2026 COLA Brings 2.8% U.S. Social Security Increase
Ian C. Langtree - Writer/Editor for Disabled World (DW)
Published: 2025/10/24 - Updated: 2025/10/25
Publication Type: Announcement
Category Topic: U.S. Social Security - Academic Publications
Page Content: Synopsis - Introduction - Main - Insights, Updates
Synopsis: This official announcement from the U.S. Social Security Administration details the 2.8 percent cost-of-living adjustment (COLA) that will benefit 75 million Americans beginning in 2026, representing an average monthly increase of $56 for retirement benefits. The information proves particularly valuable for retirees, people with disabilities, and survivors who depend on these payments to maintain their purchasing power against inflation, as the adjustment ensures fixed incomes keep pace with rising costs. The announcement also outlines practical details including the increased taxable earnings maximum of $184,500, the timeline for notification letters arriving in December, and the option to access COLA notices digitally through my Social Security accounts—a feature especially helpful for those with mobility limitations or visual impairments who may find online access more convenient than managing paper correspondence - Disabled World (DW).
Introduction
The U.S. Social Security Administration (SSA) announced today that Social Security benefits, including Old-Age, Survivors, and Disability Insurance (OASDI), and Supplemental Security Income (SSI) payments for 75 million Americans will increase 2.8 percent in 2026. On average, Social Security retirement benefits will increase by about $56 per month starting in January.
Main Content
Over the last decade the cost-of-living adjustment (COLA) increase has averaged about 3.1 percent. The COLA was 2.5 percent in 2025.
Nearly 71 million Social Security beneficiaries will see a 2.8 percent COLA beginning in January 2026. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2025.
Note: Some people receive both Social Security benefits and SSI.
"Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today's economic realities and continue to provide a foundation of security," said Social Security Administration Commissioner Frank J. Bisignano. "The cost-of-living adjustment is a vital part of how Social Security delivers on its mission."
Other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) is slated to increase to $184,500 from $176,100.
2026 U.S. Social Security Changes
Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2024 through the third quarter of 2025, Social Security beneficiaries and Supplemental Security Income (SSI) recipients will receive a 2.8 percent COLA for 2026. Other important 2026 Social Security information is as follows:
| Tax Rate | 2025 | 2026 |
|---|---|---|
| Employee | 7.65% | 7.65% |
| Self-Employed | 15.30% | 15.30% |
NOTE: The 7.65 percent tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.2 percent on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45 percent on all earnings. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent.
| 2025 | 2026 | |
|---|---|---|
| Maximum Taxable Earnings | ||
| Social Security (OASDI only) | $176,100 | $184,500 |
| Medicare (HI only) | No Limit | |
| Quarter of Coverage | ||
| $1,810 | $1,890 | |
| Retirement Earnings Test Exempt Amounts | ||
| Under full retirement age | $23,400/yr. ($1,950/mo.) |
$24,480/yr. ($2,040/mo.) |
| NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. | ||
| The year an individual reaches full retirement age | $62,160/yr. ($5,180/mo.) |
$65,160/yr. ($5,430/mo.) |
| NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit. | ||
| Beginning the month an individual attains full retirement age | None | |
| 2025 | 2026 | |
|---|---|---|
| Social Security Disability Thresholds | ||
| Substantial Gainful Activity (SGA) | ||
| Non-Blind | $1,620/mo. | $1,690/mo. |
| Blind | $2,700/mo. | $2,830/mo. |
| Trial Work Period (TWP) | $1,160/mo. | $1,210/mo. |
| Maximum Social Security Benefit: Worker Retiring at Full Retirement Age | ||
| $4,018/mo. | $4,152/mo. | |
| SSI Federal Payment Standard | ||
| Individual | $ 967/mo. | $ 994/mo. |
| Couple | $1,450/mo. | $1,491/mo. |
| SSI Resource Limits | ||
| Individual | $2,000 | $2,000 |
| Couple | $3,000 | $3,000 |
| SSI Student Exclusion | ||
| Monthly limit | $2,350 | $2,410 |
| Annual limit | $9,460 | $9,730 |
| Estimated Average Monthly Social Security Benefits Payable in January 2026 | ||
| Before 2.8% COLA | After 2.8% COLA | |
| All Retired Workers | $2,015 | $2,071 |
| Aged Couple, Both Receiving Benefits | $3,120 | $3,208 |
| Widowed Mother and Two Children | $3,792 | $3,898 |
| Aged Widow(er) Alone | $1,867 | $1,919 |
| Disabled Worker, Spouse and One or More Children | $2,857 | $2,937 |
| All Disabled Workers | $1,586 | $1,630 |
Further Information
Social Security begins notifying people about their new benefit amount by mail starting in early December 2025.
Similar to last year, Social Security beneficiaries will receive a simplified, one-page COLA notice, which uses plain and personalized language, and provides exact dates and dollar amounts of an individual's new benefit amount and any deductions.
Individuals who have my Social Security accounts can view their COLA notices online, which is secure, easy, and faster than receiving a letter in the mail. Account holders can set up text or email alerts when they receive a new message, such as their COLA notice.
To receive a COLA notice online, individuals will need to create or sign in to their personal my Social Security account and opt out of paper notices by November 19, 2025. Go Digital! Create an account today at www.ssa.gov/myaccount/ An online my Social Security account also gives individuals access to request a replacement Social Security card, view their claim status and benefits, and view their SSA-1099.
Information about Medicare changes for 2026 will be available at www.medicare.gov For Medicare enrollees, the 2026 premium amount will be available via my Social Security Message Center starting in late November. Individuals who have not opted to receive messages online will receive their COLA notice by mail in December.
The Social Security Act provides for how the COLA is calculated. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as determined by the Department of Labor's Bureau of Labor Statistics.
For additional information, visit www.ssa.gov/cola/
Insights, Analysis, and Developments
Editorial Note: While the 2.8 percent increase slightly exceeds last year's 2.5 percent adjustment, it falls below the decade's average of 3.1 percent, raising questions about whether the CPI-W formula adequately captures the actual cost increases faced by older Americans, particularly in healthcare and housing. The SSA's shift toward digital notifications and simplified one-page notices represents welcome progress in accessibility and transparency, yet the agency must ensure that vulnerable populations without internet access or digital literacy aren't left behind in this modernization push. As Commissioner Bisignano emphasizes Social Security as "a promise kept," the real test lies not just in annual adjustments but in the program's long-term solvency and its ability to provide genuine economic security for future generations - Disabled World (DW).
Author Credentials: Ian is the founder and Editor-in-Chief of Disabled World, a leading resource for news and information on disability issues. With a global perspective shaped by years of travel and lived experience, Ian is a committed proponent of the Social Model of Disability-a transformative framework developed by disabled activists in the 1970s that emphasizes dismantling societal barriers rather than focusing solely on individual impairments. His work reflects a deep commitment to disability rights, accessibility, and social inclusion. To learn more about Ian's background, expertise, and accomplishments, visit his full biography.