SSA announced a 3.6% cost-of-living adjustment for 2027, the biggest increase since 2023's 8.7%. It lifts benefits for 76 million Americans, resets the earnings limits, and moves the maximum amount of earnings subject to Social Security tax to $192,300.
This guide lists the official 2027 figures, shows what the average retiree, couple and disabled worker will receive, and explains with a worked example when benefits are taxable. Medicare premiums for 2027 have not been announced yet; see our Part B premium guide for where that stands.
| Beneficiary group | Before 3.6% COLA | After 3.6% COLA |
|---|---|---|
| All retired workers | $2,095 | $2,170 |
| Aged couple, both receiving benefits | $3,238 | $3,355 |
| Aged widow(er) alone | $1,936 | $2,005 |
| All disabled workers | $1,642 | $1,701 |
These are SSA's estimated average monthly benefits payable in January 2027. The 3.6% COLA begins with benefits payable to nearly 72 million Social Security beneficiaries in January 2027, and increased payments to about 7.3 million SSI recipients begin on December 31, 2026. It is based on the increase in the CPI-W from the third quarter of 2025 through the third quarter of 2026. Social Security COLA notices will be available online to most beneficiaries in late November 2026.
| Effective | COLA |
|---|---|
| January 2023 | 8.7% |
| January 2024 | 3.2% |
| January 2025 | 2.5% |
| January 2026 | 2.8% |
| January 2027 | 3.6% |
The COLA protects benefits from inflation. If there is no increase in the CPI-W, there can be no COLA.
| Item | 2026 | 2027 |
|---|---|---|
| Maximum taxable earnings (Social Security tax) | $184,500 | $192,300 |
| Quarter of coverage | $1,890 | $1,970 |
| Earnings limit, under full retirement age | $24,480 a year | $25,560 a year |
| Earnings limit, year you reach full retirement age | $65,160 a year | $67,920 a year |
| Maximum benefit at full retirement age | $4,152 a month | $4,188 a month |
| SSI federal payment, individual | $994 a month | $1,029 a month |
| Disability substantial gainful activity (non-blind) | $1,690 a month | $1,770 a month |
One dollar in benefits is withheld for every $2 earned above the lower limit, and for every $3 earned above the higher limit in the year you reach full retirement age. The Social Security tax rate stays at 6.2% for employees on earnings up to the taxable maximum, plus 1.45% Medicare on all earnings (7.65% combined; 15.30% for the self-employed). At 6.2%, the maximum Social Security tax for an employee rises from $11,439.00 on $184,500 to $11,922.60 on $192,300, an increase of $483.60.
Benefits are taxable only if your modified adjusted gross income plus one half of your benefits is more than the base amount for your filing status: $25,000 for single filers, head of household and qualifying surviving spouse (and for married filing separately if you lived apart from your spouse all year), $32,000 for married filing jointly, and $0 if you are married filing separately and lived with your spouse at any time during the year. Generally up to 50% of benefits are taxable; up to 85% can be taxable if one-half of your benefits plus all your other income is more than $34,000 ($44,000 for joint filers), or if you are married filing separately and lived with your spouse at any time during the year.
| Case (single, after the 3.6% COLA) | Annual benefits | Half of benefits | Other income | Half + other income | Over the $25,000 base? |
|---|---|---|---|---|---|
| Average retired worker, $5,000 other income | $26,040 | $13,020 | $5,000 | $18,020 | No: benefits not taxable |
| Average retired worker, $15,000 other income | $26,040 | $13,020 | $15,000 | $28,020 | Yes: some benefits may be taxable (up to 50%) |
For an aged couple receiving the average $3,355 a month ($40,260 a year), half is $20,130; with $15,000 of other income the total is $35,130, which is over the $32,000 joint base amount but under $44,000, so up to 50% of benefits could be taxable. Use the worksheet in the Form 1040 instructions or IRS Publication 915 for the exact taxable amount. Our Social Security tax planning guide and state-by-state guide cover state taxes.
Information about Medicare changes for 2027 will be available at medicare.gov, and SSA says the new 2027 benefit amount for people who receive Medicare will be available in December through the mailed COLA notice. CMS has not yet announced the 2027 Part B premium; the 2026 amounts are in our Medicare Part B premium guide and the income surcharges in our IRMAA brackets guide.
SSA: COLA information for 2027, SSA: 2027 COLA fact sheet, IRS Publication 915 and IRS Topic no. 423.