The 2027 Social Security COLA is 3.6 percent, the Social Security Administration (SSA) announced on October 14, 2026. The cost-of-living adjustment raises monthly Social Security benefits starting in January 2027 and lifts Supplemental Security Income (SSI) payments starting December 31, 2026.
This explainer covers exactly what SSA announced, the other 2027 figures that changed along with the COLA, what a 3.6% increase looks like in dollars, and how to see your own new payment amount before it arrives.
Key takeaways
- SSA set the 2027 COLA at 3.6%, affecting nearly 72 million Social Security beneficiaries and about 7.3 million SSI recipients.
- Increased SSI payments begin December 31, 2026; the higher Social Security payments begin in January 2027.
- SSA estimates the average retired worker’s benefit rises from $2,095 to $2,170 a month.
- The maximum earnings subject to Social Security tax rise to $192,300, and the earnings test limit for people under full retirement age rises to $25,560.
- Your personal COLA notice appears in your my Social Security Message Center from late November, or by mail in December.
What SSA announced about the 2027 Social Security COLA
In its October 14, 2026 news release, SSA said Social Security and SSI benefits will rise 3.6% for 2027. According to the release, nearly 72 million Social Security beneficiaries will see the increase in January 2027, and about 7.3 million people who receive SSI will see higher payments beginning December 31, 2026. Some people receive both types of payment, so the two groups overlap.
SSA also said that, on average, retirement benefits will go up by about $75 a month. Alongside the release, the agency published its 2027 COLA fact sheet, which lists the new taxable maximum, earnings test limits, SSI payment standards, disability thresholds and estimated average benefits. Those figures are summarized in the sections below.
The release also noted that SSA is sending a simplified, one-page COLA notice that shows exact dates and dollar amounts for each person.
When the 3.6% increase reaches your payments
The timing depends on which program pays you:
- SSI recipients: SSA says the increased SSI payments begin on December 31, 2026.
- Social Security beneficiaries (retirement, survivors and disability): the COLA begins with benefits payable in January 2027.
If your payment changes for another reason in 2027, such as a change in your Medicare premium or tax withholding, the amount deposited may differ from your old benefit plus exactly 3.6%. Your COLA notice shows the specific amounts for your record.
What a 3.6% COLA means in dollars
The COLA is a percentage, so the dollar increase depends on your current benefit. Here is purely hypothetical arithmetic using the official 3.6% rate:
- If a monthly benefit were $1,000, a 3.6% increase would add $36, for a new benefit of $1,036.
- If a monthly benefit were $1,500, the increase would be $54, for a new benefit of $1,554.
- Over 12 months, a $54 monthly increase adds up to $648 before any deductions.
SSA’s fact sheet also estimates how average benefits change. These are averages across many beneficiaries, not anyone’s personal amount:
| Estimated average monthly benefit (January 2027) | Before the 3.6% COLA | After the 3.6% COLA |
|---|---|---|
| All retired workers | $2,095 | $2,170 |
| Aged couple, both receiving benefits | $3,238 | $3,355 |
| Widowed mother and two children | $3,932 | $4,074 |
| Aged widow(er) alone | $1,936 | $2,005 |
| Disabled worker, spouse and one or more children | $2,970 | $3,077 |
| All disabled workers | $1,642 | $1,701 |
The maximum benefit for a worker retiring at full retirement age rises from $4,152 a month in 2026 to $4,188 a month in 2027, according to the fact sheet.
Other 2027 Social Security figures that change
The COLA announcement also updates several amounts tied to wage growth and inflation. The table compares 2026 and 2027 figures from SSA’s fact sheet.
| Item | 2026 | 2027 |
|---|---|---|
| Maximum earnings subject to Social Security tax | $184,500 | $192,300 |
| Earnings needed for one quarter of coverage | $1,890 | $1,970 |
| Earnings test: under full retirement age (yearly) | $24,480 | $25,560 |
| Earnings test: year you reach full retirement age (yearly) | $65,160 | $67,920 |
| SSI federal payment standard, individual (monthly) | $994 | $1,029 |
| SSI federal payment standard, couple (monthly) | $1,491 | $1,544 |
| Substantial gainful activity, non-blind (monthly) | $1,690 | $1,770 |
| Substantial gainful activity, blind (monthly) | $2,830 | $2,950 |
| Trial work period threshold (monthly) | $1,210 | $1,270 |
For workers paying Social Security tax
The tax rates themselves do not change: the fact sheet lists a combined employee rate of 7.65% and a self-employed rate of 15.30% for both 2026 and 2027. What changes is the cap. In 2027, Social Security tax applies to earnings up to $192,300. The Medicare portion (1.45%) has no earnings cap, and SSA notes that an additional 0.9% Medicare tax applies to earned income above $200,000 ($250,000 for married couples filing jointly).
For people working while collecting benefits
If you are younger than full retirement age for all of 2027 and still working, the annual earnings limit rises to $25,560 ($2,130 a month). SSA’s guidance on working while receiving benefits explains that it deducts $1 in benefits for every $2 earned above the limit. In the year you reach full retirement age, the limit is $67,920 ($5,660 a month), the deduction is $1 for every $3 above it, and only earnings in the months before you reach full retirement age count. Starting with the month you reach full retirement age, there is no earnings limit.
