Austin & the Texas Hill Country Corridor
Retiring to Austin — The Honest Review
"Texas has no income tax" is the whole pitch you'll hear, and it's true — but it's half the story. Property taxes in the Austin Hill Country corridor run among the highest in the country, and the honest picture only comes into focus once you put both numbers on the same page.
Have questions about what you're reading? A specialist can walk you through real costs, honest comparisons, and what's actually available right now — free, no obligation.
Talk to a Specialist →The Zero-Income-Tax Case
- Zero state income tax, full stop. For a retired couple with $120,000 in annual retirement income moving from New Jersey, Illinois, or California, that alone can mean $5,000–$12,000 in immediate annual savings.
- Sun City Texas in Georgetown is a genuine flagship — roughly 9,500 homes, HOA around $100/month, prices from $300K–$700K, and three golf courses (Legacy Hills, White Wing, Cowan Creek).
- The 2025–2026 senior school tax freeze is a real, permanent benefit: Texas 65+ homeowners get $200,000 in combined school tax exemptions plus a freeze that locks school taxes at the rate in place when they turn 65 — they never go up again.
- Kissing Tree in San Marcos sits roughly 30 miles from Austin and 45 miles from San Antonio, genuinely splitting access to two metro areas from one address.
- Hill Country geography delivers real lake access — Trilogy at Rough Hollow and Amante at Rough Hollow both sit on Lake Travis in Lakeway.
Property Tax (Williamson Co., pre-exemption)1.8%–2.1%
Est. 65+ Tax on $500K Home, All Exemptions~$5,400–$7,200/yr
🎯
Free · No Obligation · Vetted Agents
Ready to move from research to real conversations about this community?
We connect buyers with agents who know this market from the inside — real cost math, honest comparisons, and what's actually happening right now. Every agent is personally vetted by the Nova55Living founder. No scripts, no pressure.
The Bill Zero Income Tax Doesn't Mention
- Property taxes are genuinely high — effective rates of 1.8%–2.5% are common in this corridor before exemptions, meaning a $500,000 home can carry a far larger tax bill here than in a state with income tax but modest property tax.
- Golf at Sun City Texas is not included in the base HOA despite the marketing emphasis on three courses — optional golf plans add $1,500–$3,500/year, a cost that's easy to miss when comparing HOA numbers across communities.
- Many newer developments around Lakeway and Rough Hollow sit inside Municipal Utility Districts (MUDs), which add another $1,500–$3,500/year on top of regular property taxes — a cost buyers frequently miss in their budget.
- Sun City Texas is now 25+ years old with an enormous resale inventory; homes from the late 1990s and early 2000s are reaching the age where HVAC, roofs, and kitchens need real budgeting, something buyers from newer-construction markets can underestimate.
- Texas summer heat is a well-known regional reality — buyers looking for a climate escape should not expect Austin to provide one.
Who the Trade Actually Favors
The trade favors you if: you have substantial retirement account or pension income and are relocating from a high-income-tax state, you're comfortable trading that savings for a real property tax bill, and you value the Hill Country lifestyle and Lake Travis access enough to budget for MUD and golf add-ons up front.
It doesn't if: you're on a fixed, modest income and need the lowest possible predictable carrying cost — a market with lower property taxes, even one with some income tax, may pencil out better once MUD fees are added in. Buyers wanting a genuine climate break from heat should also look elsewhere.
Two tax lines, one truth: no income tax is real money, but it is not free money — it is traded for one of the higher property tax bills in the country. Run both sides of that ledger before you decide the Texas math works for you.
Austin Market Hub →Questions About Austin?
We can run your specific Texas tax scenario before you book a flight to Georgetown or San Marcos.
Free Consultation · Vetted Agents · No Obligation
Ready to take the next step on
the right 55+ community?
Connect with a specialist who knows this market from the inside — real cost math, honest community comparisons, and what's actually happening right now. Every agent is personally vetted by the Nova55Living founder.
Connect with a Specialist →Personally vetted by the Nova55Living founderNo scripts. No pressure.Always free