Waco vs Memphis for Retirees (2026)
Scroll down for retirement income tax breakdown, healthcare estimates, and FAQ.
Your move simulator
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Estimated annual swing
+$1,296/yr
Favoring Waco for this income & household (illustrative).
With an extra $108/mo in Waco, you could max a Roth IRA contribution faster and still grow your savings buffer.
Complete the Picture
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High-yield savings
Grow your move fund while rates are high
Even $108/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 Waco resets your insurance profile. Bundling home + auto often saves 15–25%.
Supplemental health
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Health coverage varies by state. Review Medigap plans available in your new zip before moving.
Full retirement cost breakdown
| Metric | Waco Texas | Memphis Tennessee | Your impact |
|---|---|---|---|
| 1BR rent / month | $1,000Better | $1,100 | $1,200/yr saves in Waco |
| Median home price | $210K | $200KBetter | — |
| State income tax | NoneBetter | None | — |
| Sales tax (combined) | 8.3%Better | 9.8% | — |
| Monthly utilities | $172 | $170Better | — |
| Groceries index (US = 100) | 92Better | 94 | — |
| Est. healthcare / month | $415Better | $415 | — |
| Walk score (0–100) | 22 / 100 | 31 / 100Better | — |
| Overall COL index (100 = US avg) | 83Better | 83 | — |
Complete the Picture
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Mortgages
See what you can afford in Memphis
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 Memphis 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 Memphis?
Based on home prices, taxes on retirement income, walkability, and overall cost of living, Memphis scores better for retirees. Median home prices are $210K in Waco vs $200K in Memphis. The best choice still depends on climate, healthcare access, and proximity to family.
Is retirement income taxed in Waco or Memphis?
Neither Waco nor Memphis 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 Memphis?
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 $415 in Memphis. That's a difference of ~$0/month, or ~$0/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?
Memphis has a higher walk score (31 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. Memphis offers more independence without a car, which also reduces transportation costs.
$50K/year in Waco has the same purchasing power as $50K/year in Memphis
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