New Braunfels draws retirees for good reasons: the rivers, the Hill Country, a real downtown, and the medical centers of San Antonio within driving distance. A move here also changes your tax picture, your insurance, and a long list of paperwork. This guide covers the practical side, so the decision can rest on the full picture rather than on the absence of a state income tax alone.
No state income tax, but a different tax mix
Texas does not have a state personal income tax. Wages, pensions, IRA and 401(k) withdrawals, and Social Security benefits are not taxed by the state, although federal income tax still applies.
That does not mean taxes disappear. Texas has no state property tax, but local governments — school districts, the county, the city, and special districts — levy property taxes, and those taxes can be a significant part of a retiree’s budget. State and local sales taxes also apply to many purchases. When comparing New Braunfels with where you live now, it helps to compare total taxes for your actual situation rather than one category at a time.
Property taxes and homestead exemptions
If you own and live in your home, you can apply for a residence homestead exemption. School districts are required to exempt $140,000 of a homestead’s value from school taxes. Homeowners who are 65 or older, or disabled, qualify for an additional $60,000 school district exemption. Other taxing units may offer local-option exemptions, including up to 20 percent of a homestead’s value (at least $5,000) and an additional exemption of at least $3,000 for homeowners 65 or older or disabled.
The age 65 or older exemption applies as of January 1 of the tax year in which you turn 65. Once you qualify, your school district taxes on the homestead are generally capped at the amount paid in that year — often called the school tax ceiling. The ceiling can increase if you make significant improvements to the home, can continue for a surviving spouse who is 55 or older, and a percentage of it can transfer to another Texas home if you move. Counties, cities, and junior college districts may adopt their own tax ceilings for these homeowners.
For homes in Comal County, apply through the Comal Appraisal District, 900 S. Seguin Ave., New Braunfels, TX 78130, (830) 625-8597. The application is generally Comptroller Form 50-114, with a copy of a Texas driver license or ID card showing the same address as the homestead. If your home is in a different county, apply with that county’s appraisal district. Exemption amounts and local options can change, so confirm current figures with the appraisal district.
Healthcare access
Texas state hospital licensing records list two hospitals in New Braunfels: CHRISTUS Santa Rosa Hospital – New Braunfels and Resolute Baptist Hospital. CHRISTUS Santa Rosa Hospital – San Marcos is to the north, and San Antonio, to the south, has a broad range of hospitals and specialists.
Proximity is only part of the question. Before you move, confirm that the doctors, hospitals, and pharmacies you expect to use participate in your Medicare or insurance plan here, and whether the specialists you see are accepting new patients. If you use a Medicare Advantage plan, networks are local, so a plan that works where you live now may not work in Comal County.
Cost of living, in general terms
Costs here depend heavily on which part of town you choose, the age and size of the home, and how you live. A few patterns are worth planning for: property taxes are a meaningful recurring cost even after exemptions; homeowners insurance reflects Central Texas weather, including hail and wind; summer cooling is a real utility expense; and homes near the Comal and Guadalupe Rivers may warrant a closer look at flood risk and coverage. We would rather build your budget from your actual numbers than rely on a general cost-of-living index.
Moving from another state
- Driver license. New residents can generally drive on a valid out-of-state license for up to 90 days after moving before getting a Texas license.
- Vehicles. A vehicle brought from another state generally must be registered in Texas within 30 days. The Texas Department of Motor Vehicles lists the steps and documents required.
- Insurance. Move auto and homeowners coverage to Texas policies, and review umbrella and long-term care policies for any state-specific terms.
- Voter registration. Register in your new county. Registration generally must be submitted at least 30 days before an election to vote in it.
- Estate documents. Have an attorney licensed in Texas review your will, powers of attorney, and health care directives. Texas is a community property state: property acquired by either spouse during marriage is generally community property, and property brought from another state may be treated differently. An attorney can explain how that applies to you.
- Taxes in your former state. Ask your CPA about a final part-year return there, and keep records that document your move.
Medicare enrollment timing
Your Medicare initial enrollment period lasts seven months: the three months before the month you turn 65, that month, and the three months after. Missing it can mean a Part B late enrollment penalty for as long as you have Part B, unless you qualify for a special enrollment period, for example through employer coverage based on current work. If you are delaying Social Security, you generally still need to sign up for Medicare around 65. Our Social Security claiming guide covers how claiming, taxes, and Medicare premiums fit together.