The Average Retirement Income In Texas Compared To The United States Average

Living in Texas is different from being a resident of any other state in America. The history, culture, and political climate are unique to the Lone Star State alone, as is the experience of retiring there. Those who clock out of the workforce and choose to call Texas home might find that there are some pros and cons, but the average retirement income tends to be squarely in the middle of retiree incomes.

WiseVoter found that Texas ranked No. 22 out of 50 when it comes to the average retirement income per state. The data showed that the typical income per retired Texan household was $27,471, which is pretty close to the national average of $27,617. This amount is a far cry from what anyone would need to earn to be considered upper class in Texas – which is a minimum of $152,584 worth of annual income in a state where the median household income is just $76,292, according to GOBankingRates.

No matter where you decide to retire, you'll want to closely keep track of how much you are earning each month, as well as how much your monthly expenses are. The good news is that living in Texas has a lot of financial benefits, with SmartAsset noting that Texas is considered tax friendly to retirees. The state does not collect local income tax, which means that retirees are not taxed on Social Security benefits, or most other income types during retirement –- such as pensions and withdrawals from retirement accounts.

Other considerations for retirees involve where to, and where not to buy a home in Texas, including considering some small towns where you can live on Social Security alone. One downside is that Texas has some of the highest property tax rates in America. According to Home Tax Solutions, most residents can expect property taxes in 2025 between 1.6% and 2.5%.

Texas had one of the best economies in the nation in 2024 – not to mention that the value of $100 in Texas is more than you might expect. However, when it comes to retirement income, there is a fairly wide range state-to-state, with the lowest amount, $20,542, going to retirees in Indiana. The two highest regions being Alaska at $36,023, and the District of Columbia at $43,080, according to SmartAsset.

Based on the numbers, states along the West Coast and in the Northeast region of America tend to have higher retirement incomes, on average, compared to states in the South and Midwest. The average income a retired person in the United States receives varies based on factors like how much they earned in wages during their career, their annual cost of living expenses, the rate at which they are taxed, and how much they can expect to earn from pension plans and Social Security benefits.