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Horseshoe Bay vs Lakeway: retirement compared

Horseshoe Bay and Lakeway are the two ends of the Highland Lakes chain described in Highland Lakes, and they are the region's most different towns. Horseshoe Bay is a Lake LBJ resort city that straddles Llano and Burnet counties, with a golf-club culture and a population in which 47.9 percent of residents are 65 or older. Lakeway is a Travis County city on Lake Travis, the most suburban town in the region, with a 106-bed hospital inside the city and home values well above Horseshoe Bay's.

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Horseshoe Bay and Lakeway at a glance

Figures come from each place page and name their own period; sources are listed on those pages.

MeasureHorseshoe BayLakeway
Population (ACS 2019-2023 5-year estimate)4,53419,130
Residents aged 65 and over (ACS 2019-2023 5-year estimate)47.9%24.4%
Median age (ACS 2019-2023 5-year estimate)64.650.3
Median home value (owner-occupied) (ACS 2019-2023 5-year estimate)$489,100$695,400
Median gross rent (ACS 2019-2023 5-year estimate)$1,575 per month$3,123 per month
Median household income (ACS 2019-2023 5-year estimate)$105,024$164,978
Property tax context2026 rates per $100 of taxable value, Burnet CAD table: City of Horseshoe Bay 0.26775; Burnet County General 0.3009; Burnet Consolidated ISD 0.8673; Marble Falls ISD 0.8805 (units overlap; rates are not added) (tax year 2026)City of Lakeway rate 0.170076 per $100 of assessed value (0.115873 maintenance and operations, 0.054203 debt); county, school and special-district rates are separate and not combined here (fiscal year 2027 city rate)
Hospital accessNo inpatient hospital inside the city; the hospitals named for the area are Baylor Scott & White Medical Center - Marble Falls and Ascension Seton Highland Lakes in Burnet (hospital system and CMS pages read October 2026)Baylor Scott & White Medical Center - Lakeway, a 106-bed full-service hospital open 24 hours, is inside the city (hospital system page read October 2026)
55+ communities in our research10

Horseshoe Bay vs Lakeway: the short answer

Horseshoe Bay and Lakeway are the two ends of the Highland Lakes chain described in Highland Lakes, and they are the region's most different towns. Horseshoe Bay is a Lake LBJ resort city that straddles Llano and Burnet counties, with a golf-club culture and a population in which 47.9 percent of residents are 65 or older. Lakeway is a Travis County city on Lake Travis, the most suburban town in the region, with a 106-bed hospital inside the city and home values well above Horseshoe Bay's.

The questions they raise are different. In Horseshoe Bay a buyer asks which county a lot is in, whether it carries a district assessment, and how the city's own water stages work. In Lakeway a buyer asks which school and utility districts tax the address, how far Lake Travis can fall, and whether the survey median home value matches the neighborhood. The tax figures below are not like-for-like: Horseshoe Bay's city rate is for tax year 2026, Lakeway's city rate is the fiscal year 2027 rate adopted in September 2026, and Travis County's published figures are for tax year 2025. For the statewide rules, see property taxes and appraisal districts and homestead and age-65 exemptions.

Full profiles: Horseshoe Bay and Lakeway.

Which one fits you

Choose Horseshoe Bay if

  • You want a golf-and-lake resort setting where nearly half of residents are 65 or older and club membership shapes the social calendar, and you accept that the nearest listed hospital is in Marble Falls.
  • You want a city property-tax rate that has been steady, 0.26775 for tax years 2024 through 2026, and a city that offers full-time residents a 20 percent homestead exemption on the city bill.
  • You are comfortable checking whether a lot sits in Llano or Burnet County, and whether it is inside a district with a separate assessment such as Summit Rock or Escondido.
  • You prefer a pass-through lake that LCRA operates within about a foot in normal times to a lake whose level is meant to rise and fall.

