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Texas 55+ Retirement Budget Guide — 2026

Full annual cost of retirement in Austin-corridor 55+ communities — housing, healthcare, food, transportation, taxes, and what Texas-specific costs surprise buyers from other states

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What a Complete Texas Retirement Budget Looks Like

Most 55+ community marketing shows HOA fees and home prices. A real retirement budget includes everything: housing costs, healthcare premiums and out-of-pocket, food, transportation, entertainment, and the Texas-specific items that do not appear in brochures. This guide builds a complete picture for three profiles: modest-budget couple, comfortable-budget couple, and active-lifestyle couple.

Housing Costs — Sun City Texas, $450K Home, 65+ Couple

Housing Cost ComponentMonthlyAnnual
Mortgage (if any — assumes 50% down, 30yr at 6.5%)~$1,422~$17,064
HOA$100$1,200
Property tax (65+ primary, all exemptions)~$375~$4,500
Homeowners insurance~$175~$2,100
Lawn care~$125~$1,500
Maintenance reserve (1% of value/yr)~$375~$4,500
Total housing (with mortgage)~$2,572/mo~$30,864/yr

Cash buyers (no mortgage) reduce the monthly housing cost to approximately $1,150/month. Many buyers from NJ, NY, and CA arrive as cash buyers after equity events, which dramatically improves the budget picture.

Healthcare Costs

Healthcare ComponentMonthlyAnnual
Medicare Part B premium (2026, standard)~$185/person~$2,220/person
Medigap Plan G premium (est., 65–70 age range)~$150–$200/person~$1,800–$2,400/person
Part D prescription drug plan~$30–$80/person~$360–$960/person
Dental, vision, hearing (not covered by Medicare)~$100–$150/person~$1,200–$1,800/person
Out-of-pocket medical (copays, prescriptions)~$100–$300/month total~$1,200–$3,600/yr
Total healthcare — couple (est.)~$900–$1,400/mo~$10,800–$16,800/yr
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Three Full Budget Profiles

Budget CategoryModest ($65K/yr income)Comfortable ($100K/yr)Active ($150K/yr)
Housing (cash purchase)$13,800$13,800$18,000 (larger home)
Healthcare$12,000$14,000$16,000
Food and dining$12,000$18,000$24,000
Transportation$8,000$10,000$14,000
Golf (Sun City)$0$2,500 (single)$4,200 (couple)
Entertainment / travel$6,000$12,000$24,000
Personal / miscellaneous$6,000$8,000$12,000
Total annual budget~$57,800~$78,300~$112,200

Texas income tax: $0 on all of it. The after-tax income available for spending is the full gross retirement income — no state-level withholding. For a couple with $100,000 in retirement income in New Jersey, approximately $6,000–$9,000 of that would go to state income taxes. In Texas, $100,000 is $100,000.

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