Small towns are what retirees are seeking for retirement, and Texas is the bonus!
Being the second-largest state in the U.S., Texas has numerous small towns worth considering for retirement planning. And Texas is frequently cited as a budget-friendly option. As a native Texan, it’s hard to think that I wouldn’t retire in Texas, unless it’s on a beach in Hawaii! If you’re considering retirement, this article highlights Texas retirement destinations.
Benefits of retiring in Texas include a lower cost of living, no state income tax, widespread healthcare, and mild weather. These are just a few reasons why retirees are either staying in Texas or relocating there for retirement. Additionally, we offer numerous opportunities for outdoor activities and culture, as well as proximity to major cities such as Houston, Austin, Dallas-Fort Worth, and San Antonio.
Read Next: 7 Places To Retire in East Texas
Best Small Towns To Retire In Texas
Towns with a population under 25,000 are considered small towns. But, if it were up to me, it would be way lower. There’s something about a small town with fewer than 10,000 residents that’s appealing. You’re closer to grocery stores, in a peaceful setting, with scenic landscapes that promise a great experience, and it may even be more affordable. However, if you need to be close to medical centers and doctors, you may want to consider the towns with higher populations.
Below are a few of our favorite small towns in Texas that we believe are ideal for retirement.
Next Read: Oh, and if you’re set on the Hill Country for retirement, you can stop here and go straight to that article right now. It’s a growing area for all sorts of reasons, especially the outdoors – Best Texas Hill Country Towns To Retire.
1. Glen Rose (North Texas)
Population 2,817
Small but mighty, with the Paluxy River running through town, a natural setting, and a perfectly square, fully walkable downtown, Glen Rose is a prime location for retirees. Dinosaur Valley State Park, Dinosaur World, and Fossil Rim are the perfect attractions for families to visit with their children. Grandparents also have these three attractions to take their grandkids to.
Not far from Fort Worth, along with everything else the town has to offer, makes it a great place to call home in your golden years. This town is on my list as well (if I can’t afford the Hill Country).
My mom and I visited Glen Rose earlier this year, and planned to avoid the top attractions. Instead, we stuck close to the town square, shopping, eating, and getting ice cream! We had fun walking around the square with our dogs.
2. Decatur (North Texas)
Population 8,016
Yes, Decatur, TX, in Wise County. County taxes are less expensive, and it’s far enough out from the busy metroplex of North Texas, and close enough to Fort Worth, should you want to dine at upscale restaurants or visit the attractions that the big city offers. What I love about Decatur is its downtown square, the beautiful courthouse, and the fun shops around the square.
The LBJ National Grasslands is a 20,309-acre public recreation area located in Wise County, offering excellent opportunities for hiking, hunting, and birding.
Decatur offers many grocery stores, including Walmart. If you’re not too worried about eating healthy, consider this small town in North Texas. Hopefully, healthy stores will open one day. They might be there now, but the last time I checked, there were none.
3. Mineral Wells
Population 15,173
How would you like to be close to Lake Mineral Wells State Park, the Palo Pinto Mountains, the Brazos River, Lake Palo Pinto, and a short drive to Possum Kingdom Lake? Take your pick – the options are plenty for a body of water.
Mineral Wells is home to the famous mineral water company and the Crazy Water Hotel. This small town in Texas’s Midwest is working to appeal to a broad audience and may be a place to consider retiring. Don’t overlook it in your research.
4. Bastrop (Central Texas)
Population 11,189
Its proximity to Austin makes Bastrop a popular destination for retirees. City nightlife (if that’s important to you) is only 30 minutes away, and when the family visits, you can take them to the Capitol. Furthermore, medical facilities are just a short drive away.
When the grandkids come to visit, Bastrop is filled with family-friendly activities, including the local zoo and the nearby Regency Suspension Bridge, aka the “Swinging Bridge,” that you can walk over or bike over while enjoying the sights of the Colorado River.
Wandering through historic downtown daily, catching up with friends at the local coffee shop, and hiking through Bastrop State Park will never get old.
5. Roanoke (Tarrant County)
Population 9,943
Never mind the construction going on around this town right now. I promise it will get better. I live nearby, and we are waiting patiently for Hwy 114 to be fully completed. It will be great when it’s all finished. Roanoke is a lovely area, situated not too far from the Dallas-Fort Worth area and the DFW Airport, making it an ideal place to retire between two major cities. You’re not far from the country, and there’s a Walmart in town, so if that’s something you want, you may want to consider this small town off Hwy 114 and Hwy 377.
There is also a movie theater in the city, many restaurants within walking distance, historic homes in the downtown area, and a darling walkable downtown.
They have a lovely library and a senior citizens community building. Not to mention, a Babe’s Chicken!
6. Graham (Texas Midwest)
Population 8,750
I do love the people in this town. My mom and I recently visited Graham and discovered some great things happening there. First, their town square is huge. It’s the largest downtown square in America, featuring shops, a wine store, a bookstore, restaurants, a container hotel, and more surrounding it.
