The 2026 COLA will increase Social Security payments by a set percentage announced in October 2025

Social Security payments rise each year through a mechanism called the Cost-of-Living Adjustment, or COLA. The Social Security Administration announces the COLA percentage in mid-October, and it takes effect the following January. The 2026 COLA was announced in October 2025 and applies to all benefit payments starting in January 2026.

The COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation across the economy. If inflation rises, the COLA rises. If inflation falls or stays flat, the COLA can be zero or very small. The adjustment is the same percentage for all beneficiaries — there is no individual variation based on your circumstances.

Your new payment amount will appear in your January 2026 benefit deposit. If you receive a paper check, the amount will be printed on the check stub. If you use direct deposit, you can see the new amount by logging into your Social Security account at ssa.gov or by calling 1-800-772-1213.

Key Takeaways

  • The COLA is announced each October and takes effect in January of the following year, affecting all Social Security beneficiaries at the same time.
  • The percentage increase is based on inflation measured by the Consumer Price Index and is the same for everyone receiving Social Security benefits.
  • You do not need to take any action to receive the COLA increase — it is applied automatically to your account.
  • Your new payment amount will show up in your January deposit or check, and you can verify it through your Social Security account online or by phone.

How the COLA is calculated each year

The Social Security Administration uses the average Consumer Price Index for the third quarter of each year (July, August, and September) and compares it to the average for the same quarter in the previous year. If the 2025 third-quarter average is higher than the 2024 third-quarter average, the difference becomes the COLA percentage. This calculation happens automatically; the SSA does not make a judgment call about whether a COLA should happen.

If inflation is low or prices actually fall, the COLA can be zero. This happened in 2016, when there was no increase. However, there is a hold-harmless provision that protects most beneficiaries: if you were already receiving benefits in the year before a zero-COLA year, your payment cannot go down. New beneficiaries and those who start receiving benefits in a zero-COLA year do not receive a payment, but existing beneficiaries keep what they had.

The announcement in October gives you three months' notice before the increase takes effect. This timing allows the SSA to update payment records and notify beneficiaries of their new amounts.

Who receives the COLA increase

Nearly all Social Security beneficiaries receive the COLA, including retirees, disabled workers, and survivors of deceased workers. If you receive retirement benefits, Supplemental Security Income (SSI), or Disability Insurance (SSDI), the COLA applies to your account. Family members who receive benefits based on your work record — such as a spouse or child — also receive the same percentage increase.

Government employees who did not pay into Social Security but receive a pension based on work not covered by Social Security may be affected differently. The Government Pension Offset and Windfall Elimination Provision can reduce or eliminate spousal or survivor benefits, and these reductions are recalculated each year. If this applies to you, your new payment may change by more or less than the COLA percentage.

If you are not yet receiving benefits, the COLA does not affect you directly, but it does affect the amount you will receive when you start. Your future benefit is calculated based on your earnings history, and the COLA adjusts historical earnings upward to account for inflation, which can increase your eventual payment.

What the COLA means for your budget and taxes

A COLA increase means more money each month, but the amount varies widely depending on your current benefit. Someone receiving $1,500 per month will see a different dollar increase than someone receiving $3,000 per month, even though the percentage is identical. The SSA will show you the exact new amount before it takes effect.

If your income is high enough, part of your Social Security benefits may be subject to federal income tax. A COLA increase could push you into a tax bracket where more of your benefits become taxable. This is not automatic — it depends on your total income for the year — but it is worth considering if you have other income sources like pensions, investments, or part-time work.

If you receive Supplemental Security Income (SSI), a COLA increase may affect your may be able to access for other means-tested programs like Medicaid or food assistance. Some programs count Social Security income differently, so a higher benefit could change what you may have access to for. Contact your state's benefits office if you receive SSI and want to understand how the increase affects your other programs.

When the increase appears in your account

The COLA takes effect on January 1 each year. If you receive benefits by direct deposit, the new amount will be deposited on your regular payment date in January — usually the second, third, or fourth Wednesday of the month, depending on your birth date. If you receive a paper check, it will arrive with the new amount printed on it.

You do not need to contact Social Security or take any action to receive the increase. The adjustment is applied automatically to every beneficiary's account. If you want to verify the new amount before it arrives, you can check your Social Security account online at ssa.gov starting in late December, or call 1-800-772-1213 to speak with a representative.

Frequently Asked Questions

Do I have to do anything to get the COLA increase?

No. The increase is applied automatically to your account. You do not need to contact Social Security, submit any forms, or take any action. The new amount will appear in your January payment.

What if I think the COLA amount is wrong?

Check your Social Security account online or call 1-800-772-1213 to verify the amount. The COLA percentage is the same for all beneficiaries, so if your increase does not match the announced percentage, there may be an error in your record. A representative can review your account and correct any mistakes.

Does the COLA increase affect Medicare premiums?

Medicare Part B and Part D premiums are adjusted each year, but the adjustment is separate from the COLA. However, there is a hold-harmless provision for Medicare: if you are already enrolled, your Part B premium cannot increase by more than the amount of your Social Security COLA increase. This means your net benefit increase is protected.

Will the COLA increase make me ineligible for other benefits?

It depends on the program. Means-tested programs like Medicaid, SNAP, or housing assistance count income differently. A COLA increase could affect your may be able to access for these programs. Contact your state or local benefits office to understand how the increase affects your specific situation.

Can the COLA ever be negative?

The COLA percentage itself cannot be negative, but it can be zero if inflation is flat or prices fall. When the COLA is zero, existing beneficiaries keep their current payment amount due to the hold-harmless provision. New beneficiaries in that year would not receive an increase, but this is rare.