Choose Lakeway if

  • You want a full-service hospital inside the city, with Baylor Scott & White Medical Center - Lakeway describing itself as a 106-bed hospital that is open 24 hours.
  • You want a suburban city with a swim center, an activity center, parks and city events, and you can afford a market in which the survey median home value is $695,400.
  • You accept a lake that is designed to fluctuate and will check a lot's elevation relative to the flood pool, and the boat ramp or dock you depend on, before buying.
  • You are willing to look up the school district and any municipal utility district for the exact address in the county's rate table, because the city rate is only one part of the stack.

Horseshoe Bay and Lakeway: best for, and think twice if

Horseshoe Bay

Best for

  • Buyers who want a golf-and-lake setting among peers: 47.9% of residents are 65 or older, and the sources list a Hill Country Golfers group of 150 or more and Lake LBJ frontage.
  • If you want a steady city tax rate: Horseshoe Bay's adopted rate is listed at $0.26775 per $100 for 2024, 2025 and 2026, and a full-time resident may qualify for a 20 percent city homestead exemption.

Think twice if

  • Think twice if you need an inpatient hospital in town: the sources say there is none inside Horseshoe Bay, and the nearest one it names is Baylor Scott & White Medical Center - Marble Falls.
  • Buyers who want one predictable tax bill should note the city spans Llano and Burnet counties, so the appraisal district and school district (Burnet Consolidated ISD 0.8673 or Marble Falls ISD 0.8805) depend on the lot.
  • Lots in Summit Rock carry a capital-improvement assessment of $42,000 per lot ($30,000 if sold before 2013), payable in $2,800 installments added to the tax bill; the 39.5% vacancy rate also means quiet streets.

Lakeway

Best for

  • Buyers who want an inpatient hospital and Lake Travis in the same city: Baylor Scott & White Medical Center - Lakeway, a 106-bed hospital open 24 hours, is inside Lakeway.
  • If you track the city's own levy: Lakeway's rate for fiscal year 2027 is $0.170076 per $100, split between maintenance and operations and debt service, with county and school units taxed separately.

Think twice if

  • Think twice about entry cost: the ACS median home value is $695,400 and median gross rent $3,123 a month, before school, county and any utility-district taxes.
  • Lake Travis is allowed to fall in dry years and holds a flood pool of 776,062 acre-feet; buyers who want a steady lake view should check lot elevation against the FEMA map and the lake-level history.
  • Buyers who expect to stop driving should note the sources describe Lakeway as a drive-dependent suburban city and advises testing daily errands and medical trips before committing.

Each point restates facts from that place's own page and sources. It is not a rating.

