Retiring in Texas is appealing to senior adults for many reasons. Low costs, warm weather, exciting cities, lively college towns, charming small towns, mild climate, and hundreds of interesting active adult communities are just some of the reasons Texas has a lot to offer retirees.
Retiring in Texas give retirees a myriad of retirement choices, from big city living in Dallas, Houston, San Antonio, and Austin, to smaller cities and towns such as Frisco, Mckinney, Allen, and Sugarland. Texas has a variety of attractions including coastal destinations, 100 state parks, The Lyndon B. Johnson Space Center in Houston, the Alamo in San Antonio, the state capitol in Austin, and the Big Bend and Guadalupe Mountains National Park.
Texas Climate varies widely, from arid in the west to humid in the east. The huge expanse of Texas encompasses several regions with distinctly different climates: Generally speaking, the part of Texas that lies to the east of Interstate 35 is subtropical, while the portion that lies to the west of Interstate 35 is arid desert.
Taxes for Seniors Retiring in Texas
Texas is one of only seven states that does not tax individual wage income. Texas has a 6.25 percent state sales tax. Local sales and use taxes levied by cities, counties, transit and special purpose districts can add just over 2 percent to the sales tax, making the combined total on purchases 8.19 percent. (The max local tax rate is 2 percent.)
Retiring in Texas means you will not have a state property tax. Local taxing units assess and collect property taxes on all real and income-producing tangible personal property not exempt by state or federal law. Personal property including automobiles, airplanes, boats and travel trailers that does not produce income is mostly exempt from taxation. Total tax rates vary from location to location and may change from year to year. An exemption is available for taxpayers who are 65 and older or disabled. Texas does not impose an inheritance tax.1
Retirement Communities In Texas
Continuing Care Retirement Communities (CCRC) and Lifecare Communities in Texas offer seniors age 55+ a residence that allows them to be independent and active today but are equipped to provide for their future healthcare needs.
Today’s seniors have many retirement housing options. Deciding where to live is one of the most important and complex decisions one will make. Making these decisions while still healthy can help you avoid difficult and costly situations in the future.
Options for Retiring in Texas
Continuing Care Retirement Communities (CCRCs) are sometimes referred to as Full Service Retirement Communities or Life Plan communities, they are the only type of retirement community that offer residents independent living when they enter the community with the security of having assisted living and/or skilled nursing care options on site.
Texas CCRCs or Life Plan communities generally offer various accommodations including apartments, townhomes, and cottages. These communities usually include common activity areas such as a restaurant-like dining room, a library, activity and craft rooms, an assisted living facility, and a nursing home. Other amenities often include swimming pools, a fitness center, golf courses, convenience stores, walking trails, gardens, beauty/barber shops, banking services and guest accommodations.
Regulating CCRCs In Texas
Currently thirty-eight states regulate CCRCs through various state divisions such as insurance, financial services, aging or elder services, or social services. For those states that regulate CCRCs the mandatory requirements and degree of oversight vary drastically from one state to another. Because of the varying requirements vetting each community individually is the safest way to insure a community is in good standing.
In Texas CCRCs are regulated by the Department of Insurance, all licensed Texas Continuing Care Retirement Communities are required to file an Annual Disclosure Statement including a financial statement.
Selecting A CCRC In Texas
Most CCRCs in Texas have entrance requirements, they vary by location but may include some or all of the following:
- Entry fee to cover the housing unit’s cost and other services and amenities, including contractually provided access to health care. The entry fee may also help keep monthly services fees lower than they might be at a comparable rental community.
- Assets and savings equal to a multiple of the entry fee. A typical range is between 2-4 times the entry fee, but this can vary.
- Minimum age requirements as allowed by the Housing for Older Persons Act.
- Monthly income equal to a multiple of the monthly service fee. The range is usually similar to that required for assets and savings.
- Medical reviews. Providers will often request medical records, talk with a prospective resident’s primary care physician, or request a health exam. The specific type of contract offered by the community will determine the degree of emphasis placed on this requirement.
- Medicare and possibly a Medicare supplement policy, or a similar private-pay plan
- Will, healthcare power of attorney, and durable power of attorney
Entry Fee Requirements For Texas CCRCs
Most CCRCs or Life Plan Communities in Texas require an entry fee. The entry fee is required for several reasons. First and foremost, it secures a resident’s contractual and priority access to the care they may need while living in the community. The money received from entry fees is also used to help pay down, or limit, the amount of debt required for development, expansion, or long-term capital projects, which keep the community attractive and competitive in the marketplace and also benefits current residents. A portion of the entry fee may go towards an endowment fund set up by the community. An endowment fund is used by many CCRCs- particularly non-profit providers- offer a financial assistance to help ensure that if a resident runs out of money due to a longer than average stay in the healthcare facility, or some other unforeseen circumstance, they will not be forced to leave the community.
Is A Texas Life Plan Retirement Community Right For You?
A CCRC or Life Plan Community in Texas might be a good fit for you or a loved one, you can get detailed information on top-rated Life Plan communities in Texas by searching myLifeSite’s continuing care retirement community directory and proprietary database for helpful profile reports. For all the information you need and questions to ask as you begin contacting retirement communities directly myLifeSite is a one stop resource. Our independent reports provide everything you need to make an informed decision including retirement community pricing, important contract details, healthcare aspects, and more.
Updated May 2021