Albuquerque vs Waco for Retirees (2026)
Scroll down for retirement income tax breakdown, healthcare estimates, and FAQ.
Full retirement cost breakdown
| Metric | Albuquerque New Mexico | Waco Texas |
|---|---|---|
| 1BR rent / month | $1,100 | $1,000Better |
| Median home price | $280K | $210KBetter |
| State income tax | 4.9% | NoneBetter |
| Sales tax (combined) | 7.9%Better | 8.3% |
| Monthly utilities | $165Better | $172 |
| Groceries index (US = 100) | 95 | 92Better |
| Est. healthcare / month | $445 | $415Better |
| Walk score (0–100) | 42 / 100Better | 22 / 100 |
| Overall COL index (100 = US avg) | 89 | 83Better |
Frequently asked questions
Which city is better for retirement — Albuquerque or Waco?
Based on home prices, taxes on retirement income, walkability, and overall cost of living, Waco scores better for retirees. Median home prices are $280K in Albuquerque vs $210K in Waco. Waco is approximately 7% cheaper overall. The best choice still depends on climate, healthcare access, and proximity to family.
Is retirement income taxed in Albuquerque or Waco?
Texas has no state income tax, meaning Social Security, pension, and retirement account withdrawals are not subject to state tax. New Mexico has a 4.9% state income tax rate. For retirees, this difference can save thousands annually.
What is the estimated monthly healthcare cost in Albuquerque vs Waco?
Based on national average retiree healthcare spending (~$500/month) scaled by each city's cost-of-living index, estimated monthly healthcare costs are approximately $445 in Albuquerque and $415 in Waco. That's a difference of ~$30/month, or ~$360/year. Actual costs vary based on your Medicare plan, supplements, and health needs.
Can I afford to retire in Albuquerque on a $50,000 annual income?
On a $50,000/year ($4,167/month) retirement income in Albuquerque, rent alone would consume approximately 26% of your budget (1BR rent ~$1,100/mo) and healthcare another ~11%. That leaves roughly 63% (~$2,625/mo) for groceries, transportation, and other expenses. This is generally considered manageable.
Which city is more walkable for retirees?
Albuquerque has a higher walk score (42 vs 22 out of 100). Walkability is increasingly important for retirees who want to reduce car dependence — a score above 70 means most daily errands can be done on foot. Albuquerque offers more independence without a car, which also reduces transportation costs.
$50K/year in Albuquerque has the same purchasing power as $47K/year in Waco
Healthcare estimates based on national avg retiree spending (~$500/mo) scaled by COL index · State income tax rates from Tax Foundation · Data: Zillow, BLS, Numbeo · Q1 2026