• Florida excels with its tax-friendly surroundings for retirees in comparison with Texas, providing financial savings on social safety and retirement revenue.
  • Texas, nonetheless, shines with a decrease value of dwelling in comparison with Florida, making it a more cost effective possibility for retirees.
  • Each states supply beautiful seashore cities to retire in, however it in the end relies on what elements of retirement are most necessary to you.

Simply as there are reasons to retire in Florida over Arizona, so, too, there are causes to retire in Florida over Texas and vice versa. There are numerous excellent places to retire in Florida simply as there are plenty of beautiful small towns to retire in Texas.

Each Florida and Texas are two of the warmest and southernmost coastal states widespread for retiring, however which state is the perfect? The reply is sophisticated as a result of it relies on what you need most out of retirement.

Why Florida Is A Nice State To Retire

Florida has very tax-friendly charges for retirees and has very good seashores

Maybe surprisingly, neither Florida nor Texas are ranked within the top five list of best states to retire by Bankrate and even the top ten best states to retire by The Motley Idiot (Bankrate ranked Iowa as the best state to retire).

As an alternative, Bankrate listed Florida because the eighth finest state to retire (whereas Texas achieved a poor rating of solely forty fourth, or sixth worst).

A senior couple holding hands while sitting by a pool in Miami, Florida, FL, USA

A senior couple holding palms whereas sitting by a pool in Miami, Florida, FL, USA 

Florida is famously widespread for retiring. Its heat climate and beautiful seashores have drawn massive crowds of retirees for a few years now. However Florida does have its issues, together with a rising value of residence insurance coverage and a rising value of dwelling and these are driving some folks out of the state.

Florida wins with regards to taxes. Good Asset categorizes Florida as one of the seven states that are “Very Tax Friendly” (the others being Alaska, Georgia, Mississippi, Nevada, South Dakota, and Wyoming).

All these states take pleasure in no state revenue tax, no tax on retirement revenue (or a major tax deduction on retirement revenue). Additionally they have favorable property, property, inheritance, and gross sales tax charges.

Pleasant State Taxes In Florida:

  • No Taxes On Social Safety Advantages
  • No Taxes On Retirement Earnings
  • No Inheritance Tax or Property Tax
  • Gross sales Tax Fee: 6%

Texas can be categorized favorably by Good Asset for its lenient taxes (however as “Tax Pleasant” not “Very Tax Pleasant”). To benefit from these taxes, retirees want to ascertain residency in Florida and present they spend greater than half the 12 months there.


7 Affordable States In The US To Retire

Take a look at essentially the most reasonably priced U.S. states for retirees, the place they’ll fulfill desires and maximize funds for a worry-free life.

Why Texas Is A Nice State To Retire

Texas has favorable taxes and an ideal local weather (with seashore cities)

San Antonio, Texas, USA downtown city skyline.

San Antonio, Texas, USA downtown metropolis skyline.

Texas is a tax-friendly state and is listed because the 10th most tax-friendly by Kiplinger. Nonetheless, Texas does poorly with regards to property taxes with a median tax invoice of $3,520.

Nonetheless, a property tax reduction bundle got here into impact in 2023, so this can be a lot diminished sooner or later.

Pleasant State Taxes In Texas:

  • No Taxes On Social Safety Advantages
  • No Taxes On Retirement Earnings
  • No Inheritance Tax or Property Tax
  • Gross sales Tax Fee: 6.25% (8.198% common mixed charge)

However with regards to the monetary facet of selecting the place to retire, it isn’t simply in regards to the taxes (how a lot the state takes), but in addition the price of dwelling (how a lot that cash buys). In the case of the price of dwelling, Texas has the benefit.

Texas is famous for being an ideal place for retirees, and it offers stunning beach towns to retire in.


Permanent Vacation: These Are The Best Small Towns You Can Retire To In The U.S.

Searching for the proper small city to retire to in the USA? Listed here are everlasting trip cities to take pleasure in your golden years.

Florida vs Texas & The Comparative Value Of Residing

Texas is the cheaper state to dwell with a price of dwelling index of 92.7 in comparison with Florida’s 100.7

Senior couple drinking champagne on sailboat in Florida during a summer vacation

Senior couple consuming champagne on sailboat in Florida throughout a summer season trip

In the case of the price of dwelling, it is Texas that wins out. In line with the Missouri Financial Analysis and Data Heart, Texas has a state ranking of 19th (out of 50 states) in comparison with Florida’s twenty ninth rating.

Texas Index



General Index




Well being




The nationwide common value of dwelling is at all times 100; above that determine it’s costlier than the common value in the USA and under that’s cheaper.

Texas has an index of 92.7 (making it 7.3% cheaper) whereas Florida is 100.7 (or 0.7% costlier than the US at massive).

Florida Index



General Index




Well being




For reference, Oklahoma was the most affordable state with an index of 86.2 and Hawaii was the most costly with an index of 180.3, significantly increased than every other state.

Lastly, gasoline is on average cheaper in Texas based on AAA Gasoline Costs. It prices $2.94 per gallon in Texas in contrast with $3.46 per gallon in Florida.

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