lease or buy a home.
Why Texas Towns Attract Retirees in 2026
Texas draws retirees for one dominant reason: no state income tax on Social Security, pensions, or 401(k) withdrawals. That single policy can preserve thousands of dollars annually for households with substantial retirement income, and it explains why so many best texas retirement towns lists start here.
The trade-off is property tax. The Texas Comptroller of Public Accounts explains that local governments levy the bulk of property taxes, and rates vary dramatically by county and school district. A homestead exemption helps, but it doesn't erase the gap.
Cost of living also varies widely. Rural West Texas towns offer housing at a fraction of Austin or Dallas prices, while college towns like College Station carry a premium for amenities and healthcare.
Climate matters too. The Gulf Coast brings humidity and hurricane risk; the Hill Country offers milder summers and drier air. Retirees with respiratory or heat-sensitivity issues should weigh this heavily.
How to apply this: Pull the current property tax rate for any county you're considering from the county appraisal district website before you tour a single home.
1. Georgetown: The Hill Country Favorite
Georgetown consistently ranks among the best texas retirement towns because it pairs a historic square with a large, active 55+ community. Sun City Texas, a Del Webb development, houses thousands of residents and anchors the local social scene.
The city sits about 30 minutes north of Austin, giving access to specialists at major hospital systems without downtown congestion. Median home prices run higher than rural alternatives, but the amenity density justifies it for many buyers.
Summers are hot, and the Hill Country's limestone soil means water conservation rules apply. Budget for higher utility costs from June through September.
One practical note: Sun City has age restrictions and HOA fees, so confirm the current dues and resale rules before committing. A common scenario is a couple buying for the amenities, then discovering the HOA covers exterior maintenance they didn't expect.
How to apply this: Request the HOA's current budget and reserve study from the seller's agent—it reveals pending assessments.
2. San Angelo: Affordable West Texas Living
San Angelo offers one of the lowest cost-of-living profiles among the best texas retirement towns, with housing well below state averages. The Concho River, a strong arts community, and Goodfellow Air Force Base support a stable local economy.
Healthcare is the limiting factor. The city has a regional hospital, but complex specialty care often requires a drive to San Antonio or Lubbock—roughly two to three hours depending on destination.
Water supply has been a long-running local concern, and the city has invested in reservoir and pipeline projects. Retirees should ask about water rates and conservation tiers when comparing utility costs.
Winters are mild and dry, which appeals to retirees leaving colder climates. Summer heat is intense but low humidity makes evenings comfortable.
How to apply this: Map the drive time to the nearest hospital that accepts your Medicare Advantage network before you commit.
3. New Braunfels: River Town With Regional Access
New Braunfels sits between Austin and San Antonio, giving residents two major medical markets within an hour. The Comal and Guadalupe rivers define the town's character and drive tourism revenue.
The trade-off is growth pressure. Rapid population gains have pushed home prices and traffic upward, and the small-town feel is fading in newer subdivisions. Retirees seeking quiet should look at established neighborhoods away from the river corridors.
Property taxes in Comal County run high relative to the state average, so run the numbers carefully. Homestead and over-65 exemptions help, but they don't eliminate the burden.
The German heritage downtown offers walkable dining and events, a genuine draw for active retirees, and it keeps New Braunfels on most best texas retirement towns shortlists despite the growth.
How to apply this: Check the Texas Workforce Commission regional data for local job and population trends—growth signals future tax and traffic pressure.
4. Wichita Falls: Low Costs and Four Seasons
Wichita Falls delivers some of the lowest housing costs among the best texas retirement towns, with a genuine four-season climate. Sheppard Air Force Base and Midwestern State University anchor employment and cultural life.
The city has faced tornado risk historically, and severe weather preparedness is a real part of living there. Home insurance premiums reflect that exposure, so get quotes before you buy.
Healthcare access is adequate for routine care, with larger specialty networks in Dallas-Fort Worth about two hours south. The city has invested in downtown revitalization and trail systems in recent years.
For retirees on fixed incomes, the math is compelling: lower housing costs free up budget for travel and healthcare.
How to apply this: Request three home insurance quotes for any specific address—premiums vary sharply by flood and wind zone.
5. Kerrville: Hill Country Quiet
Kerrville appeals to retirees who want Hill Country scenery without Georgetown's price tag or growth. The Guadalupe River runs through town, and the area supports a strong arts and music scene.
The VA hospital and Peterson Regional Medical Center serve local needs, though complex care means a trip to San Antonio, about an hour away. That proximity is a meaningful advantage over more remote Hill Country towns.
