Social Security 2026 COLA Increase: 2.8% boost starts in January—what changes for your check

The Social Security COLA for 2026 is 2.8%, raising payments for roughly 71 million beneficiaries beginning with January 2026 deposits. SSI recipients see the adjustment one cycle earlier, with the higher rate reflected on December 31, 2025.

How the Social Security 2026 COLA was set

The annual cost-of-living adjustment is tied to inflation readings from the CPI-W for July–September 2025 versus the same months a year earlier. The result—+2.8%—lands between the modest 2025 bump (2.5%) and the larger increases earlier in this inflation cycle, signaling price pressures that remain present but cooler than in 2022–2023.

Key takeaways

• Start dates: SSI checks reflect the increase on Dec. 31, 2025; Social Security benefits adjust with January 2026 payments.

• Average retiree bump: About +$56/month, lifting a typical retired worker’s benefit from roughly $2,015 → $2,071.

• Who’s affected: Retirement, survivors, and disability beneficiaries, plus SSI recipients (some people receive both).

What your 2026 COLA means in dollars

Use this quick chart to estimate your new gross benefit (before deductions like Medicare):

Formula: current amount × 1.028 (rounded). Your net deposit may differ once Medicare premiums and any withholding are applied.

Social Security changes tied to the 2026 COLA

Beyond the headline percentage, several program numbers reset for the new year:

• Taxable wage cap (OASDI): $184,500 in 2026 (up from $176,100). Earnings above that aren’t subject to Social Security payroll tax.

• Payroll tax rates: Unchanged—6.2% employee + 6.2% employer for Social Security, 1.45% each for Medicare (additional 0.9% Medicare surtax applies above certain incomes).

• Earnings test limits (if working while on benefits):

  • Under full retirement age all year: $24,480; $1 withheld for every $2 over the limit.

  • Reaching full retirement age in 2026: $65,160; $1 withheld for every $3 over the limit until the month you hit FRA.

• Notices: Personalized COLA letters go out in early December 2025; you can see yours sooner in your my Social Security account.

Medicare and your net deposit

Medicare Part B premiums for 2026 are finalized separately. If your Part B (and any Part D/IRMAA surcharges) rise, your net Social Security deposit may increase by less than 2.8%. Check your December notice for the line-by-line deductions that will apply to your January payment.

How to confirm your new amount

1. Log in to my Social Security in December to view your updated 2026 benefit notice.

2. Review deductions (Medicare premiums, tax withholding, voluntary allotments).

3. Update direct deposit details promptly if you’ve changed banks.

4. Adjust your budget using the gross and net figures, not just the 2.8% headline.

Why the 2026 Social Security COLA matters—and what it won’t do

The COLA is designed to maintain purchasing power, not to create a raise beyond inflation. In practice, households whose costs are concentrated in categories rising faster than the CPI-W—like certain medical or housing expenses—may still feel squeezed. Treat the new amount as a catch-up to recent prices, then revisit your 2026 plan for premiums, prescriptions, utilities, and groceries.

Fast answers: Social Security 2026 COLA increase

• What is the 2026 COLA? 2.8%.

• When does it start? SSI: Dec. 31, 2025. Social Security: January 2026 pay dates.

• How much more will I get? Roughly $56 more per month for an average retired worker; use the table to estimate your amount.

• Did the wage cap change? Yes, to $184,500.

• Do I need to apply? No—COLA is automatic. You’ll receive a notice in December.

The Social Security 2026 COLA delivers a 2.8% adjustment that modestly lifts monthly checks while key thresholds—like the $184,500 wage cap and earnings-test limits—reset for the new year. Verify your personalized numbers in December, then budget for January with your net deposit in mind.