Horseshoe Bay and Lakeway side by side

DimensionHorseshoe BayLakeway
City tax rates and the year problemThe Burnet Central Appraisal District's Truth in Taxation five-year summary lists the City of Horseshoe Bay's adopted rate as 0.26775 per $100 for tax years 2026, 2025 and 2024, 0.2678 for 2023 and 0.27000 for 2022. The city's notice of its 2026 rate hearing, scheduled for September 15, proposes 0.26775 against a no-new-revenue rate of 0.25777 and a voter-approval rate of 0.27106. For Burnet County lots, Burnet CAD's 2026 table lists Burnet County General at 0.3009, Burnet County Special at 0.0532, Burnet Consolidated ISD at 0.8673 and Marble Falls ISD at 0.8805. Llano County's own notice proposes a total rate of 0.25953 for 2026, a proposed figure rather than an adopted one.The City of Lakeway's finance page states that rates in effect for fiscal year 2027 are 0.170076 per $100 of assessed value, made up of 0.115873 for maintenance and operations and 0.054203 for debt service, and the city's home page says the council voted 5-2 on September 21, 2026 to approve a 2026 tax rate of that amount, about a $29 average increase to a homeowner's tax bill. Travis County's notice for tax year 2025 gives a no-new-revenue rate of 0.343152 and a voter-approval rate of 0.375845, which are 2025 figures and not the adopted 2026 county rate. Lakeway's school district and any special district depend on the address and are found in the county's rate table. A buyer should not set Lakeway's 2025 county figures against Horseshoe Bay's 2026 county figures.
Which appraisal district and tax office appliesHorseshoe Bay's city limits fall in both counties, so the appraisal district that values a property depends on the lot. The city's tax page says that for owners in Llano County the city contracts with the Llano County Tax Assessor-Collector and the Llano Central Appraisal District determines value, and that for owners in Burnet County it contracts with the Burnet County Tax Assessor-Collector and the Burnet Central Appraisal District. Two lots in the same city can therefore have different appraisal districts, county rates and school districts. What a buyer should check: the county of the specific parcel, and the units listed on its tax statement.Lakeway is in Travis County alone, so the Travis Central Appraisal District sets values and the Travis County Tax Assessor-Collector bills and collects the city's taxes in October of each year. Taxes are due on receipt of the statement, a tax lien attaches on January 1, and penalties and interest begin on February 1. Travis County publishes a Truth in Taxation table of the current and four prior years' rates for every taxing unit overlapping the county, which is where a buyer should look up the school district and any special district.
Over-65 exemptions and tax ceilingsThe Texas Comptroller states that Tax Code Section 11.13(b) requires school districts to provide a $140,000 residence homestead exemption and Section 11.13(c) an additional $60,000 for homeowners 65 or older or disabled, and that taxing units may adopt local option exemptions of up to 20 percent of appraised value, with a minimum of $5,000. The City of Horseshoe Bay's tax page says a full-time resident may qualify for a 20 percent homestead exemption on the city tax bill. The school-tax ceiling at 65 is conditional and does not cap every tax on the property, and Burnet CAD's table carries exemption columns whose layout is hard to read, so confirm each unit's over-65 amount with the district.The Travis Central Appraisal District says an over-65 exemption is available the year a homeowner turns 65 and sets a tax ceiling on school taxes, which can increase if improvements such as a garage or pool are added. It says a county, city or junior college may also adopt a ceiling if its governing body chooses to, and that a surviving spouse who is 55 or older and keeps owning the home can continue to hold the exemptions and ceiling. Lakeway's pages do not say whether the city has adopted a ceiling, so ask the appraisal district. Exemptions reduce taxable value; they are not cash payments.