Hypothetical example: if someone under full retirement age for all of 2027 earned $29,560, that is $4,000 above the $25,560 limit. At $1 for every $2, SSA would withhold $2,000 in benefits for the year. SSA says it recalculates your benefit at full retirement age to account for months when benefits were withheld.
For SSI and disability beneficiaries
The SSI federal payment standard rises to $1,029 a month for an individual and $1,544 for a couple. Your own SSI payment can differ from the federal standard, so check your notice. For disability beneficiaries, the substantial gainful activity amount rises to $1,770 a month (non-blind) and $2,950 (blind), and the trial work period threshold rises to $1,270 a month. For students who receive SSI, the student earned income exclusion rises to $2,500 a month, up to $10,080 a year.
How SSA calculates the COLA
The COLA is not chosen by SSA or Congress each year. SSA’s COLA information page explains the formula:
- The Bureau of Labor Statistics publishes the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) each month.
- SSA averages the CPI-W for the third quarter (July, August and September) of the current year.
- SSA compares that average with the third-quarter average from the last year a COLA was determined.
- The percentage increase, if any, becomes the COLA. If there is no increase, there is no COLA.
The law makes the CPI-W the official measure SSA uses. The purpose, SSA says, is to keep inflation from eroding the purchasing power of Social Security and SSI benefits. If you are thinking about how inflation affects your own savings, our guide to I bonds from TreasuryDirect explains another inflation-linked option.
Medicare premiums and your net 2027 payment
If you have Medicare, your 2027 premium can affect the net amount you receive, not just the COLA. SSA’s October announcement did not state 2027 Medicare premium amounts; it said information about Medicare changes for 2027 would be posted at Medicare.gov. SSA says people with Medicare will be able to see their new 2027 premium amount through their COLA notice and the my Social Security Message Center.
For the current figures and how income-related surcharges work, see our explainer on the 2026 Medicare Part B premium. SSA also points people with limited income and resources to Extra Help and the Medicare Savings Programs, which can help pay premiums and other costs.
How to check your own 2027 benefit amount
Your exact new amount is in your personal COLA notice. SSA describes these steps:
- Sign in to or create a my Social Security account at ssa.gov/myaccount. To see your notice online, SSA says you need an account by November 18, 2026, and you should choose paperless notices in your preferences.
- Open the Message Center in late November. SSA says most beneficiaries can view their COLA notice there in late November, up to three weeks before a paper copy would arrive.
- Watch your mail in December if you have not opted for paperless notices. SSA mails COLA notices in December.
- Compare the notice with your January deposit (or your December 31 SSI payment). The notice lists your gross benefit and any deductions, such as a Medicare premium.
- Update your budget. A higher payment can be a chance to add to savings; our guide on how to build an emergency fund walks through the basics.
Be cautious with unexpected calls, texts or emails about your COLA, and get your figures from your my Social Security account or official SSA mail instead. You can report suspected Social Security scams to the SSA Office of the Inspector General, and our reader safety page lists common warning signs.
If you are also planning for next year’s taxes, our explainer on the 2027 tax brackets and standard deduction covers the IRS inflation adjustments announced in November 2026.
Note: This article is general information, not financial, tax or legal advice. Rules can change, so confirm details with the official source or a qualified professional. See our Disclaimer.
Frequently asked questions
What is the 2027 Social Security COLA?
SSA announced a 3.6% cost-of-living adjustment for 2027 on October 14, 2026. It applies to Social Security benefits starting in January 2027 and to SSI payments starting December 31, 2026. SSA estimates the average retirement benefit will rise by about $75 a month.
When will I see the higher payment?
SSI recipients see the increase in the payment dated December 31, 2026. Social Security beneficiaries see it in benefits payable in January 2027. Your COLA notice lists the exact amount and date for your record.
Will my whole increase show up in my deposit?
Not necessarily. If Medicare premiums or other amounts are deducted from your benefit, your deposit reflects those deductions. SSA says the 2027 Medicare premium amount will appear in your COLA notice and Message Center, so check the notice rather than assuming the full 3.6% will be added to your deposit.
How much can I earn in 2027 without benefits being withheld?
If you are under full retirement age for all of 2027, the limit is $25,560, and SSA deducts $1 for every $2 above it. In the year you reach full retirement age, the limit is $67,920 with $1 deducted for every $3 above it, counting only months before full retirement age. There is no limit from the month you reach full retirement age.
How does SSA decide the COLA percentage?
SSA compares the average CPI-W for July through September of the current year with the same third-quarter average from the last year a COLA was determined. The percentage increase becomes the COLA. If the index does not rise, there is no COLA.
Official sources
- Social Security Announces 3.6 Percent Benefit Increase for 2027 (email bulletin) – Social Security Administration
- Social Security Announces 3.6 Percent Benefit Increase for 2027 – Social Security Administration
- 2027 Cost-of-Living Adjustment (COLA) Fact Sheet – Social Security Administration
- Cost-of-Living Adjustment (COLA) Information for 2027 – Social Security Administration
- Work For an Employer This Year – Social Security Administration
Last checked: November 6, 2026. We review this guide when the official rules change.