Austin vs Waco for Retirees (2026)
Scroll down for retirement income tax breakdown, healthcare estimates, and FAQ.
Full retirement cost breakdown
| Metric | Austin Texas | Waco Texas |
|---|---|---|
| 1BR rent / month | $1,800 | $1,000Better |
| Median home price | $480K | $210KBetter |
| State income tax | NoneBetter | None |
| Sales tax (combined) | 8.3%Better | 8.3% |
| Monthly utilities | $170Better | $172 |
| Groceries index (US = 100) | 98 | 92Better |
| Est. healthcare / month | $610 | $415Better |
| Walk score (0–100) | 42 / 100Better | 22 / 100 |
| Overall COL index (100 = US avg) | 122 | 83Better |
Frequently asked questions
Which city is better for retirement — Austin 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 $480K in Austin vs $210K in Waco. Waco is approximately 32% cheaper overall. The best choice still depends on climate, healthcare access, and proximity to family.
Is retirement income taxed in Austin or Waco?
Neither Austin nor Waco has a state income tax, which is excellent for retirees relying on Social Security, pensions, or 401(k) withdrawals. Your retirement income is only subject to federal taxes.
What is the estimated monthly healthcare cost in Austin 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 $610 in Austin and $415 in Waco. That's a difference of ~$195/month, or ~$2,340/year. Actual costs vary based on your Medicare plan, supplements, and health needs.
Can I afford to retire in Austin on a $50,000 annual income?
On a $50,000/year ($4,167/month) retirement income in Austin, rent alone would consume approximately 43% of your budget (1BR rent ~$1,800/mo) and healthcare another ~15%. That leaves roughly 42% (~$1,750/mo) for groceries, transportation, and other expenses. This is tight — a studio apartment or lower-cost neighborhood would help.
Which city is more walkable for retirees?
Austin 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. Austin offers more independence without a car, which also reduces transportation costs.
$50K/year in Austin has the same purchasing power as $34K/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