Working and Renting in Retirement
Texas is the Place for You
For retirees who plan to keep working—either part-time, remotely, or as small business owners—Texas offers a compelling mix of opportunity, affordability, and flexibility. It’s one of the few states with no personal income tax, which means that any wages, freelance income, or consulting fees you earn stay entirely in your pocket. That alone makes Texas attractive for older adults who want to remain active in the workforce without watching their earnings shrink.
However, while the lack of income tax is a major advantage, Texas offsets this with high property taxes, which can take a significant bite out of a homeowner’s budget.
That’s why retirees who plan to rent may find an especially favorable balance here. By renting instead of owning, you avoid those hefty property tax bills while still benefiting from the state’s income tax break. Renters indirectly help cover property taxes through their lease, but it’s far less painful and often included in a predictable monthly payment.
Texas’s rental market is broad and diverse. Cities like Austin, Dallas–Fort Worth, Houston, and San Antonio offer strong economies, a wide range of housing options, and robust job markets for retirees looking to supplement income or stay engaged. Smaller cities—such as Georgetown, New Braunfels, or Tyler—provide a slower pace and lower rents while still offering access to shopping and cultural amenities.
In short, Texas rewards retirees who still want to work but don’t want to shoulder the costs of homeownership. Renting eliminates the property tax sting, while the absence of state income tax lets your paycheck stretch further. Add in year-round warmth, diverse cultural life, and a strong economy, and you have a retirement strategy that balances practicality with possibility—work when you want, live where you like, and keep more of what you earn under the wide Texas sky.