Waco vs Montgomery for Retirees (2026)
Scroll down for retirement income tax breakdown, healthcare estimates, and FAQ.
Your move simulator
Tell us about your household — we calculate your real annual savings.
Estimated annual swing
+$3,145/yr
Favoring Waco for this income & household (illustrative).
With the extra $262/mo, you could pay down a $15,000 card balance in ~58 months and still keep ~$31/mo for dining out.
Complete the Picture
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High-yield savings
Park ~$3,145/yr savings at 4–5%+ APY
Even $262/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
Waco'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 | Waco Texas | Montgomery Alabama | Your impact |
|---|---|---|---|
| 1BR rent / month | $1,000Better | $1,050 | $600/yr saves in Waco |
| Median home price | $210K | $195KBetter | — |
| State income tax | NoneBetter | 5% | $3,750/yr saves in Waco |
| Sales tax (combined) | 8.3%Better | 9.2% | — |
| Monthly utilities | $172 | $170Better | — |
| Groceries index (US = 100) | 92Better | 93 | — |
| Est. healthcare / month | $415 | $405Better | $120/yr saves in Montgomery |
| Walk score (0–100) | 22 / 100 | 24 / 100Better | — |
| Overall COL index (100 = US avg) | 83 | 81Better | — |
Your biggest money opportunities based on this comparison.
Retirement tax savings
Waco 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
While you’re comparing — don’t leave money on the table.
Mortgages
See what you can afford in Montgomery
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 Montgomery 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 Montgomery?
Based on home prices, taxes on retirement income, walkability, and overall cost of living, Montgomery scores better for retirees. Median home prices are $210K in Waco vs $195K in Montgomery. Montgomery is approximately 2% cheaper overall. The best choice still depends on climate, healthcare access, and proximity to family.
Is retirement income taxed in Waco 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 Waco 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 $415 in Waco and $405 in Montgomery. That's a difference of ~$10/month, or ~$120/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?
Montgomery has a higher walk score (24 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. Montgomery offers more independence without a car, which also reduces transportation costs.
$50K/year in Waco has the same purchasing power as $49K/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