No Income Tax • 300 Days of Sun • World-Class Healthcare

Retiring in Austin

No state income tax. 300 days of sunshine. World-class healthcare. Live music every night. Here's everything you need to know about retiring in Austin, Texas.

Why Austin?

No State Income Tax

Texas has no state income tax. Your Social Security, pension, 401(k), and investment income are tax-free at the state level. This alone saves most retirees $5,000-15,000/year compared to California or New York.

300 Days of Sunshine

Average 300 sunny days per year. Mild winters (avg January high: 62°F). Hot summers, yes, but AC is everywhere. You can be outdoors year-round — hiking, swimming, golfing, kayaking.

World-Class Healthcare

Dell Seton Medical Center (Level 1 trauma), St. David's (5 hospitals), Ascension Seton, Baylor Scott & White, VA Outpatient Clinic. UT Dell Medical School. You're covered.

Culture & Entertainment

Live Music Capital of the World. 250+ live music venues. Film festivals. Theater. Museums. UT sports. F1 racing. Farmers markets. You will never be bored in Austin.

Outdoor Lifestyle

Lady Bird Lake (10-mile trail), Barton Springs (68°F year-round), 300+ parks, 50+ golf courses, Hill Country wine trails, state parks everywhere. Active living is the Austin default.

Austin-Bergstrom Airport

Direct flights to 70+ cities. International flights to London, Frankfurt, Cancún, and more. 15 minutes from downtown. Easy to visit grandkids or take trips.

Best Neighborhoods for Retirees

Georgetown (full guide)

30 min north. Sun City (55+ community, 9,600 homes, 3 golf courses, pools, 100+ clubs). Historic downtown square. Charming. Affordable. The #1 retirement destination in the Austin metro.

Lakeway

Lake Travis. Lake living, golf courses (Flintrock Falls, Lakeway Resort), hill country views. Quieter, upscale. Median home: $550K-800K. The luxury retirement option.

Bee Cave / Dripping Springs

Hill Country west. Upscale suburban with Hill Country character. Wineries, distilleries, natural beauty. Galleria shopping. Excellent restaurants. Growing fast. Median home: $500K-700K.

Cedar Park / Leander

Northwest. The affordable option. Growing rapidly. H-E-B Plus, restaurants, trails. 20 min to downtown. Median home: $400K-500K. Best value in the metro for retirees on a budget.

Bastrop

30 min southeast. Small-town Texas charm on the Colorado River. Artsy downtown, state park, affordable. Median home: $300K-400K. The most affordable option with real character.

South Austin

In the city. Zilker Park, Barton Springs, South Congress culture. Stay in the action. Median home: $500K-700K. For retirees who want urban energy, not suburban quiet.

Cost of Living

Housing

Median home price: ~$450K (Austin proper), $350K-400K (suburbs). Rent: $1,400-2,000/mo for a nice 2BR. Austin is more expensive than most of Texas but cheaper than California, Colorado, or the Northeast.

Property Taxes

The tradeoff for no income tax. Travis County: ~1.8-2.0%. Williamson County: ~2.0-2.2%. Over-65 exemption: school district taxes freeze at the rate when you turned 65. Homestead exemption saves ~$1,000-2,000/yr.

Groceries & Utilities

H-E-B keeps grocery costs reasonable (below national average). Electric: $150-250/mo (summer AC). Water: $50-80/mo. Internet: $50-80/mo. Overall: 3-5% above national average, 30-40% below California.

Austin vs Other Retirement Destinations

Austin vs Florida

Both: no income tax. Austin advantages: culture, music, less humidity, no hurricanes, Hill Country beauty. Florida advantages: beaches, lower property tax, cheaper housing. Austin wins on lifestyle; Florida wins on cost.

Austin vs Arizona

Austin advantages: greener, more water, more culture, better food scene, more diverse economy. Arizona advantages: drier heat, cheaper housing, stunning desert scenery. Austin wins for people who want an active urban life.

Austin vs Carolinas

Austin advantages: no income tax (NC has 4.5%), more tech/innovation culture, drier climate. Carolina advantages: beaches + mountains, lower cost, milder summers. Austin wins on taxes and culture; Carolinas win on geography.

55+ Communities

Sun City Georgetown

9,600 homes. 3 golf courses. 50,000 sq ft fitness center. 100+ clubs. Pools, tennis, pickleball, woodworking, pottery. The gold standard. Homes: $250K-600K. Del Webb built.

Kissing Tree (San Marcos)

30 min south. Brookfield Residential. Homes from $300K. Restaurant, fitness center, trails, pool. Growing community. Hill Country setting near outlet malls.

Trilogy at Lago Vista

Lake Travis area. Shea Homes. Resort-style with lake access, golf, spa. Homes from $400K. The luxury active-adult option northwest of Austin.

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