Waco vs Lima for Retirees (2026)
Scroll down for retirement income tax breakdown, healthcare estimates, and FAQ.
Full retirement cost breakdown
| Metric | Waco Texas | Lima Lima Province |
|---|---|---|
| 1BR rent / month | $1,000 | $500Better |
| Median home price | $210K | — |
| State income tax | NoneBetter | None |
| Sales tax (combined) | 8.3%Better | 18% |
| Monthly utilities | $172 | $55Better |
| Groceries index (US = 100) | 92 | — |
| Est. healthcare / month | $415 | $200Better |
| Walk score (0–100) | 22 / 100 | 62 / 100Better |
| Overall COL index (100 = US avg) | 83 | 40Better |
Your biggest money opportunities based on this comparison.
Healthcare savings
Lima saves ~$215/mo on healthcare
Compare Medicare supplement and insurance plans to cover what Medicare doesn't pay.
More to invest
Lima stretches your retirement savings ~52% further
Lower COL means more of your nest egg stays invested. Compare brokerage and IRA accounts.
While you're comparing — don't leave money on the table.
Mortgages
See what you can afford in Lima
Compare rates from top lenders before your move — pre-approval is free and won't affect your score.
Home & Auto Insurance
Bundle before you move — save 15–25%
New state means new rates. Lock in Lima homeowners + auto quotes before your move date.
Moving Rewards Card
Turn closing costs & moving expenses into cash back
Average family spends $6,200 on a move. These cards pay 2–4% back + 0% intro APR on purchases.
Frequently asked questions
Which city is better for retirement — Waco or Lima?
Based on home prices, taxes on retirement income, walkability, and overall cost of living, Lima scores better for retirees. Lima is approximately 52% cheaper overall. The best choice still depends on climate, healthcare access, and proximity to family.
Is retirement income taxed in Waco or Lima?
Neither Waco nor Lima 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 Waco vs Lima?
Based on national average retiree healthcare spending (~$500/month) scaled by each city's cost-of-living index, estimated monthly healthcare costs are approximately $415 in Waco and $200 in Lima. That's a difference of ~$215/month, or ~$2,580/year. Actual costs vary based on your Medicare plan, supplements, and health needs.
Can I afford to retire in Waco on a $50,000 annual income?
On a $50,000/year ($4,167/month) retirement income in Waco, rent alone would consume approximately 24% of your budget (1BR rent ~$1,000/mo) and healthcare another ~10%. That leaves roughly 66% (~$2,750/mo) for groceries, transportation, and other expenses. This is generally considered manageable.
Which city is more walkable for retirees?
Lima has a higher walk score (62 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. Lima offers more independence without a car, which also reduces transportation costs.
$50K/year in Waco has the same purchasing power as $24K/year in Lima
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