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Moving from Washington to Texas — 55+ Retirement Guide

The honest financial comparison, what your Washington equity buys in the Austin-San Antonio corridor, and the practical steps before you list your home

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Why Washington Buyers Are Moving to Texas

Washington State has no income tax — the same headline advantage Texas offers. But Washington does have an estate tax that affects estates over $2.193 million, a capital gains tax of 7% on gains over $262,000 enacted in 2022, and property taxes that have risen sharply with Puget Sound area appreciation. Seattle, Bellevue, and Eastside homeowners who purchased before 2015 are sitting on $400,000–$900,000 in equity. The move to Texas eliminates WA capital gains tax risk on investment accounts, provides comparable no-income-tax status, and accesses 55+ communities at price points far below the Puget Sound market.

The Tax Comparison

Tax CategoryWashington (Puget Sound)Texas (65+ primary)
State income tax$0 (no income tax)$0
Capital gains tax (over $262K gains)7% on excess (enacted 2022)None
Property tax on $500K home~$4,000–$6,000/yr~$4,800–$6,500/yr (slightly higher)
Estate taxYes — estates over $2.19MNone

For WA buyers with significant investment portfolios, the capital gains tax elimination is the primary financial argument. Property taxes are comparable. The estate tax difference matters for buyers with estates approaching or exceeding $2 million. Consult a CPA on your specific situation before the move.

What Your Washington Equity Buys in Texas

Seattle and Eastside homeowners frequently arrive with $500,000–$1,000,000+ in proceeds. Trilogy at Rough Hollow is the most natural landing spot for WA buyers accustomed to lake and water culture — the Lake Travis marina provides the water relationship Puget Sound buyers do not want to fully surrender. Sun City Texas is the choice for WA buyers primarily motivated by financial optimization and golf access.

Texas CommunityPrice RangeHOABest For
Sun City Texas (Georgetown)$300K–$700K~$100/moValue, 54-hole golf, maximum amenity scale
Kissing Tree (San Marcos)$350K–$700K~$263/moHill Country terrain, halfway between Austin and San Antonio
Trilogy at Rough Hollow$600K–$1.5M+$350–$450/moLake Travis access, luxury product, closest to Austin
Villas at Kissing Tree$270K–$450K$255/mo (lawn incl.)Best value entry to Kissing Tree amenities
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Top Community Recommendation for Washington Buyers

Washington buyers tend toward either Trilogy at Rough Hollow (water-orientation, premium product, tech culture proximity in Austin) or Kissing Tree (Hill Country terrain resonates with PNW buyers who value natural settings and outdoor walking culture).

Steps Before You List Your Washington Home

  1. Consult a CPA with multi-state experience to model your full tax picture — Texas income tax savings, Texas property tax increase, and any state-specific capital gains considerations on your home sale
  2. Research Medicare plan availability in Williamson County (Georgetown) or Hays County (San Marcos) — plans and networks differ from your current state
  3. Plan a stay-and-play visit of at least 5–7 days — not a weekend — to experience the Austin-area traffic, heat, and community feel in the actual conditions you will live in
  4. Get pre-qualified with a Texas lender; WA jumbo loan standards and Texas lender practices differ
  5. Identify replacement specialists in the Austin or San Antonio metro for any medical conditions you are currently managing
  6. File Form 50-114 with your county appraisal district within your first tax year to establish homestead and over-65 exemptions

Also Worth Reading

Sun City Texas Guide →Kissing Tree Guide →Texas Property Tax Guide →Texas Income Tax Guide →

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