With Fort Belknap in the vicinity, Oak Ranch Resort and the Wildcatter Ranch at your fingertips for get-togethers with family, you’re sure to find many things in this small town to keep you busy and not get bored during your retirement years. For a better sense of this town, visit my latest article on things to do in Graham, TX (below).
Graham, TX, is a little over an hour’s drive from Fort Worth and is genuinely one of our top picks for small towns to retire in Texas.
7. Possum Kingdom Lake
Population: Less than 2,000 full-time residents
A retiree’s dream is living at Possum Kingdom Lake. If that’s you, don’t pass up the thought of living your retirement years in a place where fishing and boating are popular pastimes. I’m not familiar with Possum Kingdom, but I know it’s a popular spot for weekend getaways among people living in the Dallas-Fort Worth Metroplex.
There is Possum Kingdom State Park, where many people swim and have picnics. The park also features a store for supplies and incidentals, as well as a small grill that serves hamburgers and other items.
8. Granbury
Population 13,793
Once again, Granbury, Texas, has been named “Best Historic Small Town in America” for the fourth time, winning the 2025 USA Today 10 Best Readers’ Choice Awards. No wonder people are flocking to this town for enjoyment. Whether it’s for retirement, a lake house, or tourism, Granbury offers many things everyone is looking for.
If it’s not too crowded for you (I don’t think it is), consider this town for your retirement years, whether on Lake Granbury, in the historic downtown area, or on the outskirts. You’ll be close to many attractions, including the beach, an opera house, restaurants, and boutiques. Glen Rose is just down the road, about 10 minutes away.
9. Richmond, TX (Suburb of Houston)
Population 13,000
Richmond, Texas, is an inviting retirement destination, offering small-town charm, rich history, and affordable living. Just a short drive from Houston’s big-city conveniences, it provides abundant parks and trails, cultural treasures such as the Fort Bend Museum, and excellent access to healthcare. Retirees will find a welcoming community, lively local events, and a grounded, friendly atmosphere that makes settling in feel both comfortable and rewarding.
History buffs may enjoy living in Richmond, TX, for its wealth of historic landmarks, including the Morton Cemetery, the stately 1908 Historic County Courthouse, the 1883 residence of Congressman John M. Moore, and the quaint Long-Smith Cottage nestled within the Fort Bend Museum grounds. Throughout the city, countless other beautiful and storied homes reflect Richmond’s rich past.
10. Cedar Creek Lake (Southeast of Dallas)
Population (AI says around 503 full-time residents live here)
Not all lakes in Texas allow you to “live right on the lake,” but at Cedar Creek Lake, you can own a home with a dock on the lake. It is not a lake managed by the US Army Corps of Engineers.
Cedar Creek Lake is where I learned to waterski and operate a boat. I taught all my friends to do the same. My family’s lake house, which we had owned for over 50 years, was located at Cedar Creek Lake in the Leisure Land Edition. I have many fond memories of this lake, from my childhood to taking my son and grandson here. My parents eventually retired here. When my father passed, the house and yard were too much for my mother to manage, so she sold it about four years ago.
Cedar Creek Lake is situated around several small towns, including Mabank, Gun Barrel City, Malakoff, Payne Springs, and Toole. The lake is full of bass, crappie, and trout. The lake is well known for its waterskiing and the various new watersports that children enjoy today.
11. Lake Whitney (South of Fort Worth)
Population – according to research, there are 361 full-time residents on the lake.
Do you like lake life and prefer to be closer to Fort Worth than Dallas? If so, Lake Whitney could be a viable option for a lakefront retirement. Lake Whitney is one of Texas’s largest lakes, boasting 225 miles of shoreline.
Lake Whitney is a US Army Corps of Engineers lake, so it’s not quite clear whether you can live directly on the lake, unlike at Cedar Creek Lake.
12. Robson Ranch in Denton, TX
Population 18,252 in Robson Ranch (not small, though, but nice)
If you’re an active retiree, you may want to consider Robson Ranch off I-35 between Justin, TX, and Denton. This 55+ community offers a range of outdoor recreational activities, including golf and tennis. It’s growing out that way, with several housing additions across the street. I’m hopeful that this area will soon get a large grocery store. If not, many go to Denton to shop.
13. Breckenridge, TX
While I know at least four couples or single women who have retired in Breckenridge, I’m still scouting the area for all the goodies for retirees. Here is what I do know. There is a Walmart, a lake (but it’s low), a very nice downtown with lots of shops and restaurants, and it’s about an hour’s drive to Abilene, TX, and not far from Possum Kingdom Lake. I like the area, myself. I have friends there, and they own Soggy Dog Wine & Brew.
There are 13 excellent places in Texas to consider retiring. Have you found a favorite?
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Some of these towns cost an arm and a leg.
Yes they are, yet some are not.
Trinity or Livingston? Large lake community low housing cost
Livingston, TX, I’ve heard of, but not Trinity. I’ll check it out. Thanks for your comment.