Austin TX Real Estate - Hill Country Austin Lakeway Homes for Sale: June 2007

Texas is #2 Retirement Spot, passing AZ!

According to a new study from the North Carolina Center for Creative Retirement, Texas has passed Arizona and California in the number of retirees relocating.

This is interesting to me because, even though they say it's basically because of the lower cost of living and the beautiful weather, the cost of living thing is making me scratch my head.

In the state of Texas, we do not have a State Income Tax.  Instead, our taxing entities are a little higher, but you do get reductions with the homestead exemption, Over 65 Exemption (which retirees will take advantage of), and disability exemptions.  However, even though there will be exemptions, on average in the North Texas Area, residents will still be paying approximately 2.4% for annual taxes (in our 16 county radius, taxes range anywhere from about 2% up to 3.2% and the exemptions bring those down a little).  CA has a property tax rate at about 1.25%, and it remains the same each year you own the house.

Because they're retired, they do not get to take advantage of the no state income tax.  In my opinion, Texas isn't really the place I would go for retirement, it's a place to live while you're working so you get the lower cost of living, the no state income tax, and you can save your money in order to retire someplace else.

I guess I should point out another advantage of the Over 65 Exemption which is your taxes won't increase with the value of your home as much as a regular property, so the tax amount won't necessarily increase each year, but each time you move, you have to start over...

Even though cost of living in Florida is extremely high right now, they still  have 16.6% of the retirees.  Texas, which was previously in the #4 spot, received 6.8% which is up from 4.8% in 2000.  There's a big jump from the number one and the number 2 spot...

Comment balloon 6 commentsDonna Harris • June 04 2007 10:30AM
Texas is #2 Retirement Spot, passing AZ!
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According to a new study from the North Carolina Center for Creative Retirement Texas has passed Arizona and California in the number of retirees relocating. This is interesting to me because, even though they say it's basically because of the… more
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