Retiring in Austin, TX: What You Need to Know
Austin's cost of living has surged 35% since 2019, driven by tech migration from the coasts. Property taxes are among the highest in Texas (averaging 1.8% — no state income tax, but property tax fills the gap). The FIRE trade-off: no state income tax saves retirees thousands annually, but rising home values increase property tax bills. Many Austin FIRE seekers buy in surrounding areas like Round Rock, Cedar Park, or San Marcos where costs are 15–20% lower while maintaining access to the Austin metro.
What Does $1,300,000 Get You in Austin, TX?
With a FIRE number of $1,300,000, you can safely withdraw $52,000 per year ($4,333/month) to cover living expenses in Austin, TX. This follows the 4% rule — the widely-used benchmark that says a diversified portfolio can sustain a 4% annual withdrawal rate indefinitely.
How to Reach FIRE for Austin, TX
- Know your real expenses. The $52,000 average may not match your lifestyle. Track every dollar for 3 months to get your true number.
- Optimize for local taxes. State income tax, property tax, and sales tax vary enormously and directly impact how much you need.
- Factor in healthcare. If retiring before 65, budget $400–$800/month for ACA marketplace insurance in Austin, TX.
- Run your own numbers. Use the FIRE calculator to enter your actual income, spending, and investments for a personalized timeline.