Social Security payments provide essential financial support for retirees and disabled people in America. Although living solely on social security can be tough, many have no other option. The average social security payments can vary according to the state, cost of living, average income, and other factors. Understanding these factors allows you to plan for a better retirement and manage your finances effectively.
Alabama
Estimated Total Annual Benefits: $1,706,991,000
Average Social Security Payment: $1,467
The state offers affordable and enjoyable retirement with its tax-friendly regime. Alabama’s cost of living index is 88.3, making it one of the most affordable states.
Alaska
Estimated Total Annual Benefits: $162,824,000
Average Social Security Payment: $1,480
Alaska has no state sales or income tax, allowing individuals to utilize their social security benefits. While the cost of living in the state is a bit higher, its tax-friendly policies help balance the expenses.
Arizona
Estimated Total Annual Benefits: $2,298,348,000
Average Social Security Payment: $1,586
Arizona is moderately tax-friendly for retirees and those living on Social Security. You don’t have to pay tax on Social Security payments, but other incomes are taxed here. The state offers a warm climate, recreational activities, and a high quality of life.
Arkansas
Estimated Total Annual Benefits: $1,005,891,000
Average Social Security Payment: $1,418
Living in Arkansas on social security payments is quite affordable. With the state’s low cost of living, an individual can cover their basic expenses easily.
California
Estimated Total Annual Benefits: $9,340,498,000
Average Social Security Payment: $1,515
California is also one of the most expensive states in the U.S., making it challenging to rely solely on social security payments. The state’s high cost of living makes it difficult to fulfil essential expenses, including housing. To live in California alone on social security payments is difficult and finding an additional source of income is necessary.
Colorado
Estimated Total Annual Benefits: $1,467,937,000
Average Social Security Payment: $1,587
Colorado has moderate tax-friendly policies and a high cost of living. Individuals receive partial tax exemption from their social security payments. To live comfortably on your social security payments in Colorado, You must follow a frugal lifestyle.
Connecticut
Estimated Total Annual Benefits: $1,193,327,000
Average Social Security Payment: $1,706
Connecticut provides a tax exemption on social security for Single filers with incomes of less than $75,000 and joint filers with incomes of less than $100,000. With the high cost of living, this tax exemption eases the financial burden for those who rely on social security payments.
Delaware
Estimated Total Annual Benefits: $387,905,000
Average Social Security Payment: $1,694
Delaware is one of the few states that doesn’t impose sales tax at the state or local level. Additionally, property taxes are also lower here compared to other states. While living expenses may be slightly higher, tax-friendly policies make them manageable.
Florida
Estimated Total Annual Benefits: $7,577,221,000
Average Social Security Payment: $1,543
Florida, known for its beautiful beaches, captivating climate, and landscape, offers a comfortable and active lifestyle for those living on social security payments. The state’s cost of living index is 103, slightly higher than the national average of 100, making it an affordable state to reside in.
Georgia
Estimated Total Annual Benefits: $2,869,160,000
Average Social Security Payment: $1,495
Georgia does not tax social security payments, but retirement income is partially taxed here. Additionally, the state’s cost of living is quite affordable compared to others, making it one of the most affordable states for comfortable living on social security payments.
Hawaii
Estimated Total Annual Benefits: $449,099,000
Average Social Security Payment: $1,566
Hawaii is one of the most expensive states in the U.S., with a cost of living index of 192, significantly higher than the national average. Living solely on social security payments in Hawaii can be quite challenging, requiring additional sources of income and strict budgeting to manage expenses.
Idaho
Estimated Total Annual Benefits: $574,812,000
Average Social Security Payment: $1,521
Idaho ranks 28th in the cost of living index, slightly below the national average at 98. The state also boasts tax-friendly policies, making it an affordable place to live on social security payments.
Illinois
Estimated Total Annual Benefits: $3,564,381,000
Average Social Security Payment: $1,569
Illinois is an affordable state for managing finances on social security payments, thanks to its low cost of living. The state also exempts these benefits from taxes. However, it has the country’s highest average property and sales tax rates, which may impact the finances of the people living on Social Security benefits.
Indiana
Estimated Total Annual Benefits: $2,189,729,000
Average Social Security Payment: $1,577
Indiana is among the most affordable states, making it favorable for those living on social security payments. The cost of living index is around 90 less than the national average of 100.
Additionally, the state has tax-friendly policies for retirees and older people, making living on social security more affordable and viable.
