The facts about retiring in Texas are important to any retiree. Whether they are like the majority of retirees and are living on a fixed income, or luckily belong to the big spenders, the facts on Texas will figure in the reckoning. The Lone Star State offers many benefits to the active adult, but choosing the right place to live and paying just your fair share of taxes are some of the facts the retiree needs to be aware of.
Here are four facts about retiring in Texas.
Low Taxes
Texas runs a low tax regime for the individual,
according to MarketWatch. There is a zero rate on all personal income both on earnings and on retirement plans. An added bonus for retirees in Texas is that the state does not tax Social Security pension payments so the active adult keeps all their income from all sources. This is a vital fact for those on that fixed income plan. Property taxes are not set by the state, but locally and vary across the land. The state offers tax exemptions to those aged 65 or older and there is a property tax waiver available until the home is sold.
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Cost of Living
With its low tax regime, the cost of living for the retiree in Texas can be very affordable,
according to Sperling's Best Places. Across the board, on items such as groceries, health care, housing, and utilities, the state does very well compared with the national average. In fact, in most parts of the Lone Star State, the overall cost of living is nearly 10 percent less than other parts of the country. The state has a rather high sales tax though, reaching over 8 percent in most areas, and this can affect the cost of some day-to-day items for the active adult.
Climate
In such a large state, there are bound to be varieties in the climate across the land. The retiree will need to be aware of extremes in the climate when deciding on a place to live. In addition to its variety of areas such as mountain, plain and coastal regions the state is also situated where several climate zones meet.
This can lead to unpredictable weather patterns and severe storms. While living in a warm climate may cut down on heating bills, the summer temperatures in parts of the state will mean the cooling is on 24/7. The coastal regions tend to get the best of a temperate climate, but the north of the state gets very hot summers and very cold winters. For the retiree looking to put away the snow shovel, Texas may be the place, but not everywhere.
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Crime
Texas consistently scores well against other states on crime rates. As in the other states in the U.S., crime rates vary across the region,
the Midland Reporter-Telegram noted. For the retiree, it is important to know which areas have the lowest crime as being a vulnerable community, the elderly are often victims of property and theft. The large urban areas of the state tend to have less crime than the smaller rural areas though this too can vary from region to region.