Special assessments, districts and local sales taxSome Horseshoe Bay lots carry a separate assessment. The city's tax page says lots in Summit Rock are subject to a capital-improvement assessment in lieu of impact fees, of $42,000 per lot ($30,000 if the lot was sold before January 1, 2013), payable at purchase in one sum or in installments of $2,800 for fifteen years that are added to the yearly tax bill, and it lists a separate Escondido assessment with an annual update ordinance. The city's sales and use tax rate is 8.25 percent, including 2.00 percent to the city, of which 0.50 percent reduces the local property tax rate, and it collects no local hotel occupancy tax.Lakeway's pages carry a statement about Travis County MUD 11, one of the utility districts that serve parts of the area, and utility districts and homeowners associations can add their own charges. A buyer should ask for the association's governing documents and the special-district tax rate before making an offer. The city's sales and use tax components are 6.25 percent to the State of Texas, 1.75 percent to the City of Lakeway, of which 0.50 percent reduces property taxes, and 0.25 percent to the Lake Travis Community Library District.
Lake type and flood exposureLake LBJ is a pass-through lake. LCRA states that Inks, LBJ, Marble Falls and Austin lakes have no capacity to store floodwaters, typically operate within about a foot and can rise well above normal levels during floods. Wirtz Dam creates Lake LBJ, and LCRA's flood page, dated October 3, 2026, reports that it closed floodgates at Wirtz and Starcke dams and that no floodgate operations were underway or planned at that time. Waterfront buyers should check the FEMA flood map and the lot's elevation above the lake, remembering that FEMA and local officials, not LCRA, designate floodplains.Lake Travis is the only lake in the Highland Lakes chain designed to hold back floodwaters. LCRA considers it full for water supply at 681 feet above mean sea level, and its flood pool can hold an additional 776,062 acre-feet. LCRA states that any area in the flood pool is subject to being inundated and that Lake Travis cannot prevent flooding along creeks and streams that feed the Colorado River. A Lakeway buyer should check the FEMA flood map and the lot's elevation relative to the flood pool, not just the day's lake level. Flood coverage is a separate policy, and homes in high-risk flood areas with government-backed mortgages must carry it.
Water supply and drought rulesHorseshoe Bay runs its own watering stages. The city's page records that effective July 16, 2025 the council implemented the LCRA Stage 1 watering schedule for all residents and businesses, limiting automated irrigation to two days a week, prohibiting watering on Mondays and allowing hand-held hose watering with a positive shut-off at any time. The city's utility, not LCRA, decides local restrictions for city customers, so confirm the current stage before assuming a lawn or pool can be maintained. The Texas Water Development Board's drought dashboard for a map dated October 6, 2026 shows 82.00 percent of Texas in at least moderate drought.Lake Travis is a water-supply reservoir whose level is meant to move. LCRA states that Lakes Buchanan and Travis were designed to fluctuate. On October 8, 2026 its table reported Lake Travis at 678.05 feet and said the two lakes together held about 1,908,161 acre-feet, or 96 percent; on July 1, 2026 the combined storage was 1,834,024 acre-feet, about 92 percent, and the water-supply condition under LCRA's 2020 Water Management Plan was Normal. LCRA lists the Lakeway Municipal Utility District among the customers that take water from the Highland Lakes, so household water depends on the same lakes. Low years can leave docks and ramps unusable.
Healthcare inside each cityThere is no hospital inside Horseshoe Bay. The closest facility named in its pages is Baylor Scott & White Medical Center - Marble Falls at 810 W. Highway 71, which the Centers for Medicare & Medicaid Services lists as an acute care hospital with emergency services and an overall rating of 4 as of the dataset date, and the same federal file lists Ascension Seton Highland Lakes, a critical access hospital in Burnet with an overall rating of 5. Distances and drive times depend on the route and traffic, so test the trip, and anyone with a chronic condition should check local clinic and pharmacy options and Medicare network coverage.Lakeway has Baylor Scott & White Medical Center - Lakeway at 100 Medical Parkway, which describes itself as a 106-bed, full-service hospital open 24 hours, with Magnet recognition from the American Nurses Credentialing Center and an Advanced Spine Certification from DNV. Its page lists accepted insurance carriers and cautions that listings change without notice, so anyone on Medicare or a Medicare Advantage plan should confirm that a specific plan and the specialists they use are in network. Beyond the city, the federal hospital file for Travis County lists several Austin acute-care hospitals; no drive times are quoted.
