2027 Social Security changes
Social Security and SSI benefits rise 3.6% in 2027, the largest increase since 2023. Social Security announced the change on October 14, 2026, along with a higher earnings limit and a higher cap on earnings that are taxed.
- Cost-of-living adjustment3.6%Starts with January 2027 payments2026: 2.8%
- Average retired-worker check$2,170/moBefore the COLA: $2,095
- Earnings taxed for Social Security$192,300The taxable maximum2026: $184,500
- Earnings limit before full retirement age$25,560/yr2026: $24,480
- Earnings limit the year you reach full retirement age$67,920/yr2026: $65,160
- Maximum benefit at full retirement age$4,188/mo2026: $4,152
When the higher payments arrive
- Social Security and SSDI: the 3.6% increase starts with benefits payable in January 2027, which is about 72 million people.
- SSI: the increase starts with the payment on December 31, 2026, because January 1 falls on a holiday. That covers about 7.3 million people.
- Your notice: COLA notices appear in the Message Center of my Social Security accounts in late November 2026 for accounts created by November 18, 2026. Everyone else gets one by mail in December.
Average checks before and after the increase
Social Security’s estimates of average monthly benefits payable in January 2027.
| Who gets it | Before 3.6% COLA | After 3.6% COLA | Increase |
|---|---|---|---|
| All retired workers | $2,095 | $2,170 | +$75 |
| Aged couple, both receiving benefits | $3,238 | $3,355 | +$117 |
| Widowed mother and two children | $3,932 | $4,074 | +$142 |
| Aged widow(er) alone | $1,936 | $2,005 | +$69 |
| Disabled worker, spouse and one or more children | $2,970 | $3,077 | +$107 |
| All disabled workers | $1,642 | $1,701 | +$59 |
Show as a table
| Year paid | COLA |
|---|---|
| 2018 | 2.0% |
| 2019 | 2.8% |
| 2020 | 1.6% |
| 2021 | 1.3% |
| 2022 | 5.9% |
| 2023 | 8.7% |
| 2024 | 3.2% |
| 2025 | 2.5% |
| 2026 | 2.8% |
| 2027 | 3.6% |
Payroll tax and the taxable maximum
The Social Security part of payroll tax applies only to earnings up to the taxable maximum, which rises to $192,300 in 2027. Earnings above it are not taxed for Social Security, and they don’t raise your future benefit. The Medicare part has no cap.
| Item | 2026 | 2027 | Change |
|---|---|---|---|
| Taxable maximum (Social Security only) | $184,500 | $192,300 | +$7,800 (4.2%) |
| Employee rate, Social Security + Medicare6.2% Social Security, 1.45% Medicare | 7.7% | 7.7% | No change |
| Self-employed rate | 15.3% | 15.3% | No change |
| Most an employee pays for Social Security | $11,439.00 | $11,922.60 | +$483.60 (4.2%) |
| Most a self-employed person pays for Social Security | $22,878.00 | $23,845.20 | +$967.20 (4.2%) |
| Quarter of coverage (one work credit)Up to four credits a year | $1,890 | $1,970 | +$80 (4.2%) |
High earners also pay an extra 0.9% Medicare tax on earnings above $200,000, or $250,000 for married couples filing jointly. Those thresholds don’t change with inflation.
Working while you collect: the earnings test
If you take Social Security before full retirement age and keep working, part of your benefit is held back once your earnings pass a limit. Full retirement age is 67 for anyone born in 1960 or later.
| Item | 2026 | 2027 | Change |
|---|---|---|---|
| Under full retirement age all year$1 held back for every $2 over the limit | $24,480/yr | $25,560/yr | +$1,080 (4.4%) |
| Same limit, by the month | $2,040/mo | $2,130/mo | +$90 (4.4%) |
| Year you reach full retirement age$1 for every $3 over, counting earnings before that month | $65,160/yr | $67,920/yr | +$2,760 (4.2%) |
| Same limit, by the month | $5,430/mo | $5,660/mo | +$230 (4.2%) |
| From the month you reach full retirement age | No limit | No limit |
Common questions
When does the 2027 Social Security increase start?
The 3.6% increase starts with the benefits paid in January 2027. People who get SSI see it a little earlier, in the payment that arrives on December 31, 2026.
How much will my Social Security check go up in 2027?
About 3.6% of your current benefit before deductions. Social Security estimates the average retired worker’s check rises from $2,095 to $2,170 a month, an increase of $75. Your exact amount is in the COLA notice Social Security sends in late November and December.
What is the most Social Security tax I can pay in 2027?
Employees pay 6.2% on wages up to $192,300, so the most an employee pays is $11,922.60, up from $11,439.00 in 2026. Self-employed people pay both halves, 12.4%, for a maximum of $23,845.20. The 1.45% Medicare tax has no cap.
How much can I earn in 2027 while collecting Social Security?
If you are under full retirement age all year, Social Security holds back $1 of benefits for every $2 you earn over $25,560. In the year you reach full retirement age the limit is $67,920 and $1 is held back for every $3 over it, counting only earnings before the month you reach that age. From that month on there is no limit.
Does the 3.6% COLA apply to SSDI and SSI?
Yes. Social Security Disability Insurance and Supplemental Security Income both rise 3.6%. SSDI increases with January 2027 payments; SSI increases with the payment dated December 31, 2026.
Will Medicare take part of my raise?
If your Medicare Part B premium is deducted from your Social Security payment, a higher 2027 premium will take part of the increase. Medicare usually announces the new Part B premium in late October or early November, and your COLA notice shows the amount after deductions.
Sources
- 2027 Cost-of-Living Adjustment (COLA) Fact Sheet, Social Security Administration, Oct 14, 2026
- Cost-of-Living Adjustment information for 2027, Social Security Administration, Oct 14, 2026
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