What to Expect From Social Security's 2026 Payment Increase
Social Security payments will rise in 2026 based on inflation measured in 2025
Every year, Social Security adjusts payments to account for inflation. This yearly adjustment is called a Cost of Living Adjustment (COLA). The amount of the 2026 increase depends on how much prices rose during the 12 months ending in September 2025. The Social Security Administration announces the exact percentage in October 2025, and the higher payments begin in January 2026.
You do not need to do anything to receive the increase. If you are already getting Social Security, Supplemental Security Income (SSI), or Survivor Benefits, the higher amount will appear in your January 2026 payment automatically. The increase applies to your regular monthly payment, and it also increases the maximum benefit amounts for new people who start receiving benefits that year.
The size of the increase varies year to year. In recent years, COLA has ranged from less than 1% to over 8%, depending on inflation. The 2026 increase will be whatever inflation was in 2025 — not higher, not lower.
Key Takeaways
- The 2026 COLA is based on inflation from October 2024 through September 2025 and will be announced in October 2025.
- The increase takes effect automatically in January 2026 for all people receiving Social Security, SSI, or Survivor Benefits.
- You cannot predict the exact percentage now because it depends on inflation data that has not yet been collected.
- The COLA increase affects your regular monthly payment, any family benefits you receive, and the maximum benefit amounts for new beneficiaries.
How the COLA is calculated and announced
The Social Security Administration uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to measure inflation. This index tracks the cost of food, housing, transportation, medical care, and other goods and services that people buy. The SSA compares the average CPI-W for July, August, and September 2025 to the average for the same three months in 2024. The percentage difference is the 2026 COLA.
The announcement happens on the second Tuesday of October each year. In October 2025, the SSA will publish the exact percentage increase on its website and in press releases. Major news outlets typically report the number the same day. You can also call Social Security at 1-800-772-1213 or visit ssa.gov to find the announcement once it is released.
The increase is the same for everyone — whether you receive retirement benefits, disability benefits, or survivor benefits. A person receiving $1,500 per month and a person receiving $3,000 per month both receive the same percentage increase, so the dollar amount of the raise is larger for people with higher benefits.
What changes in your payment starting January 2026
Your regular monthly benefit amount will increase by the COLA percentage. If you also receive a spouse benefit, parent benefit, or child benefit based on your record, those amounts increase by the same percentage. If you are receiving Supplemental Security Income (SSI), your federal payment amount increases, though some states add their own SSI supplement and may adjust that separately.
The increase also affects the Primary Insurance Amount (PIA), which is the base amount used to calculate new benefits. This means anyone who starts receiving Social Security in 2026 will receive a higher starting benefit than someone who started in 2025, even if they have the same work history. The same applies to the maximum family benefit — the total amount that can be paid to all family members on one person's record.
If you are still working and your earnings are high enough to trigger the earnings test (which reduces benefits for people under full retirement age who work), the earnings limit also increases with COLA. In 2026, you can earn more before benefits are reduced compared to 2025.
How the COLA affects your taxes and other benefits
A higher Social Security payment may change how much of your benefit is subject to federal income tax. Social Security uses a formula based on your "combined income" — your adjusted gross income plus half your Social Security benefit plus any tax-exempt interest. If your combined income crosses certain thresholds, up to 50% or 85% of your benefit becomes taxable. A COLA increase can push you over a threshold, meaning more of your benefit becomes taxable in 2026.
The COLA may also affect your Medicare premiums. If you are on Original Medicare (Parts A and B), your Part B premium is usually deducted from your Social Security payment. When Social Security increases, your premium may increase as well, though federal law protects most beneficiaries from premium increases that exceed their COLA raise. If you are on a Medicare Advantage plan or pay for Part D prescription drug coverage separately, those premiums may change independently of your Social Security increase.
If you receive Medicaid or other means-tested benefits, a higher Social Security payment could affect your may be able to access or the amount you receive. Some states have resource limits or income limits for Medicaid, and an increase in Social Security might push you over the limit. Contact your state Medicaid office or your local Area Agency on Aging if you are concerned about how the increase might affect other benefits you receive.
Planning for the 2026 increase
You do not need to take action to receive the increase, but you may want to review your budget once the October 2025 announcement is made. If the COLA is significant, you might have more money available for expenses or savings. If the COLA is small, you may need to adjust your spending plans for 2026.
If you are still working and close to the earnings limit, the higher limit in 2026 may give you more room to earn without triggering a benefit reduction. If you are considering when to claim Social Security, remember that the COLA increase applies to whatever age you claim — claiming later means a higher starting benefit that also gets the annual COLA increase.
Keep your contact information current with Social Security so you receive any notices about changes to your benefit. You can update your address, phone number, and email through your my Social Security account at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office.
Frequently Asked Questions
Can I find out the 2026 COLA before October 2025?
No. The COLA is based on inflation data from July through September 2025, which will not be complete until October. Some websites and financial advisors publish estimates based on inflation trends, but these are guesses, not official figures. The only official announcement comes from Social Security in October 2025.
Will the 2026 COLA be higher or lower than 2025?
That depends on inflation in 2025. If prices rise faster than they did in 2024, the COLA will be higher. If prices rise slower, the COLA will be lower. You can watch inflation reports from the Bureau of Labor Statistics throughout 2025 to get a sense of the trend, but the final number will not be known until October.
Does the COLA increase apply to people who have not started receiving benefits yet?
The COLA does not change the benefit amount you earned through your work record. However, the maximum benefit amounts and the formulas used to calculate new benefits increase with COLA. If you claim Social Security in 2026, your benefit will be calculated using the 2026 benefit formula, which is higher than the 2025 formula.
What if I disagree with how the COLA was calculated?
The COLA is set by law and is based on the Consumer Price Index published by the Bureau of Labor Statistics. Social Security does not have discretion to change it. If you believe there is an error in how your specific benefit was increased, you can contact Social Security to review your account, but you cannot dispute the COLA percentage itself.
Will my Medicare premium increase by the same amount as my Social Security increase?
Not necessarily. Medicare Part B premiums are set separately and may increase more or less than your COLA. However, federal law protects most beneficiaries from premium increases that exceed their COLA raise — meaning your net benefit increase (after premiums) will not be negative. Some beneficiaries are not protected by this rule, so check your specific situation with Medicare.