Climate and wildfireNo climate station inside Horseshoe Bay was available. Burn-ban status is set county by county and can change quickly, so it can depend on which side of a county line a lot is on. The city's home page lists Horseshoe Bay as a Dark Sky Community. Texas A&M Forest Service is the lead wildfire agency in Texas and publishes guidance on assessing a home's risk and creating an evacuation plan.For Lakeway the nearest long-record station is Austin-Bergstrom Airport, a regional indicator and not a Lakeway measurement. Its 1991-2020 normals give a July mean maximum of 96.1 degrees Fahrenheit, an August mean maximum of 97.0 and a January mean minimum of 37.7. Texas A&M Forest Service publishes guidance on understanding a property's risk, protecting a home and creating an evacuation plan, and the Lakeway pages offer no neighborhood-level wildfire summary, so ask each community for its own evacuation and defensible-space guidance.
Who lives there, and housing cost on the same surveyThe Census Bureau's 2019-2023 American Community Survey estimates Horseshoe Bay's population at 4,534 with a median age of 64.6 and 2,174 residents aged 65 and over, or 47.9 percent. It counts 3,801 housing units, of which 83.8 percent of occupied units are owner-occupied, and shows a vacancy rate of 39.5 percent, so a large share of homes are not occupied year-round. Median household income is estimated at $105,024, the median value of an owner-occupied home at $489,100 and median gross rent at $1,575.The same survey period estimates Lakeway's population at 19,130 with a median age of 50.3 and 4,664 residents aged 65 and over, or 24.4 percent. It counts 8,875 housing units, with 85.7 percent of occupied units owner-occupied and a vacancy rate of 10.3 percent. Median household income is estimated at $164,978, the median value of an owner-occupied home at $695,400, the median monthly owner cost for homes with a mortgage at $3,276 and median gross rent at $3,123. Both are five-year survey estimates with margins of error, so they are comparable with each other but lag current prices, and a lakefront or gated-neighborhood home can sit far above or below the medians.
Lifestyle and retirement-community optionsHorseshoe Bay's calendar is built around the resort. The city's Things to Do page lists a Hill Country Golfers group of 150 or more members, an 18-hole men's golf association, a group with club lessons for golfers new to the game, and pickleball, and notes that participation in the golf and some other clubs requires a Horseshoe Bay Resort Club membership. Golf in this market is therefore tied to resort membership, not just a public tee time; ask for current membership terms and dues. The Horseshoe Bay pages do not profile an age-restricted community, so if one is marketed as 55+, ask for the recorded declaration rather than marketing material.The City of Lakeway operates a swim center and an activity center with annual memberships and quarterly activity guides, runs a parks program and holds events through the year. LCRA publishes boat-dock safety rules and a Highland Lakes watershed ordinance, which a buyer should check before buying a lot that depends on lake access. The Lakeway pages identify no specific 55+ community, and the city is a drive-dependent suburb, so anyone who expects to stop driving should test daily errands and medical trips.
Airport and getting aroundAustin-Bergstrom International Airport is the Highland Lakes region's major commercial airport, and the airport's own site says it serves approximately 20 million passengers a year and more than 15 airlines. Distances from each lake town depend on the route and traffic, so no drive time is quoted. Horseshoe Bay publishes a transportation plan and a comprehensive plan to 2047 on which the city invites resident comment, and a buyer who expects to rely on local transport should read them.Lakeway is a suburban city, and its pages describe a layout in which daily errands generally involve driving. No drive time to Austin-Bergstrom is quoted, so test the route at the hours you would fly. The same airport serves both towns, so the practical difference is the length and reliability of the drive from a particular lot.

