No State Tax Helps Two Texas Towns Rank Top Five
Retirees weighing a Texas move can compare how a no-income-tax state changes their annual withdrawals.
Updated on Nov. 6, 2026 in Retirement Planning
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U.S. News & World Report ranked The Woodlands fourth and Spring fifth on its 2027 Best Places to Retire list, with both Houston-area communities placing in the top five for a second consecutive year. The rankings evaluated more than 850 cities and surveyed Americans 45 and older, which is the group most likely to be weighing a retirement move now.
Why it matters
Affordability carried the most weight in the 2027 rankings, and Texas' lack of a state income tax gave both towns an edge over coastal states for households stretching retirement savings. For pre-retirees comparing where their nest egg will go furthest, the tax treatment and cost of living in these communities are the factors the rankings emphasized most.
The Woodlands and Spring placed fourth and fifth among more than 850 cities evaluated in the 2027 rankings, which surveyed Americans 45 and older. Both towns repeated top-five placements from the prior year, and affordability was the heaviest-weighted factor.
The players
U.S. News & World Report
A consumer publication whose annual Best Places to Retire rankings are widely used by households comparing retirement destinations on cost and quality of life.
Aging in Place
A nonprofit co-founded by Erika Pratt that provides seniors in The Woodlands with rides to appointments and hosts social gatherings to support independent living.
The details
The rankings weighted affordability most heavily, so a town's score rises when housing, living costs, and taxes take a smaller share of a retiree's income. Texas levies no state income tax, which means retirement withdrawals from savings and pension income are not reduced by a state tax bill in these communities, a difference that can matter over a multi-decade retirement. Households using a fixed withdrawal plan from retirement accounts can therefore keep more of each dollar drawn when relocating to a no-income-tax state.
Timeline
Erika Pratt moved to The Woodlands in 1989, decades before the 2027 rankings were published.
The 2027 Best Places to Retire rankings placed The Woodlands fourth and Spring fifth.
Money Landscape
Texas' no-income-tax status has made it a recurring draw in the annual U.S. News & World Report retirement rankings, and the 2027 results show both Houston-area towns holding top-five spots for a second straight year. The repeated placements suggest that affordability and tax treatment remain the main pulls for retirees comparing destinations in the current cost environment.
Households approaching retirement that are weighing a move may find that a no-income-tax state changes how far a fixed withdrawal goes, so comparing total annual costs including housing and taxes is a practical first step. Anyone considering a relocation should review the numbers with a qualified financial or tax professional before committing.
The takeaway
Affordability and tax treatment drove the 2027 rankings, so comparing the full annual cost of a retirement location is worth doing before any move. Reviewing your projected retirement income with a qualified financial professional can show how a change in state tax exposure would affect your plan.
Further reading
For more on how relocating affects retirement income, see Retirement Planning coverage on We are Savers.
Source note: This article includes information reported by Hometown Radio KBEC.
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