Iowa
Estimated Total Annual Benefits: $1,039,410,000
Average Social Security Payment: $1,554
The cost of living in Iowa is relatively low, making it a comfortable place to manage expenses on social security payments. However, tax policies are moderate here, as social security benefits are only partially exempt from taxes, which might pose a slight challenge.
Kansas
Estimated Total Annual Benefits: $910,400,000
Average Social Security Payment: $1,588
Kansas has a low cost of living and favorable tax policies, making a living on Social Security benefits easier than other states.
Kentucky
Estimated Total Annual Benefits: $1,438,656,000
Average Social Security Payment: $1,424
Kentucky’s cost of living index is around 86, below the national average. Combined with its tax-friendly policies, it is an affordable place to live on social security benefits.
Louisiana
Estimated Total Annual Benefits: $1,287,133,000
Average Social Security Payment: $1,392
Louisiana is an affordable state for living on social security payments, thanks to its low cost of living and tax-friendly policies. A person can comfortably manage their expenses in the state.
Maine
Estimated Total Annual Benefits: $521,038,000
Average Social Security Payment: $1,451
Maine has a relatively high cost of living index and social security benefits are only partially exempt from taxes, making it a costly state to live on social security payments.
Maryland
Estimated Total Annual Benefits: $1,710,224,000
Average Social Security Payment: $1,648
Maryland’s cost of living index is around 124, higher than the national average. The state’s moderate tax policies may challenge those living on social security payments.
Massachusetts
Estimated Total Annual Benefits: $2,061,173,000
Average Social Security Payment: $1,592
Living on social security benefits in Massachusetts is challenging due to its high cost of living and tax policies. With a cost of living index of 148, careful budgeting is essential to manage expenses here.
Michigan
Estimated Total Annual Benefits: $3,611,694,000
Average Social Security Payment: $1,603
Michigan has a low cost of living index and moderate tax policies, making it an affordable state to live on social security benefits.
Minnesota
Estimated Total Annual Benefits: $1,756,202,000
Average Social Security Payment: $1,622
Minnesota is a beautiful state that offers a viable option to rely on social security payments. Minnesota’s average cost of living index is 101.6, slightly above the national average of 100. This indicates that the state has manageable expenses for the people receiving social security payments.
Mississippi
Estimated Total Annual Benefits: $951,295,000
Average Social Security Payment: $1,395
The state has a low-income tax rate and favorable tax policies with a low cost of living, making it easy to manage expenses on social security payments.
Missouri
Estimated Total Annual Benefits: $1,990,464,000
Average Social Security Payment: $1,498
Missouri is known for being one of the most affordable states in the U.S., with a low cost of living and favorable tax policies for those living on social security benefits.
Montana
Estimated Total Annual Benefits: $368,099,000
Average Social Security Payment: $1,481
Montana’s cost of living index is around 102, a little higher than the national average. With the proper budgeting, key expenses, including housing, are comfortably manageable on social security benefits.
Nebraska
Estimated Total Annual Benefits: $559,398,000
Average Social Security Payment: $1,553
Nebraska’s low cost of living and tax-friendly policies make it an affordable state to live on social security payments.
Nevada
Estimated Total Annual Benefits: $872,772,000
Average Social Security Payment: $1,526
The cost of living in the state is slightly high, making it challenging for individuals to live on social security payments. However, proper budgeting and a frugal lifestyle can help manage expenses.
New Hampshire
Estimated Total Annual Benefits: $534,012,000
Average Social Security Payment: $1,659
New Hampshire has a tax-friendly policy but a slightly higher cost of living. Basic expenses are manageable with proper budgeting on social security benefits.
New Jersey
Estimated Total Annual Benefits: $2,823,697,000
Average Social Security Payment: $1,708
New Jersey offers the highest social security payment, but the cost of living is also significantly higher. This makes it challenging for the individual to cover essential expenses. Adopting a frugal lifestyle and effective budgeting can ease the financial burden.
New York
Estimated Total Annual Benefits: $5,804,433,000
Average Social Security Payment: $1,577
The vibrant state of New York is renowned for its iconic skyline, busy streets, and numerous cultural landmarks, including the Empire State Building, Times Square, and the Statue of Liberty. Despite having the highest cost of living, one can easily live comfortably on social security payments with the right budgeting and financial planning.
North Carolina
Estimated Total Annual Benefits: $3,388,657,000
Average Social Security Payment: $1,538
North Carolina has a moderate tax policy with affordable basic expenses, including housing. It makes it feasible to maintain a comfortable lifestyle on social security payments.
