The 2026 COLA announcement and payment date

The Social Security Administration announces the annual cost-of-living adjustment (COLA) in October each year. For 2026, the announcement will happen in October 2025. The new benefit amount takes effect in January 2026, and most beneficiaries will see the increase in their payment on the third Wednesday of January — which falls on January 21, 2026.

The COLA percentage is not set until October 2025, so the exact dollar amount of your increase cannot be known before then. The adjustment is based on inflation data from the third quarter of the year (July, August, September). If inflation has been low, the COLA may be small or even zero; if inflation has been high, the adjustment will be larger.

You do not need to do anything to receive the COLA. It is applied automatically to your account. The Social Security Administration sends a notice in December showing your new benefit amount starting in January.

Key Takeaways

  • The 2026 COLA percentage will be announced in October 2025 and becomes effective January 1, 2026.
  • Most beneficiaries receive their first increased payment on January 21, 2026 (the third Wednesday of the month).
  • The adjustment amount depends on inflation data from July through September 2025 and cannot be predicted in advance.
  • You will receive a notice in December 2025 showing your new monthly benefit amount.
  • No action is required on your part — the increase is applied automatically to your Social Security account.

How the COLA is calculated

The COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), published by the Bureau of Labor Statistics. The Social Security Administration compares the average CPI-W for July, August, and September of the current year to the same three months of the previous year. If the index has risen, beneficiaries receive a COLA equal to that percentage increase.

This means the COLA reflects how much prices have gone up for everyday goods and services — groceries, utilities, gasoline, housing, and medical care. A year with higher inflation produces a higher COLA; a year with lower inflation produces a lower COLA. Since 1975, there have been three years with no COLA at all (1983, 2010, and 2016), when inflation was flat or negative.

Who receives the 2026 COLA

All Social Security beneficiaries receive the COLA automatically — retirees, disabled workers, and surviving family members. Veterans who receive Dependency and Indemnity Compensation (DIC) also receive the same percentage increase. Supplemental Security Income (SSI) recipients receive a separate COLA that is usually the same amount, though it is calculated and paid on a different schedule.

The only beneficiaries who do not receive a COLA are those whose benefits are suspended due to work earnings. If you are under full retirement age and earning above the annual earnings limit, your benefits may be withheld; the COLA still applies to your account, but you do not receive the payment until your benefits resume.

Payment timing for different beneficiary groups

Most beneficiaries receive their January payment on the third Wednesday of the month. However, the exact date depends on when you were originally assigned a Social Security number and when you first became a beneficiary. The Social Security Administration staggered payment dates to spread the workload: beneficiaries born on the 1st through the 10th of any month typically receive payment on the second Wednesday; those born on the 11th through the 20th receive it on the third Wednesday; and those born on the 21st through the 31st receive it on the fourth Wednesday.

If you receive benefits through direct deposit, the payment arrives in your bank account on your scheduled date. If you receive a check by mail, allow extra time for postal delivery. If you receive a benefits card (debit card), the funds are loaded on your scheduled payment date.

What to expect in your December notice

In December 2025, the Social Security Administration will mail you a notice titled "Social Security Benefit Statement" or similar. This notice shows your new monthly benefit amount starting January 2026, the percentage increase from the COLA, and the dollar amount of the increase. Keep this notice for your records, as you may need it for tax purposes or to update other benefits.

If you have set up a my Social Security account online, you can also view your benefit information there. The account will be updated to show your new amount before the December notice arrives in the mail.

How the COLA affects taxes and other benefits

A higher Social Security benefit may push some of your income into a range where a portion of your benefits becomes taxable. If you file a federal tax return, you will need to report your total Social Security income for 2026. The Social Security Administration will send you a Form SSA-1099 in January showing your total benefits for the previous year.

If you receive Medicare, your Part B and Part D premiums are tied to your income from two years prior. The 2026 COLA does not affect your 2026 Medicare premiums, since those are based on 2024 income. However, it may affect your 2027 premiums. If you receive Medicaid or other means-tested benefits, a higher Social Security payment may change your may be able to access or the amount you receive; contact your state Medicaid office if you are unsure.

Planning for the 2026 increase

If you budget your monthly expenses based on your current Social Security payment, the January increase will give you slightly more room in your budget. The amount varies widely — in recent years, COLAs have ranged from 0 percent to 8.7 percent — so the dollar increase could be anywhere from nothing to several hundred dollars depending on your current benefit amount and inflation between July and September 2025.

If you are working part-time and your earnings are close to the annual limit, a higher Social Security benefit does not change the earnings limit itself, so your withholding rules remain the same. If you are considering when to claim Social Security, the COLA does not change the age at which you can claim or the percentage increase you receive for delaying your claim.

Frequently Asked Questions

Can I find out the 2026 COLA before October 2025?

No. The COLA is calculated from inflation data that is not finalized until September 2025. The Social Security Administration announces the percentage in October 2025. You can read estimates from economists and news outlets, but these are predictions, not official figures.

What if I disagree with the amount shown in my December notice?

Contact the Social Security Administration directly at 1-800-772-1213 or visit your local Social Security office. Bring your notice and any documents related to your account. Errors in COLA calculations are rare, but if your account has a mistake, the agency can correct it.

Does the COLA apply if I am still working?

Yes, the COLA applies to your account automatically. However, if your earnings exceed the annual limit for your age, your benefits may be withheld. The COLA still increases your benefit amount; you simply do not receive the payment until your earnings drop below the limit or you reach full retirement age.

Will the COLA increase my Medicare premiums?

Not immediately. Your 2026 Medicare Part B and Part D premiums are based on your 2024 income. The 2026 COLA may affect your 2027 premiums if it pushes your income into a higher bracket. You will receive a new Medicare premium notice in the fall of 2025 showing your 2026 rates.

How do I report the COLA on my taxes?

The Social Security Administration sends you a Form SSA-1099 in January showing your total benefits for the previous year. You report this amount on your federal tax return. Depending on your total income, a portion of your benefits may be taxable. A tax professional or the IRS website can help you determine your tax liability.