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How do zip codes affect social security benefits?

Social security benefits are not impacted by geographic location but other federal benefits are. We took a look at these programs and how benefits vary.

Social security benefits are not impacted by geographic location but other federal benefits are. We took a look at these programs and how benefits vary.

Social security benefits are calculated the same nationally. In each state workers making under a certain amount pay part of their salary in social security tax which they then receive as a part of their total benefit upon retirement.

However, some states do charge taxes on the benefits; the rate and the exemptions available vary by the state. Survivor and railroad benefits are subject to the same rules as those paid to retirees.

Which states apply taxes to social security benefits?

  • Colorado
  • Connecticut
  • Kansas
  • Minnesota
  • Missouri
  • Montana
  • Nebraska
  • New Mexico
  • Rhode Island
  • North Dakota
  • Vermont
  • Utah
  • West Virginia.

Supplemental Security Benefits

Unlike social security benefits, the calculation made for supplemental security income (SSI) is based on the state in which one lives. SSI is a need-based welfare program and is distributed to low-income individuals to help them cover the costs to cover basic needs like housing and food.

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Some states offer higher SSI benefits to those in need. The total benefit is comprised of state and federal benefits. However, there are four states and one US territory that do not supplement the federal payment.

What states do not supplement federal SSI benefits?

  • Arizona
  • Mississippi
  • North Dakora
  • Northern Mariana Islands
  • West Virginia

The Social Security Administration assists thirteen states in the distribution of SSI benefits. Those with questions should contact the SSA directly.

Which states rely on the Social Security Adminstration to distribute SSi benefits?

  • California
  • Delaware
  • District of Columbia
  • Hawaii
  • Iowa
  • Michigan
  • Montana
  • Nevada
  • New Jersey
  • Pennsylvania
  • Rhode Island
  • Vermont

The remaining states distribute the federal and state payments themselves. Should beneficiaries have questions they should contact the state office directly.

Which states distribute SSI benefits themselves?

  • Alabama
  • Alaska
  • Arkansas
  • Colorado
  • Connecticut
  • Florida
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Minnesota
  • Missouri
  • Mississipi
  • Nebraska
  • New Hampshire
  • New Mexico
  • New York
  • North Carolina
  • Ohio
  • Oklahoma
  • Oregon
  • South Carolina
  • South Dakota
  • Tennesee
  • Texas
  • Utah
  • Virginia
  • Washington
  • Wisconsin
  • Wyoming

How many SSI benefits were made in October 2021?

In October, over 7.7 million people received SSI benefits. The average federal benefit was $571.24 and $145 for states.

States with the highest benefits include California ($655), Washington DC ($620), Pennsylvania ($601), Maryland ($597), and Michigan ($594). Those with the lowest benefits include North Dakota ($534), Montana ($541), South Dakota ($546), New Hampshire ($547), and Alaska ($547).

California (1,151,201), Texas (611,276), New York (586,229), Florida (561,604), Pennsylvania (337,228) had the highest number of SSI beneficiaries.

 Can your Medicare coverage be impacted by a zip code?

Yes. While the standard Part A and B premiums and deductable apply to members regardless of where they live, Part C and D prices vary. Part C or Medicare Advantage Plans provide dental, hearing, vision, and other services to seniors, while Part D plans are designed to keep the price of prescription drugs down for members. These plans are designed by health care provides operating in those areas and thus the prices are rather wide-ranging.

This year the price of the Part B premium which is applied to almost all seniors who receive Medicare has increased from $148 to $171. This is one of the largest increases seen in years.


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