The short version
- Social Security taxed?
- No
- Income tax
- No income tax
- Property tax on a $300,000 home
- ≈ $4,200 / yr ($350 / mo)
- Everyday cost index (U.S. = 100)
- 92
- January / July high
- 57°F / 96°F
- Sales tax (state + local avg)
- 8.20%
Retiring in Texas
No income tax and below-average living costs, with a senior property tax freeze. Watch out: property taxes are high before the freeze, and summers are scorching.
How Texas taxes your retirement income
Social Security: not taxed at all.
Pensions: No state income tax.
401(k) and IRA withdrawals: No state income tax.
The setup: No income tax.
Property tax & senior breaks
The average effective property tax rate is about 1.40% — roughly $4,200 a year ($350 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: $100,000 school homestead exemption plus an extra senior exemption and a tax ceiling (freeze) at 65+.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 8% below the U.S. average. The combined state and average local sales tax is 8.20%.
Weather
January days top out around 57°F and July days around 96°F, with roughly 234 sunny days a year. Watch out for: Extreme heat, hurricanes on the coast, hail, and rare ice storms.
Healthcare
Houston's Texas Medical Center is world-class; rural access has gaps.