If you’ve spent any time researching a move to the Lone Star State, you’ve probably heard the same two-sentence summary: "Texas has no state income tax, but the property taxes will get you."
While it’s true that Texas relies on property taxes to fund our world-class infrastructure and schools, the "sticker shock" is often misunderstood, especially when you look at the real cost of living in Boerne, TX. For retirees and families looking to preserve wealth while enjoying a high-end lifestyle, Kendall County is often described as the "Goldilocks" zone. It’s not just about the rate on the paper; it’s about how those numbers interact with your overall financial plan.
At Retire in Boerne, we love helping folks see past the myths. And at Mau Sanchez Capital, we take it a step further by integrating these specific local costs into a comprehensive wealth management strategy that keeps your retirement income predictable.
Let’s break down why Kendall County is the sweet spot for your budget.
1. Kendall vs. The Neighbors: A Numbers Game
When you compare Kendall County to its more urban neighbors like Bexar (San Antonio) or Travis (Austin), the difference in the tax burden becomes clear. While every property is unique, the overall "effective" tax rate in Kendall County tends to be lower than in the big-city counties.
Kendall County vs. Bexar County
In Bexar County, you’re often dealing with higher city rates and hospital district taxes. For 2025, while Bexar has seen some rate cuts, the median tax bill on a comparable home still often outpaces what you’d see in Boerne. According to official tax rate data, the combination of city, county, and school taxes in San Antonio can quickly climb.
Kendall County vs. Travis County
If you’re looking at Austin, prepare for a different league. Travis County rates have seen significant shifts, including a voter-approved increase for 2025. When you factor in the high school district rates in Austin, a retiree with a $1M home in Travis County will almost certainly pay a premium compared to the same $1M home in Kendall County.
The "Sweet Spot" Reality:
The Kendall Appraisal District reports a median effective property tax rate of around 1.00%, which is remarkably close to the U.S. national average. For a state that has zero income tax, having an average property tax rate is a massive win for your cash flow.
2. The Retiree’s Secret Weapon: The Over-65 Exemption
This is where the math really starts to favor the retiree. Texas offers a robust homestead exemption, but for those 65 and older, the benefits get even better.
The School Tax "Freeze"
This is the single most important piece of the puzzle for retirement planning. Once you qualify for the Over-65 exemption, your school district taxes are frozen. This means that as long as you live in that home and don't make significant improvements (like adding a guest house), the dollar amount you pay to the school district will never go up, even if your home value skyrockets or the tax rate increases.
For example, the Boerne ISD tax rate for 2025 is approximately $1.0109 per $100 of value. If you move here and freeze your tax at that level, you’ve just eliminated one of the biggest inflationary risks in your retirement budget.
Local Exemptions
Beyond the school freeze, Kendall County and the City of Boerne often offer their own additional exemptions for seniors. It’s not uncommon to see thousands of dollars shaved off your taxable value before the rates are even applied. You can read more about how Texas retirement taxes work in our deeper dive.
3. Why Your Tax Dollars "Feel" Different in Boerne
There’s a psychological component to taxes. It hurts less to pay a bill when you can see exactly where the money is going. In Boerne, the ROI on your property taxes is visible every time you leave your driveway.
- Safety and Infrastructure: Kendall County consistently ranks as one of the safest areas in the region, with meticulously maintained roads and public spaces.
- The "Boerne Lifestyle": Your taxes fund things like the Cibolo Nature Center and the beautifully preserved historic downtown.
- Preserving Home Value: While nobody likes a high appraisal, those strong school districts and high-end amenities are exactly what keep Boerne real estate values stable and growing.
4. Integrating Taxes into Your Financial Strategy
At Mau Sanchez Capital, we don't look at property taxes as just an annual expense; we look at them as a factor in your total portfolio construction.
When constructing a retirement income plan, we prioritize:
- Liquidity and Transparency: Ensuring you have the cash flow from your investments (primarily publicly traded stocks and traditional fixed income) to cover your living expenses, including those property tax bills, without stress.
- Predictability: By leveraging things like the school tax freeze, we can create a more accurate "burn rate" for your retirement years.
- Efficiency: Avoiding high-fee, complex "alternative" investments that lock up your money. We believe a well-allocated portfolio of liquid assets is the best way to handle the dynamic nature of Texas living.
If you’re moving from a high-income-tax state like California or New York, the shift in how you pay for government services can be jarring. Our job at Mau Sanchez Capital is to help you navigate that transition so you can focus on enjoying the Hill Country, not staring at spreadsheets.
5. Practical Logistics: How to Claim Your Savings
If you’re ready to make the move, or you’ve recently arrived, here are the three things you need to do to ensure you’re getting the "sweet spot" deal:
- File Your Homestead Exemption: You must do this through the Kendall Appraisal District. It’s not automatic!
- Verify Your Age: If you’re 65, make sure the Over-65 exemption is noted. This triggers that all-important school tax freeze.
- Check for Discounts: Did you know Kendall County offers early payment discounts? Paying in October can save you 3%, November 2%, and December 1%.
"The best retirement plan isn't the one with the most complex investments; it's the one that allows you to live the life you want in a place you love, without worrying about the bill." , Mau Sanchez
The Bottom Line
Is Kendall County the cheapest place on earth? No. But it is one of the most valuable. When you weigh the lack of state income tax against the reasonable property rates (especially with the retiree exemptions), the math for Boerne living becomes very compelling.
If you want to see how a move to the Hill Country fits into your long-term wealth strategy, we’re here to help. At Mau Sanchez Capital, we specialize in retirement income planning that accounts for the nuances of Boerne life.
Ready to talk about your Hill Country retirement?
Schedule a call with a fiduciary financial advisor today: https://calendly.com/portafoliocapital/15min
Learn more about our approach at https://portafoliocapital.com/ or give us a call at (512) 593-8380.
Disclaimer: Portafolio Capital Management dba Mau Sanchez Capital is a Registered Investment Adviser. This content is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any security. Advisory services are provided only pursuant to a written advisory agreement. We are not tax advisors and this information should not be construed as tax advice. Please consult with a qualified tax professional regarding your specific situation.
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