25 Best Places to Retire

Fredericksburg, TX
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Fredericksburg's biggest draws: Texas Hill Country; opportunities for golfing, wine tasting, and antiquing.
Best if you're looking for: Resort area
Median home price: $320,000
Top state income tax: None

Founded in the 19th century by German immigrants, this municipality in Texas Hill Country has never forgotten its roots.

German-themed bakeries and beer gardens dot the downtown, and Oktoberfest remains a major celebration.

Retirees flock to Fredericksburg for warm weather, income-tax-free living, and the outdoors. The city's largest park, the 150-acre Lady Bird Johnson Municipal Park, offers lake fishing, a 72-par golf course, and an Olympic-size pool for swimming.

See complete data for Fredericksburg

Source: OnBoard Informatics; NOAA; Zillow; Trulia; National Association of Realtors; Tax Foundation; MONEY research
Notes: Home cost is median sales price except for Bloomington, Aberdeen, Ottawa, Traverse City, Coeur d'Alene, Fredericksburg, and St. George, which had only median list price available. Security income excluded in all states listed except Utah; most states exclude some pension income.
  @Money - Last updated December 17 2012 10:24 AM ET
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