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Austin, Texas Retirement Guide
Retirement Score
Austin, Texas at a Glance
- Median Home Price
- $593,000
- State Income Tax
- No state income tax; Social Security and pension income fully exempt.
- Avg January Low
- 39°F
- Cost of Living Index
- 113.8 (US avg = 100)
- RetireCityIQ Score
- 47 / 100
Overview
"Austin, Texas is a Texas Hill Country retirement destination known for its live-music scene, mild climate, and University of Texas medical resources. Median home prices run around $545,000 and cost of living is about 4% above the national average. Texas levies no state income tax. Dell Seton Medical Center anchors academic-quality care. Austin's tax-friendly status and cultural amenities offset a higher housing cost than most Texas peers."
Austin sits in central Texas in the rolling Hill Country at the edge of the Edwards Plateau. The city is the state capital, home to the University of Texas, and over the past 15 years has become one of the fastest-growing US metros. The senior population is around 12% age 65+ — lower than most retirement-targeted cities — but the cultural and healthcare infrastructure make it a strong retirement choice for retirees who want urban energy.
Texas's retirement tax picture is mixed. There's no state income tax, no estate tax, and Social Security is fully exempt — but Texas property tax rates are among the highest in the country (often 1.8–2.5% of assessed value), and there's no homestead exemption as generous as Florida's. On a $500,000 home, expect $9,000–$13,000/year in property taxes, which substantially offsets the no-income-tax advantage for retirees in mid-priced homes.
Healthcare is exceptional. Dell Seton Medical Center is the academic teaching hospital affiliated with the University of Texas at Austin's Dell Medical School. Ascension Seton, St. David's HealthCare, and Baylor Scott & White round out a strong network. Specialist availability is excellent. Medicare Advantage plan options are deep.
Austin is best for retirees who want urban Texas living, are willing to absorb high property taxes in exchange for no income tax and a vibrant cultural scene, and value the medical resources of a major teaching hospital. Summer heat is intense (July high ~96°F).
Cost of Living
Affordability Metrics
Austin's cost of living is 13.799999999999997% above the national average. For a detailed breakdown of expenses, see our cost of living methodology.
Housing
Real Estate & Housing
10-Year Housing Stress Test (Estimate)
Estimate monthly homeowner carrying cost in Austin using median home price and adjustable assumptions. Stress case applies +10% property tax, +20% insurance, +10% maintenance.
Estimated monthly carrying cost
$1,285
Stress-case monthly carrying cost
$1,443
Median home price used: $593,000
Median rent reference: $1,581 / month
Estimate includes property tax, insurance, maintenance reserve, and HOA. It excludes mortgage, utilities, and one-time transaction costs.
Budget validation
Calculate if your savings last in this city
Use RetireFree to test whether your portfolio can support retirement in Austin, Texas after local housing costs, taxes, healthcare, inflation, and withdrawal timing.
Open the RetireFree Calculator →Healthcare
Access & Quality
Quality of care and specialist availability are critical for a successful retirement. Austin scores 18.4 out of 100 for healthcare access.
Care planning link
Find local assisted living in Austin
If your city research includes aging parents, future care needs, or a move closer to family, compare local care options alongside housing and healthcare access.
Assisted living in Austin →Taxes
State Tax Climate
Texas has a tax environment that is highly favorable for retirees.Read more in our detailed Texas tax guide.
Climate
Weather & Environment
With 228 sunny days a year and an average January low of 39°F, Austin offers a traditional winter climate.
Safety & Walkability
Community Safety
Walkability
Demographics
Population Profile
Diversity Breakdown
Frequently asked questions about retiring in Austin
Is Austin, Texas a good place to retire in 2026?▾
Austin, Texas is a Texas Hill Country retirement destination known for its live-music scene, mild climate, and University of Texas medical resources. Median home prices run around $545,000 and cost of living is about 4% above the national average. Texas levies no state income tax. Dell Seton Medical Center anchors academic-quality care. Austin's tax-friendly status and cultural amenities offset a higher housing cost than most Texas peers.
What is the cost of living in Austin, Texas for retirees?▾
The cost-of-living index is 114, roughly 14% above the national average of 100. Median home price is around $593,000.
Does Texas tax Social Security or retirement income?▾
For Texas residents: No state income tax; Social Security and pension income fully exempt.
What is the climate like in Austin, Texas?▾
Austin, Texas has January average low around 39°F, July average high around 96°F. Climate normals are based on 30-year averages from NOAA's National Centers for Environmental Information.
What is healthcare access like in Austin, Texas?▾
Austin scores 18/100 on the RetireCityIQ healthcare access index — a limited score. The index combines CMS hospital quality ratings, Medicare Advantage plan availability, and hospitals per 100,000 residents (KFF + CMS data).
How much does it cost to retire in Austin, Texas?▾
For a retired couple in a paid-off home, total monthly costs in Austin run roughly $3,983 based on the cost-of-living index of 114. This includes property taxes, utilities, healthcare premiums, groceries, transportation, and discretionary spending. Renters add roughly $1,200–$1,800/month for a 2-bedroom.
Local Professionals
Financial Advisors
SAGE ADVISORY SERVICES LTD CO
DIMENSIONAL FUND ADVISORS LP
TERRY MCDANIEL & COMPANY
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