Pennsylvania is the other secret retirement-income haven: Social Security, pensions, and retirement-age 401(k)/IRA withdrawals are all exempt from the 3.07% flat tax, so the famous Texas income advantage is worth approximately nothing to a PA retiree. The line that IS worth something is the one Pennsylvanians rarely price until probate: an inheritance tax that takes 4.5% from your children — from the first dollar, no exemption — and more from everyone else. For estates of any size, that single line can outweigh every other number on this page.
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Talk to a Specialist →| Line | Pennsylvania | Texas / DFW | Verdict |
|---|---|---|---|
| Income tax on retirement income | $0 — SS, pensions, and retirement-age plan withdrawals all exempt despite the 3.07% flat rate | $0 | Wash — ignore any pitch leading with it (pre-59½ withdrawals and working income do gain) |
| Inheritance tax | 4.5% to children/grandchildren, 12% to siblings, 15% to others — from the FIRST dollar, house and IRAs included (spouses exempt) | None, of any kind | Texas — on a $1M estate to the kids, ~$45,000; this is the page\u2019s headline for a reason |
| Property tax | ~1.4–1.6% effective (collar counties higher); school taxes dominate, relief programs income-capped | ~1.8–2.5% headline; the over-65 stack (no income test) pulls 55+ price points to parity or better | Near-wash, Texas edging ahead after 65 on structure |
| The house trade | Sell suburban Philly/Pittsburgh at $300K–$500K | Buy new single-story at $350K–$500K | Close to even — the rare feeder state where the trade is roughly house-for-house |
| Local quirks left behind | Local earned-income taxes, per-capita taxes, the borough/township patchwork | One county appraisal district and a homestead form | Small dollars, genuine simplification |
The execution note that makes the headline real: the inheritance tax follows DOMICILE (and PA-situs real estate), so the move only protects your heirs once Texas domicile is clean — license, voter registration, the homestead filing, and a Texas-law estate plan — and once the PA house is sold rather than kept as a rental, because PA real estate stays PA-taxable at death no matter where you live. One organized season of paperwork, the over-65 toolkit seated, and the 4.5% line is your family’s, permanently.
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PA movers split on geography of origin: the Philadelphia side, accustomed to township texture and four-season landscaping, gravitates to Heritage Ranch\u2019s mature trees and club rhythm; the Pittsburgh side’s value instincts find Union Park and Gatherings immediately legible. Both halves should start where every estate-motivated mover should: the total cost table, with the estate plan revision booked for the same season as the closing.
The domicile sequence, the PA-situs property question, and the community shortlist — coordinated so the headline actually lands.
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