The new Social Security changes for 2026 center on a 2.8 percent cost-of-living adjustment that raises the average retired worker’s check by about $56 a month, higher dollar thresholds for payroll taxes and the earnings test, and the ongoing rollout of larger payments to public-sector retirees after Congress repealed the Windfall Elimination Provision and Government Pension Offset in January 2025.1Social Security Administration. 2026 Cost-of-Living Adjustment (COLA) Fact Sheet2Social Security Administration. Social Security Fairness Act: Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) You do not need to file anything to get the increase; the Social Security Administration applies it automatically and sends a notice with your exact new amount.
The 2.8 Percent COLA Starts in January
Social Security retirement benefits rise by 2.8 percent starting in January 2026. Supplemental Security Income recipients see the same increase in their late-December 2025 payment. The average retired worker’s monthly check moves from about $2,015 to $2,071. Couples where both spouses collect benefits will average roughly $3,208 per month.1Social Security Administration. 2026 Cost-of-Living Adjustment (COLA) Fact Sheet
The adjustment tracks the Consumer Price Index for Urban Wage Earners and Clerical Workers. When that index shows a year-over-year rise, federal law requires the agency to match it. The 2026 figure is a step down from 3.2 percent in 2025 and well below the 8.7 percent spike in 2023, reflecting cooler inflation. If prices held flat or dropped, benefits would stay the same rather than shrink.3Social Security Administration. Cost-Of-Living Adjustment
One thing to watch: Medicare Part B premiums come straight out of your Social Security check, so a premium hike can eat into the COLA. The standard Part B premium is $202.90 per month in 2026, up from $185.00 in 2025.4Centers for Medicare & Medicaid Services. 2026 Medicare Parts A and B Premiums and Deductibles A federal hold-harmless rule keeps your net check from actually dropping because of the Part B increase, but for many beneficiaries most of the raise will go toward the higher premium.
WEP and GPO Repeal Is Still Rolling Out
The biggest structural change in years took effect retroactively. The Social Security Fairness Act, signed on January 5, 2025, ended two provisions that had reduced or wiped out benefits for people who earned pensions from jobs that did not pay into Social Security. The change affects more than 2.8 million people.2Social Security Administration. Social Security Fairness Act: Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)
The workers hit hardest by the old rules were teachers, firefighters, police officers, and other state and local government employees in states where those jobs did not require Social Security payroll taxes. Federal employees under the older Civil Service Retirement System and people with foreign social security pensions were also affected. If you worked one of those jobs and also qualified for Social Security through other covered employment or a spouse’s record, WEP shrank your own retirement benefit and GPO could eliminate your spousal or survivor benefit entirely.
Under the new law, December 2023 was the last month either provision applied. Benefits payable from January 2024 forward are calculated without the reduction. The Social Security Administration began adjusting monthly payments on February 25, 2025, and most affected beneficiaries started receiving their corrected amount in April 2025. Anyone underpaid since January 2024 is also owed a one-time retroactive lump sum. As of July 2025, the agency had sent more than 3.1 million payments totaling $17 billion, finishing five months ahead of schedule.2Social Security Administration. Social Security Fairness Act: Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)
About 72 percent of state and local public employees already work in jobs covered by Social Security, so the repeal does not change their benefits. If you were never subject to WEP or GPO, nothing about the repeal affects your payments.
The Wage Base Rises to $184,500
The Social Security taxable earnings cap climbs to $184,500 in 2026, up from $176,100 in 2025. This is the ceiling on wages subject to the 6.2 percent Social Security payroll tax. Every dollar above the cap is exempt from that tax, though the 1.45 percent Medicare tax still applies to all earnings.1Social Security Administration. 2026 Cost-of-Living Adjustment (COLA) Fact Sheet
Your employer pays a matching 6.2 percent. Self-employed workers pay both halves, so the maximum Social Security tax on self-employment income in 2026 is $22,878.5Social Security Administration. Contribution and Benefit Base If you earn above the old cap but below the new one, expect slightly smaller paychecks early in the year, because more of your income falls within the taxable range before you hit the ceiling. Higher taxable earnings can also raise your eventual benefit, since the agency calculates payments from your highest 35 years of indexed earnings.
