Social Security increase 2026: 2.8% COLA, new taxable max, and January payment boosts

The Social Security increase for 2026 is set at 2.8%, lifting monthly benefits for nearly 71–75 million people beginning in January 2026. For a typical retired worker, that works out to roughly +$56 per month. People who receive Supplemental Security Income (SSI) will see the higher amount starting December 31, 2025 (because January 1 is a federal holiday).

What the 2.8% COLA means for your check

This year’s cost-of-living adjustment (COLA) reflects inflation measured by the CPI-W over the July–September period. While smaller than the spikes seen during the pandemic era, 2.8% is a meaningful bump that compounds on prior increases and helps offset everyday costs.

Estimated average monthly benefits in January 2026:

• All retired workers: $2,071 (up from about $2,015)

• Aged couple, both receiving benefits: $3,208 (from ~$3,120)

• Aged widow(er) alone: $1,919 (from ~$1,867)

• All disabled workers: $1,630 (from ~$1,586)

Note: These are program averages. Your exact increase is your current benefit × 1.028.

Key Social Security changes tied to 2026

Beyond the COLA, several benchmarks move on January 1, 2026:

• Taxable maximum (payroll tax cap): $184,500 (up from $176,100). Earnings above this amount are not subject to the Social Security portion of FICA.

• Maximum benefit at full retirement age: $4,152/month (up from $4,018).

• Earnings test (before full retirement age): You can earn up to $24,480/year ($2,040/month) without withholding; above that, $1 is withheld for every $2 earned.

• Earnings test (year you reach FRA): Limit rises to $65,160/year ($5,430/month), with $1 withheld for every $3 earned—applies only to months before hitting FRA.

• SSI federal payment standard: $994/month for an individual; $1,491/month for an eligible couple.

• Disability program thresholds (SGA): $1,690/month (non-blind) and $2,830/month (blind). Trial Work Period rises to $1,210/month.

Payment timing: when you’ll see the increase

• SSI: First boosted payment arrives December 31, 2025 (covering January).

• Retirement/Survivor/Disability benefits: New amounts begin with January 2026 payments, which follow the usual schedule—paid on the 2nd, 3rd, or 4th Wednesday of the month based on your birthdate (1–10, 11–20, 21–31 respectively). If you were on the old “third of the month” schedule (for certain beneficiaries), you’ll see the higher amount on that cycle.

Why the Social Security increase is 2.8%

The COLA formula compares the CPI-W from the third quarter of 2025 to the third quarter of 2024. Inflation eased from earlier peaks but remained positive—especially in services—producing a 2.8% adjustment. COLA is automatic and not subject to a separate vote; it’s designed to help your buying power keep pace with prices, though individual experiences vary depending on costs like housing, utilities, medical care, and insurance.

Quick reference: 2026 Social Security & SSI changes

What to do next

• Check your new amount. Your my Social Security account and mailed COLA notice will show your updated 2026 payment.

• Review Medicare deductions. If your Part B premium changes for 2026, it’s typically deducted from your Social Security payment; your net deposit may differ from the gross COLA.

• Update withholding if needed. If you owe taxes on benefits, consider adjusting withholding so the larger 2026 benefit doesn’t create a surprise bill.

• Working while claiming? Keep an eye on the earnings test limits above to avoid unintended withholdings before you reach full retirement age.

The Social Security increase in 2026 is 2.8%, with average checks rising by about $56 and related program thresholds stepping higher. Look for SSI’s boost on Dec. 31, 2025, and new Social Security amounts with January 2026 payments.