Living in Texas offers a unique experience compared to residing in any other state in America. The state’s distinctive history, culture, and political environment make the experience of retiring there quite singular. Those who retire in Texas may encounter both advantages and disadvantages, but the average retirement income in the state typically falls in the middle of the range for retiree incomes.
WiseVoter reports that Texas is ranked 22nd out of 50 states regarding average retirement income. The data indicates that the average income for retired households in Texas is $27,471, which is quite close to the national average of $27,617. This figure is significantly lower than the income required to be considered upper class in Texas, which is a minimum of $152,584 annually, whereas the median household income in the state is just $76,292, according to GOBankingRates.
Managing your retirement finances while living in Texas
Wherever you choose to retire, it is crucial to keep a close watch on your monthly earnings and expenses. Fortunately, living in Texas offers several financial advantages. According to SmartAsset, Texas is considered tax-friendly for retirees. The state does not levy a local income tax, meaning retirees are not taxed on Social Security benefits or most other types of retirement income, such as pensions and withdrawals from retirement accounts.
Retirees should also contemplate where to buy a home in Texas, considering some small towns where one might live solely on Social Security. However, a drawback is that Texas has some of the highest property tax rates in the U.S. According to Home Tax Solutions, property taxes in Texas are expected to range from 1.6% to 2.5% in 2025.
The average retirement income in other states across America
Texas had one of the strongest economies in the nation in 2024, and the value of $100 in Texas is higher than one might anticipate. However, retirement incomes vary widely between states. The lowest average retirement income is found in Indiana at $20,542, while the highest are in Alaska at $36,023 and the District of Columbia at $43,080, according to SmartAsset.
Generally, states along the West Coast and in the Northeast tend to have higher average retirement incomes compared to states in the South and Midwest. The average income for a retired person in the U.S. varies based on factors such as their career earnings, annual living expenses, tax rates, and expected income from pension plans and Social Security benefits.
“`