Earnings Test Limits for Working Beneficiaries
If you collect Social Security before full retirement age and keep working, your benefits may be temporarily reduced once your earnings pass a threshold. For 2026, that threshold is $24,480 for anyone who stays under full retirement age the entire year. Above that, the agency withholds $1 in benefits for every $2 over the limit.6Social Security Administration. Exempt Amounts Under the Earnings Test
Rules loosen in the calendar year you reach full retirement age. The limit jumps to $65,160, and the withholding rate drops to $1 for every $3 over the limit. Only earnings in the months before your birthday month count. Once you hit full retirement age, there is no earnings limit at all.1Social Security Administration. 2026 Cost-of-Living Adjustment (COLA) Fact Sheet
Money withheld under the earnings test is not lost. When you reach full retirement age, the agency recalculates your monthly benefit to credit the months payments were reduced or withheld, so your ongoing check goes up.7Social Security Administration. Retirement Ready Fact Sheet For Workers Ages 61-69 For anyone born in 1960 or later, full retirement age is 67.8Social Security Administration. Benefits Planner: Retirement – Born in 1960 or Later
Disability Thresholds Move Up
Social Security Disability Insurance beneficiaries face monthly earnings limits that determine whether the agency considers them capable of substantial work. For 2026, non-blind individuals can earn up to $1,690 per month before benefits are at risk. Blind individuals have a higher threshold of $2,830 per month.9Social Security Administration. Substantial Gainful Activity
The trial work period lets you test a job without losing benefits. In 2026, any month you earn more than $1,210 counts as a trial work month. You get nine trial work months within a rolling 60-month window, and during that stretch you keep your full benefits regardless of how much you earn.10Social Security Administration. What’s New in 2026 – The Red Book The Ticket to Work program adds another protection: the agency will not initiate a medical review of your disability while you are making timely progress in it, and Medicare coverage can continue for at least eight and a half years after you start working, as long as the disability persists.11Social Security Administration. Your Ticket to Work: What You Need to Know to Keep It Working for You
SSI Payments
Supplemental Security Income, the needs-based program for aged, blind, and disabled individuals with limited income, rises with the 2.8 percent COLA. The maximum federal SSI payment for 2026 is $994 per month for an individual and $1,491 for an eligible couple.12Social Security Administration. SSI Federal Payment Amounts for 2026 Many states add a supplemental payment on top of the federal amount, so actual checks vary by location. The countable resource limits, $2,000 for an individual and $3,000 for a couple, have not changed.13Social Security Administration. Understanding Supplemental Security Income SSI Resources
Medicare Part B Surcharges for Higher Earners
Most beneficiaries pay the standard $202.90 Part B premium in 2026. If your modified adjusted gross income exceeds $109,000 as an individual or $218,000 as a married couple filing jointly, you also pay an income-related surcharge. These surcharges affect roughly 8 percent of Part B enrollees.4Centers for Medicare & Medicaid Services. 2026 Medicare Parts A and B Premiums and Deductibles
The 2026 tiers for individuals filing singly are:
- $109,001 to $137,000: $284.10 total monthly premium
- $137,001 to $171,000: $405.80 total monthly premium
- $171,001 to $205,000: $527.50 total monthly premium
- $205,001 to $499,999: $649.20 total monthly premium
- $500,000 and above: $689.90 total monthly premium
Married couples filing jointly hit each bracket at double the individual threshold. The income used comes from your tax return two years prior, so your 2024 return sets your 2026 premium. If your income has dropped significantly since then because of retirement or another life-changing event, you can ask the Social Security Administration to use more recent income instead.