Federal · SSA notice, 2027 cost-of-living increase

Social Security and SSI go up 3.6% for 2027: new payment amounts, earnings limits and the taxable wage cap

Announced Oct. 23, 2026 · Higher SSI Dec. 31, Social Security January 2027

Published October 24, 2026 · Last updated October 24, 2026

What it does

Every year the Social Security Administration (SSA) adjusts benefits for inflation using a formula in the Social Security Act. It compares the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) in July through September of this year with the same months of last year. That index averaged 317.265 in the third quarter of 2025 and 328.746 in the third quarter of 2026, an increase of 3.6%. (SSA notice, “Cost-of-Living Increases,” Computation) SSA’s notice sets these 2027 amounts:

• Social Security benefits (retirement, survivors and disability) increase 3.6% for people eligible for December 2026 benefits, which are paid in January 2027. (SSA notice, “Cost-of-Living Increases,” General)
• SSI maximum federal payments rise to $1,029 a month for an eligible individual (from $994 in 2026), $1,544 for an eligible individual with an eligible spouse (from $1,491) and $516 for an essential person (from $498). (SSA notice, “Title XVI Payment Amounts”)
• Taxable maximum. Social Security (OASDI) tax applies to wages paid and self-employment income earned up to $192,300 in 2027, up from $184,500. This is also the most earnings that count toward figuring benefits. (SSA notice, “OASDI Contribution and Benefit Base”)
• Retirement earnings test. If you get benefits before full retirement age and keep working, SSA withholds $1 for every $2 you earn over $25,560 in 2027 (up from $24,480). In the year you reach full retirement age, it withholds $1 for every $3 over $67,920 (up from $65,160), counting only earnings before the month you reach that age. There is no earnings limit once you are at full retirement age for the whole year. (SSA notice, “Retirement Earnings Test Exempt Amounts”; SSA, COLA Information for 2027)
• Disability work limits. Earnings over $1,770 a month in 2027 (up from $1,690) are generally considered “substantial gainful activity” for people with disabilities who are not blind, and $2,950 a month (up from $2,830) for people who are statutorily blind. A month counts toward the trial work period if earnings exceed $1,270 (up from $1,210). (SSA notice, “Substantial Gainful Activity Amounts” and “Trial Work Period Earnings Threshold”)
• Work credits. You earn one quarter of coverage (a “credit”) for each $1,970 of earnings in 2027, up from $1,890. (SSA notice, “Quarter of Coverage Amount”)
• Household employees and election workers. Pay to a domestic worker is covered by Social Security and Medicare once it reaches $3,100 in 2027; for election officials and election workers the threshold is $2,700. (SSA notice, “Domestic Employee Coverage Threshold” and “Election Official and Election Worker Coverage Threshold”)
• Other amounts. The SSI student earned income exclusion becomes $2,500 a month, up to $10,080 for the year; the fee limit for organizational representative payees becomes $59 a month ($110 in certain disability and addiction cases); and the cap on SSA’s user fee when it pays a representative’s fee directly becomes $128. (SSA notice, Supplementary Information)

Who it affects

• People who get Social Security retirement, survivors or disability benefits: nearly 72 million nationwide, according to SSA. (SSA, COLA Information for 2027)
• People who get SSI, the needs-based federal payment for people who are aged, blind or disabled: about 7.3 million nationwide. Some people get both. (SSA, COLA Information for 2027)
• Workers and employers, through the higher taxable maximum and the 2027 work-credit amount, and beneficiaries who work, through the new earnings-test and disability work limits. (SSA notice)

What it means for you

• When the money changes. SSI recipients see the increase in the payment made December 31, 2026. Social Security beneficiaries see it starting with the payment received in January 2027. (SSA, COLA Information for 2027; SSA notice)
• Your exact amount. SSA says most beneficiaries can read their COLA notice online in the Message Center of their my Social Security account in late November 2026, if they created the account by November 18, 2026. If you have Medicare, your new 2027 benefit amount will be in the mailed COLA notice and in the Message Center in December. 2027 Medicare premium information will come from Medicare. (SSA, COLA Information for 2027)
• If you are newly eligible in 2027, the 3.6% increase does not apply to you. It applies to people whose eligibility (reaching 62, or disability or death before 62) occurred before 2027. (SSA notice, “Title II Benefit Amounts”)
• Watch for scams. SSA says its services are free and that no government agency or reputable company will ask for advance fees by wire transfer or gift card. (SSA, COLA Information for 2027)
• Questions about your benefits: ssa.gov or 1-800-772-1213 (TTY 1-800-325-0778). (SSA notice, For Further Information Contact)

Current status

SSA filed the notice for public inspection on October 23, 2026, and it is scheduled to be published in the Federal Register on October 26, 2026 (FR Doc. 2026-21796, docket SSA-2026-1024). The law requires these amounts to be published each year; the increase applies automatically and no vote or comment period is involved. (SSA notice, header and Supplementary Information) The 2026 increase was 2.8%. (SSA, COLA Information for 2027, history table)

What happens next

COLA notices go out online in late November and by mail in December. Higher SSI payments start December 31, 2026, and higher Social Security payments in January 2027. (SSA, COLA Information for 2027) For other Social Security changes, see our explainer on the updated heart and blood vessel disability listings.

Sources

• Federal Register: “Cost-of-Living Increase and Other Determinations for 2027,” Social Security Administration notice, FR Doc. 2026-21796 (filed Oct. 23, 2026; publication Oct. 26, 2026)
• Social Security Administration: Cost-of-Living Adjustment (COLA) Information for 2027

Every statement above is drawn from the official source text linked here; section references are shown in grey. This is a plain-English summary, not legal advice. Spot an error? Tell us.