El Paso vs Montgomery for Retirees (2026)
Scroll down for retirement income tax breakdown, healthcare estimates, and FAQ.
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Estimated annual swing
+$2,857/yr
Favoring El Paso for this income & household (illustrative).
With the extra $238/mo, you could pay down a $15,000 card balance in ~64 months and still keep ~$29/mo for dining out.
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High-yield savings
Park ~$2,857/yr savings at 4–5%+ APY
Even $238/mo extra earns meaningfully at 4–5% APY vs near-zero in checking.
Home + auto bundle
New state — compare rates before you sign
Moving to El Paso resets your insurance profile. Bundling home + auto often saves 15–25%.
Supplemental health
El Paso's lower taxes leave ~$2,904/yr more for healthcare
Health coverage varies by state. Review Medigap plans available in your new zip before moving.
Full retirement cost breakdown
| Metric | El Paso Texas | Montgomery Alabama | Your impact |
|---|---|---|---|
| 1BR rent / month | $1,050Better | $1,050 | — |
| Median home price | $215K | $195KBetter | — |
| State income tax | NoneBetter | 5% | $3,750/yr saves in El |
| Sales tax (combined) | 8.3%Better | 9.2% | — |
| Monthly utilities | $175 | $170Better | — |
| Groceries index (US = 100) | 91Better | 93 | — |
| Est. healthcare / month | $400Better | $405 | — |
| Walk score (0–100) | 28 / 100Better | 24 / 100 | — |
| Overall COL index (100 = US avg) | 80Better | 81 | — |
Your biggest money opportunities based on this comparison.
Retirement tax savings
El Paso saves ~$208/mo on a $50K retirement income
Keep more of your fixed income. Park the tax savings in a high-yield account to let it compound.
Complete the Picture
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Mortgages
See what you can afford in Montgomery
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Home & Auto Insurance
Bundle before you move — save 15–25%
New state means new rates. Lock in Montgomery homeowners + auto quotes before your move date.
Moving Rewards Card
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Frequently asked questions
Which city is better for retirement — El Paso or Montgomery?
Based on home prices, taxes on retirement income, walkability, and overall cost of living, El Paso scores better for retirees. Median home prices are $215K in El Paso vs $195K in Montgomery. El Paso is approximately 1% cheaper overall. The best choice still depends on climate, healthcare access, and proximity to family.
Is retirement income taxed in El Paso or Montgomery?
Texas has no state income tax, meaning Social Security, pension, and retirement account withdrawals are not subject to state tax. Alabama has a 5% state income tax rate. For retirees, this difference can save thousands annually.
What is the estimated monthly healthcare cost in El Paso vs Montgomery?
Based on national average retiree healthcare spending (~$500/month) scaled by each city's cost-of-living index, estimated monthly healthcare costs are approximately $400 in El Paso and $405 in Montgomery. That's a difference of ~$5/month, or ~$60/year. Actual costs vary based on your Medicare plan, supplements, and health needs.
Can I afford to retire in El Paso on a $50,000 annual income?
On a $50,000/year ($4,167/month) retirement income in El Paso, rent alone would consume approximately 25% of your budget (1BR rent ~$1,050/mo) and healthcare another ~10%. That leaves roughly 65% (~$2,708/mo) for groceries, transportation, and other expenses. This is generally considered manageable.
Which city is more walkable for retirees?
El Paso has a higher walk score (28 vs 24 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. El Paso offers more independence without a car, which also reduces transportation costs.
$50K/year in El Paso has the same purchasing power as $51K/year in Montgomery
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