Social Security in Texas: Everything You Need to Know

As one of a handful of states with no state income tax, Texas is one of the more financially attractive places to reside for people who are receiving Social Security benefits. Nearly 4.7 million Texans, including almost 3.3 million retired workers plus spouses and other people, got payments from Social Security's primary program, Old Age, Survivors and Disabilities Insurance (OASDI) , during 2022. These beneficiaries collected nearly $83.2 billion, mostly to help people pay for retirement, but also to assist survivors and disabled persons. Texans with questions about Social Security or who need assistance with getting a new number, replacing a card or other Social Security-related business can get help from any of the several dozen local field offices in the state.

Get insight and guidance about important Social Security concerns such as choosing them to start claiming benefits talking to a financial advisor .

Texas and Taxes

About 40% of Social Security recipients across the country pay federal income taxes on all or part of their Social Security benefits, according to the Social Security Administration . In 12 states, some or all Social Security benefits are also subject to state income taxes . As one of nine states with no income tax , Texas levies no taxes on Social Security income, or any other source of retirement income including retirement account withdrawals and pensions.

The lack of a state income tax is balanced to some extent by other taxes levied on Texas retirees. These include a higher-than-normal sales tax that averages over 8% including state and local portions, and a property tax averaging 1.73% that is also more than retirees encounter in most states.

Texas Social Security Payments

The Texas economy gets a sizable bump from Social Security benefit payments. The total paid out to Texas from the primary benefit program, OASDI, came to almost $83.2 billion in 2022, according to Social Security's annual report . That included about $62.7 billion in retirement benefits, plus $11.2 billion to survivors and $92.9 billion in disability payments.

The benefit checks went out to a total of almost 4.6 million Texans. This includes close to 3.3 million retired workers, 183,344 spouses and 49,276 children eligible to receive retirement benefits. Survivors' benefits went to 314,843 Texas widows or widowers and parents as well as another 163,638 children. Disability payments were paid to 495,459 disabled workers, along with 7,191 spouses and 85,855 children.

Social Security's smaller Supplemental Security Income (SSI) program, which provides support to elderly, blind or disabled low-income people, benefited 582,001 Texans in 2022. This includes 98,977 aged, 6,411 blind and 476,613 disabled Texans. Total payments made to Texas recipients under SSI came to more than $4.5 billion. That breaks down into $498 million for aged recipients, almost $51 million for blind recipients and nearly $4 billion for disabled recipients.

Social Security Contacts

The Dallas regional Social Security office serves an area that includes not only Texas but also Arkansas, Louisiana, New Mexico, Oklahoma, and the Navajo Nation extending over parts of Arizona and Utah. The state capital of Austin is where Social Security opened its first local field office in 1936, and today there are 66 field offices in the state as well as three smaller resident offices.

There are 254 Texas counties, so most don't have a local Social Security office. However, questions about Social Security can get answers at any of the field and resident offices. The field offices can also help with nearly any Social Security related task, including issuing new Social Security numbers, getting help estimating benefits and applying for benefits. The resident offices, which are typically located in more remote areas, provide a smaller set of services.

Texans can also make use of Social Security's online services, including an office locator that identifies and provides address and other contact information for the nearest office based on ZIP code. The online services available at SSA.gov include applying for most types of benefits, estimating future benefits and reviewing work history. Finally, Social Security's toll-free number, 800-772-1213 is another source for help from the agency.

For help navigating Social Security benefits and beyond, you can get matched with a financial advisor .

Bottom Line

Millions of Texans receive tens of billions of dollars in benefits from Social Security every year in the form of support for retirees, spouses, children, disabled and blind people and low-income citizens. Benefits go further in Texas than in many states because the state does not tax Social Security payments. Social Security operates a widely dispersed network of local offices that can help Texas residents with questions about the benefit program, as well as assisting them with applying for benefits, replacing lost cards and similar tasks.

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