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Moving from Texas to Colorado Springs: The Real Numbers

Texas has no state income tax, which sounds like a major advantage. But Texas property taxes average roughly 1.6%–1.8% effective — versus El Paso County’s ~0.47%. On a $600,000 home, that gap alone is $6,780–$7,980 per year. For most Texas retirees moving to Colorado Springs, the property tax savings exceed the new income tax burden.

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Income Tax Comparison

ItemTexasColorado Springs
State income taxNone4.40% flat
Military retirementNoneUp to $24K subtraction at 65+
Social SecurityNonePartially; coordinated w/ pension subtraction
Pension / 401kNoneUp to $24K subtraction at 65+

Property Tax Comparison

ScenarioTexas (est. 1.7%)El Paso Co (~0.47%)Annual Savings
$400K home~$6,800~$1,880~$4,920
$600K home~$10,200~$2,820~$7,380
$800K home~$13,600~$3,760~$9,840

The Net Tax Picture

A Texas retiree at age 67 receiving $36,000/year in Social Security and $24,000 in pension income pays roughly $0 in Texas income tax but $10,200/year in property tax on a $600K home. In Colorado Springs, the same retiree pays roughly $1,000–$1,500/year in state income tax (after the $24K pension subtraction and depending on SS coordination) but only ~$2,820 in property tax. Net position: Colorado Springs often wins by $5,000–$7,000/year on combined state tax burden.

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Climate Trade-off

Texas retirees generally move to Colorado Springs for two reasons: escaping Texas heat (Colorado Springs rarely exceeds 90°F in summer; Texas regularly exceeds 100°F) and lower humidity. The trade-off is altitude (6,035 ft, more than a mile above San Antonio or Houston) and real winter weather. Prepare for snow; it is real and it does require clearing.

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