North Dakota
Estimated Total Annual Benefits: $211,034,000
Average Social Security Payment: $1,500
The cost of living index in North Dakota is around 94, and the state has a moderate tax policy. This makes it possible to maintain expenses on social security benefits.
Ohio
Estimated Total Annual Benefits: $3,596,930,000
Average Social Security Payment: $1,493
The state’s moderate tax policy challenges living on social security benefits. However, the low cost of living helps manage expenses.
Oklahoma
Estimated Total Annual Benefits: $1,204,224,000
Average Social Security Payment: $1,480
Oklahoma has a low cost of living index and a tax-friendly policy, making it possible to maintain a comfortable lifestyle on social security payments.
Oregon
Estimated Total Annual Benefits: $1,420,319,000
Average Social Security Payment: $1,561
Social security payments are not taxed in Oregon, Still, retirement income does not enjoy the same exemption—the state’s high cost of living index makes it difficult to manage expenses on social security benefits.
Pennsylvania
Estimated Total Annual Benefits: $4,573,216,000
Average Social Security Payment: $1,589
Pennsylvania’s slightly higher cost of living and moderate tax policies pose a burden on individuals living on social security benefits. To maintain a comfortable lifestyle, it’s essential to prioritize affordable housing and budgeting.
Rhode Island
Estimated Total Annual Benefits: $362,689,000
Average Social Security Payment: $1,572
Living on social security benefits in Rhode Island can be challenging due to its high living cost and lack of tax exemption for income, including social security. Strict budgeting or additional sources of income are essential to living comfortably in the state.
South Carolina
Estimated Total Annual Benefits: $1,886,729,000
Average Social Security Payment: $1,552
South Carolina offers affordable housing and manageable basic expenses with tax-friendly policies. Individuals can live comfortably here with proper budgeting.
South Dakota
Estimated Total Annual Benefits: $283,326,000
Average Social Security Payment: $1,497
South Dakota has tax-friendly policies and affordable living costs to manage basic expenses, enabling individuals to maintain a better lifestyle on social security benefits.
Tennessee
Estimated Total Annual Benefits: $2,257,993,000
Average Social Security Payment: $1,502
Tennessee offers a low cost of living and tax-friendly policies, providing a better lifestyle to individuals living on social security benefits.
Texas
Estimated Total Annual Benefits: $6,664,498,000
Average Social Security Payment: $1,489
Texas boast a low cost of living, but housing costs in the state can vary, posing challenges for those living on social security benefits. However, with wise budgeting and access to affordable housing, it’s possible to manage expenses effectively.
Utah
Estimated Total Annual Benefits: $693,526,000
Average Social Security Payment: $1,581
Utah’s low cost of living provides a fulfilling and affordable lifestyle. The state also has tax-friendly policies to alleviate the financial burden of retirees or disabled individuals.
Vermont
Estimated Total Annual Benefits: $245,387,000
Average Social Security Payment: $1,557
Vermont’s cost of living index is around 115, making the state slightly expensive to manage expenses. While it does not tax social security, other taxes can impact the budget.
Virginia
Estimated Total Annual Benefits: $2,538,995,000
Average Social Security Payment: $1,589
Virginia is also one of the affordable states with a favorable environment for people living on social security. Individuals can comfortably cover essential expenses, including housing, in Virginia, with social security payments.
Washington
Estimated Total Annual Benefits: $2,303,623,000
Average Social Security Payment: $1,630
The capital of the United States is known for its breathtaking beauty and diverse landscape. Within this state, individuals can access one of the highest social security payments without facing taxes on these benefits. While living costs may be slightly higher than in other states, the expenses remain manageable with smart budgeting.
West Virginia
Estimated Total Annual Benefits: $692,161,000
Average Social Security Payment: $1,455
West Virginia offers tax-friendly policies with a low cost of living, making it an affordable state to live on social security payments.
Wisconsin
Estimated Total Annual Benefits: $2,046,456,000
Average Social Security Payment: $1,587
Wisconsin’s cost of living is relatively low, making it an affordable state to live on social security benefits.
Wyoming
Estimated Total Annual Benefits: $192,021,000
Average Social Security Payment: $1,589
Wyoming is one of the affordable states offering a comfortable lifestyle on social security payments, thanks to its low cost of living and exemption of taxes on all kinds of retirement income.