Time-sensitive details

  • The Burnet County website carried a banner on October 8, 2026 stating that a burn ban was in effect for all of Burnet County. (as of October 8, 2026; valid through November 22, 2026). Confirm before relying on it.
  • The City of Llano posted a notice that the Llano County burn ban had been lifted, as read on October 8, 2026. (as of October 8, 2026; valid through November 22, 2026). Confirm before relying on it.
  • The City of Lakeway's October 2026 calendar lists a Big Band Bash and a Floating Pumpkin Patch at the swim center. (as of October 8, 2026; valid through October 31, 2026). Confirm before relying on it.

Sources and review date

Last reviewed . Facts on this page come from the sources below; where a rule or figure can change, check the linked source before relying on it.

  1. American Community Survey 2019-2023 DP05 Demographic and Housing Estimates, Horseshoe Bay city, Texas — U.S. Census Bureau (accessed 2026-10-08)
  2. American Community Survey 2019-2023 DP04 Selected Housing Characteristics, Horseshoe Bay city, Texas — U.S. Census Bureau (accessed 2026-10-08)
  3. American Community Survey 2019-2023 DP03 Selected Economic Characteristics, Horseshoe Bay city, Texas — U.S. Census Bureau (accessed 2026-10-08)
  4. City of Horseshoe Bay, Texas - Official Website — City of Horseshoe Bay (accessed 2026-10-08)
  5. Tax Rates — City of Horseshoe Bay (accessed 2026-10-08)
  6. Notice of Public Hearing on Tax Increase, City of Horseshoe Bay (2026 tax year) — City of Horseshoe Bay (accessed 2026-10-08)
  7. Things to Do in Horseshoe Bay — City of Horseshoe Bay (accessed 2026-10-08)
  8. Stage 1 Watering Schedule — City of Horseshoe Bay (accessed 2026-10-08)
  9. Adopted Tax Rates and Exemptions, 2026 — Burnet Central Appraisal District (accessed 2026-10-08)
  10. Truth in Taxation Five Year Tax Rate Summary, 2026 — Burnet Central Appraisal District (accessed 2026-10-08)
  11. Llano Central Appraisal District — Llano Central Appraisal District (accessed 2026-10-08)
  12. Notice of Public Hearing on Tax Increase, Llano County Tax Rate FY2026 — Llano County (accessed 2026-10-08)
  13. Property Tax Exemptions — Texas Comptroller of Public Accounts (accessed 2026-10-08)
  14. Baylor Scott & White Medical Center - Marble Falls — Baylor Scott & White Health (accessed 2026-10-08)
  15. Hospital General Information, Burnet County, Texas — Centers for Medicare & Medicaid Services (accessed 2026-10-08)
  16. Burnet County, Texas - Official Website — Burnet County (accessed 2026-10-08)
  17. The Highland Lakes and Colorado River: lake levels and flood updates — Lower Colorado River Authority (accessed 2026-10-08)
  18. LCRA dams form the Highland Lakes — Lower Colorado River Authority (accessed 2026-10-08)
  19. Managing Floods in Flash Flood Alley — Lower Colorado River Authority (accessed 2026-10-08)
  20. Water Supply Operations — Lower Colorado River Authority (accessed 2026-10-08)
  21. National Flood Insurance Program — Federal Emergency Management Agency (accessed 2026-10-08)
  22. Hail damage to your home or car? What to do next. — Texas Department of Insurance (accessed 2026-10-08)
  23. Wildfire & Other Disasters — Texas A&M Forest Service (accessed 2026-10-08)
  24. Texas Water Development Board Water Data for Texas: Drought Dashboard — Texas Water Development Board (accessed 2026-10-08)
  25. American Community Survey 2019-2023 DP05 Demographic and Housing Estimates, Lakeway city, Texas — U.S. Census Bureau (accessed 2026-10-08)
  26. American Community Survey 2019-2023 DP04 Selected Housing Characteristics, Lakeway city, Texas — U.S. Census Bureau (accessed 2026-10-08)
  27. American Community Survey 2019-2023 DP03 Selected Economic Characteristics, Lakeway city, Texas — U.S. Census Bureau (accessed 2026-10-08)
  28. Taxes (City of Lakeway Finance Department) — City of Lakeway (accessed 2026-10-08)
  29. City of Lakeway, TX - Official Website — City of Lakeway (accessed 2026-10-08)
  30. Notice About 2025 Tax Rate — Travis County (accessed 2026-10-08)
  31. Truth in Taxation Summary — Travis County (accessed 2026-10-08)
  32. Homestead Exemptions — Travis Central Appraisal District (accessed 2026-10-08)
  33. Baylor Scott & White Medical Center - Lakeway — Baylor Scott & White Health (accessed 2026-10-08)
  34. Hospital General Information, Travis County, Texas — Centers for Medicare & Medicaid Services (accessed 2026-10-08)
  35. Insurance and your roof: What to know when buying a policy or replacing your roof — Texas Department of Insurance (accessed 2026-10-08)
  36. U.S. Climate Normals 1991-2020, Austin Bergstrom AP, TX (monthly) — NOAA National Centers for Environmental Information (accessed 2026-10-08)
  37. Llano County Burn Ban Lifted (News Flash) — City of Llano (accessed 2026-10-08)
  38. Austin-Bergstrom International Airport — City of Austin (accessed 2026-10-08)
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