Housing ranges from riverfront properties to modest subdivisions, and prices have risen as remote workers discovered the area. Water availability and well permits matter for rural properties outside city limits.
For many buyers, Kerrville quietly outperforms louder names on any best texas retirement towns comparison, simply because it delivers scenery and services without the crowds.
How to apply this: For any rural property, confirm water rights and septic permits with Kerr County before making an offer.
Comparing the Top Texas Retirement Towns
| Town | Strength | Watch out for | Action to take |
|---|---|---|---|
| Georgetown | Amenities, 55+ communities | HOA fees, heat | Request HOA reserve study |
| San Angelo | Low housing costs | Specialty care distance | Check Medicare network coverage |
| New Braunfels | Two metro hospitals nearby | Growth, property taxes | Pull county tax rate |
| Wichita Falls | Cheapest housing, four seasons | Tornado and wind insurance | Get three insurance quotes |
| Kerrville | Scenery, VA hospital | Rural water and septic rules | Verify permits with county |
Use this table as a starting filter, then verify each item with primary sources. The American Association of Retired Persons publishes a livability index that scores communities on housing, transportation, and health—useful for cross-checking your shortlist of best texas retirement towns.
Tax and Healthcare Realities to Verify
No state income tax is the headline, but the full picture includes property taxes, sales taxes, and healthcare access. The IRS notes that Social Security benefits may still be federally taxable depending on total income, so state tax savings don't eliminate federal obligations.
Medicare Advantage networks vary by county. A plan that works in Dallas may have thin coverage in rural West Texas. Check network directories for each town on your list.
Homestead exemptions reduce assessed value for school taxes, and the over-65 exemption adds further relief. File promptly after closing—many counties require a specific form and deadline. These details separate a good decision from a costly one when you rank best texas retirement towns.
How to apply this: Use the Medicare Plan Finder to compare network coverage by ZIP code before you choose a town.
Frequently Asked Questions About best texas retirement towns
What is the cheapest Texas town for retirees on a fixed income?
Wichita Falls and San Angelo consistently rank among the lowest-cost options, with housing well below state medians. The catch is limited specialty healthcare and, in Wichita Falls, higher wind insurance premiums. Retirees should compare total costs—housing plus insurance plus utilities—rather than sticker price alone when evaluating the best texas retirement towns.
Do Texas retirement towns tax Social Security benefits?
Texas imposes no state income tax, so Social Security is not taxed at the state level. Federal taxation can still apply if your combined income exceeds IRS thresholds. A retiree with a large pension and 401(k) withdrawals may owe federal tax even in a no-income-tax state, so model your full tax picture.
Texas has no state income tax, so Social Security benefits aren't taxed at the state level in the best Texas retirement towns.
Federal rules may still apply above IRS thresholds, so ask a tax advisor before choosing among the best Texas retirement towns.
Which Texas town is best for retirees who need frequent specialist care?
Georgetown and New Braunfels win here because both sit within an hour of major Austin or San Antonio hospital systems. Retirees with chronic conditions should prioritize proximity over scenery. Among the best texas retirement towns, these two offer the strongest specialist access without urban congestion.
Is hurricane risk a dealbreaker on the Texas coast?
Not necessarily, but it changes the math. Coastal towns carry wind and flood insurance costs that can exceed property taxes in some cases. Retirees considering the coast should obtain flood zone determinations and wind quotes before buying, and confirm evacuation routes and shelter plans.
Hurricane risk isn't automatically a dealbreaker, but coastal insurance costs can reshape the math for the best Texas retirement towns.
Before committing to the best Texas retirement towns near the coast, request flood zone details and wind insurance quotes.
Can I keep my out-of-state Medicare plan when I move?
Usually not. Medicare Advantage and Part D plans are regional, so moving means selecting a new plan during a Special Enrollment Period. Check that your doctors participate in the new plan's network. This step is easy to overlook when comparing the best texas retirement towns and can create costly gaps in coverage.
Conclusion
Choosing among the best texas retirement towns comes down to matching three variables to your situation:
- Tax math: No state income tax helps, but property taxes and insurance can offset gains.
- Healthcare distance: Confirm specialist access and Medicare network coverage by ZIP code.
- Total cost of ownership: Housing, insurance, utilities, and HOA fees together tell the real story.
Start by pulling property tax rates and insurance quotes for your top two towns this week. Then verify Medicare network coverage before you schedule any home tours. That sequence prevents the most common and expensive retirement relocation mistake.
