Retire in Austin

Affordability

Find out how much it costs to live in Austin.

Cost of Living

The day Texas is rated anything less than "Friendly" by Kiplinger's will certainly be an interesting one. It is no surprise it continues to be an attractive destination for retirees with no social security tax, no income tax, and no pension tax. Austin is also one of few cities to boast a low cost of living.

Kiplinger Rating:

Tax Friendly

State Income Tax:

None

Social Security Tax?

None

County + State Sales Tax

8.3%

Property Tax Rate *

2%

Property Tax Ranking (County Property Tax rank out of 2,773, higher rank=lower rate) *

86

* 2008-2010

Cost of Living Index (100=average):

95.4

Housing + transportation costs as % of income:

47%

Tax Details

State Sales Tax Breaks for Seniors:

None

Pensions Taxed?

None

Tax burden: % income going to state and local taxes:

7.5%

Inheritance and estate taxes (per Kiplinger):

None

Taxing of other retirement income (per Kiplinger):

None

Property Tax Break for Seniors (per Kiplinger):

If you are age 65 or older, or disabled, you qualify for the homestead exemption as soon as you turn 65; you need not own your home on January 1, but the home must be your principal residence. For homeowners who are 65 and older or who are disabled, $10,000 (in addition to the regular $15,000 homestead exemption) of the property's assessed value is exempt from school taxes. Other taxing units may offer an exemption of at least $3,000 to homeowners who are age 65 or older or who are disabled (at the taxing unit’s discretion or as a result of a voter petition). Once a homeowner turns 65 or is disabled, the owner benefits from a tax ceiling for that home for school taxes. If the homeowner improves the home (other than normal repairs or maintenance), the tax ceiling is adjusted for the new additions. School-district taxes are frozen at the level imposed on the residence the year the owner turned 65 or became disabled. Counties, cities, towns and junior-college districts can establish a tax freeze on homesteads of people who are 65 or older or who are disabled. A homeowner who is 65 or older or disabled may qualify to defer their property taxes until he or she no longer owns or occupies the home as a residence. Property taxes continue to accrue during the deferral period and are assessed interest at the rate of 8% a year. Once the deferral ends, the taxes and accrued interest must be paid.

 

For more detailed tax information from Kiplinger, visit www.kiplinger.com/tool/retirement/T055-S001-state-by-state-guide-to-taxes-on-retirees/

Real Estate

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Real Estate overview not available for Austin

To learn more about real estate in Austin book a visit and we'll help you find the right place to live.

Work Potential

With an economy largely buoyed by the technology industry, it'll be no surprise to learn that Austin's economy has been roaring in recent years, with nearly 12% employment growth and an impressive 26% income growth in the last 3 years. Given it is the state capital, there are plenty of jobs with the City of Austin or the Federal Government, along with large technology companies such as Dell and IBM.

  • Area
  • National Average

5 Largest Companies

  • Austin Independent School District
  • City of Austin
  • Dell
  • Federal Government
  • IBM

GDP Growth Last 3 Years

18.5%

Income Growth Last 3 Years

26.1%

Employment Growth Last 3 Years

12.2%

Top Industries Hiring

  • Professional, scientific, and technical services
  • Accommodation and food services
  • Healthcare and social assistance
  • Administrative and waste management services
  • Retail trade

Breakdown Fulltime vs Part Time over 65 (%)

  • Part Time over 65
  • Full Time Over 65

Occupation Breakdown (%)

  • Management, Business, Science & Arts (MBSA)
  • Natural Resources, Contruction & Maintenance (NRCM)
  • Production, Transportation, Materials & Moving (PTMM)
  • Sales & Office (S&O)
  • Service

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