The Real Cost of Retiring in San Antonio on Social Security and a Small Pension

Retiring in San Antonio on Social Security and a small pension is only feasible if the homeowner owns their property outright and claims the necessary age-65 exemptions. Texas is notorious for its high property taxes, ranking 40th in the nation, and the state income tax burden is minimal, ranking 1st. The school district tax ceiling remains fixed at 65, potentially offering substantial savings over 20 years, but requires filing.

Despite being below the national average in overall cost of living, San Antonio's housing prices are typically below the state average. The Consumer Expenditure Survey shows average annual household expenditures at $78,535 in 2024. Homeowners insurance, electricity, and sales tax are all factors to consider. Medicare premiums and potential IRMAA surcharges add additional costs.

If a retiree plans to stay in San Antonio, filing for age-65 exemptions and owning the home outright can significantly reduce property tax burdens, making the retirement plan more viable.