Social Security payments will rise in 2026 based on inflation measured through September 2025

Every January, Social Security payments increase by a percentage set by the Cost of Living Adjustment (COLA). This adjustment is calculated using inflation data from the third quarter of the previous year — so the 2026 increase will be based on how much prices rose between July and September 2025. The exact percentage won't be announced until October 2025, when the Social Security Administration releases the official figure.

The COLA affects everyone receiving Social Security retirement, survivor, and disability benefits. It also affects Supplemental Security Income (SSI) payments. The increase applies automatically — you don't need to do anything to receive it. Your new payment amount will appear in your January 2026 benefit, and the Social Security Administration will mail a notice showing the new figure before the year ends.

If you're still working and receiving reduced retirement benefits, the increase still applies to your benefit amount, though your earnings may still reduce what you receive each month. Medicare premiums are also adjusted annually, and those changes sometimes offset part of the COLA increase for people on Medicare.

Key Takeaways

  • The 2026 COLA will be announced in October 2025 and is based on inflation from July through September 2025.
  • The increase applies automatically to all Social Security retirement, disability, and survivor benefits without any action required from you.
  • Medicare Part B premiums are also adjusted each year, and the premium increase may reduce the net gain from the COLA for beneficiaries on Medicare.
  • You'll receive a notice in the mail before January 2026 showing your new benefit amount.

How the COLA is calculated and announced

The Social Security Administration calculates COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation published by the Bureau of Labor Statistics. Specifically, they compare the average CPI-W for July, August, and September of the current year to the same three months from the previous year. If prices have risen, beneficiaries receive a percentage increase equal to that rise. If there is no increase or prices have fallen, the COLA is zero — benefits do not decrease.

The announcement happens on the second Tuesday in October each year. For 2026, that date is October 13, 2025. The Social Security Administration posts the COLA percentage on its website and sends notices to all beneficiaries. News outlets typically report the figure widely, so you'll see it covered in the media as well.

Historical COLA increases have ranged from zero (in 2010, 2011, and 2016) to 8.7% (in 2023). The size of the increase depends entirely on inflation during those three months and cannot be predicted with certainty before the data is released.

When the increase takes effect and how it appears in your payment

The 2026 COLA increase takes effect with your January 2026 benefit payment. If you receive benefits on the third Wednesday of the month (the standard payment date for most retirees born after May 1, 1943), your increased payment will arrive on January 21, 2026. If you receive payments on a different schedule — either because you were born before May 2, 1943, or because you also receive Supplemental Security Income — your payment date may differ, but the increase still begins in January.

The Social Security Administration will mail you a notice, called a Cost of Living Adjustment notice, before the end of December 2025. This notice shows your old benefit amount, the percentage increase, and your new monthly payment starting in January. Keep this notice for your records, as you may need it for tax purposes or to update other benefits tied to your Social Security income.

If you manage your Social Security account online through my Social Security (the official portal at ssa.gov), you can also view your updated payment amount there once it's been processed.

How Medicare premiums affect your net increase

For people enrolled in Medicare Part B, the monthly premium is deducted directly from Social Security benefits. Each year, Medicare premiums are adjusted based on projected program costs, and this adjustment is separate from the COLA calculation. In some years, the premium increase has been large enough to offset most or all of the COLA increase.

The hold harmless provision protects most beneficiaries: if your Medicare Part B premium would increase by more than your COLA increase, the law limits the premium increase so that your net benefit payment doesn't fall. However, people who are new to Medicare or who didn't pay Medicare premiums the previous year are not protected by this rule and may see a larger premium increase.

The 2026 Medicare Part B premium will be announced in November 2025, after the COLA is known. At that point, you'll have a clearer picture of what your actual take-home payment will be after the premium is deducted.

What the 2026 COLA means for your annual earnings record

If you're still working while receiving reduced retirement benefits, the COLA increase applies to your benefit amount, but your earnings may still reduce your monthly payment. Social Security reduces benefits by $1 for every $2 you earn above the annual earnings limit (the limit changes yearly based on wage growth). The COLA doesn't change this rule — it only increases the base amount before the earnings reduction is applied.

The earnings limit for 2025 is $23,400. The 2026 limit will be announced in October 2025 along with the COLA. If you expect to earn more than the limit in 2026, you should plan for a possible reduction in your benefit that month, even with the COLA increase.

Once you reach full retirement age, the earnings limit no longer applies, and you receive your full benefit plus the COLA increase with no reduction.

How COLA affects other benefits tied to Social Security

If you receive Supplemental Security Income (SSI), your payment also increases by the COLA percentage. SSI is a needs-based program for people with low income and limited resources, and the federal benefit amount is adjusted annually using the same COLA as Social Security.

Some state programs that supplement SSI also adjust their payments based on the federal COLA, though the rules vary by state. If you receive SSI, your state agency will notify you of any changes to your payment.

If you receive survivor benefits as a spouse or child of a deceased worker, the COLA increase applies to your benefit as well. All family members on the same worker's record receive the same percentage increase.

Planning for the 2026 increase

The COLA increase is modest in most years and rarely requires major financial planning. However, if you're budgeting for 2026, you can make a rough estimate by looking at recent inflation trends. The Social Security Administration publishes historical COLA percentages on its website, which can give you a sense of the range, though past increases don't predict future ones.

If you manage a tight budget, the increase may provide some relief, but it's usually not enough to offset significant cost increases in healthcare, housing, or other major expenses. Some beneficiaries use the increase to build a small cushion in savings or to adjust their spending plan for the year.

If you have questions about how the 2026 increase will affect your specific situation — for example, if you're still working or if you receive both Social Security and SSI — you can contact Social Security directly at 1-800-772-1213 or visit your local Social Security office.

Frequently Asked Questions

Can I find out what my 2026 payment will be before October 2025?

No — the COLA percentage depends on inflation data that won't be final until September 2025. You can estimate by assuming a range (recent COLAs have ranged from 2% to 8.7%), but the exact amount won't be known until October. The Social Security Administration will mail your official notice in December 2025.

What if I disagree with the COLA amount announced?

The COLA is calculated by formula using official government inflation data and cannot be appealed or changed. If you believe there's an error in how the increase was applied to your specific benefit, you can contact Social Security to review your account, but the COLA percentage itself is fixed.

Will the 2026 increase affect my taxes on Social Security benefits?

Possibly. If your combined income (adjusted gross income plus half your Social Security benefits plus tax-exempt interest) crosses certain thresholds, part of your benefits become taxable. The COLA increase could push you over that threshold. Consult a tax professional if you're close to those limits.

Does the COLA apply if I'm receiving benefits but haven't started yet?

If you're receiving benefits, the COLA applies automatically. If you haven't yet claimed Social Security, the COLA doesn't affect you — your benefit amount is calculated based on your earnings record and the age at which you claim, not on past COLA increases.

What happens to my COLA if I'm receiving benefits outside the United States?

If you live outside the U.S., you still receive the COLA increase, with rare exceptions. Some countries have restrictions on U.S. benefit payments, but most beneficiaries abroad receive the same annual adjustment as those in the U.S. Contact Social Security if you're unsure about your situation.