When the 3.6 percent arrives
- Social Security: from the December 2026 benefits, paid in January 2027, for nearly 72 million beneficiaries.
- SSI: from the January 2027 payment, which is made on December 31, 2026, because January 1 is a holiday; about 7.3 million recipients.
- Your notice: in the my Social Security Message Center from late November, or by mail in December. It shows your new amount and any deductions, such as the Medicare premium, whose 2027 figure is published by Medicare.
Payment days themselves follow the schedule in Social Security payment dates.
Average benefits before and after
| Beneficiary | Before | After 3.6% |
|---|---|---|
| All retired workers | $2,095 | $2,170 |
| Aged couple, both receiving benefits | $3,238 | $3,355 |
| Widowed mother and two children | $3,932 | $4,074 |
| Aged widow(er) alone | $1,936 | $2,005 |
| Disabled worker, spouse and one or more children | $2,970 | $3,077 |
| All disabled workers | $1,642 | $1,701 |
These are the SSA's estimated averages for January 2027. Your own new amount, and any deductions from it, are in your COLA notice.
Other figures that change for 2027
| Figure | 2026 | 2027 |
|---|---|---|
| Maximum taxable earnings | $184,500 | $192,300 |
| Earnings for one credit (quarter of coverage) | $1,890 | $1,970 |
| Earnings test, under full retirement age | $24,480 a year | $25,560 a year |
| Earnings test, year you reach full retirement age | $65,160 a year | $67,920 a year |
| Substantial gainful activity, non-blind | $1,690 a month | $1,770 a month |
| Substantial gainful activity, blind | $2,830 a month | $2,950 a month |
| Trial work period | $1,210 a month | $1,270 a month |
| Maximum benefit at full retirement age | $4,152 a month | $4,188 a month |
| SSI federal payment, individual | $994 a month | $1,029 a month |
| SSI federal payment, couple | $1,491 a month | $1,544 a month |
The payroll tax rate stays at 7.65 percent for employees and 15.3 percent for the self-employed. What the earnings test means is in Social Security earnings limit, and the SSI and disability figures are explained in SSI vs SSDI.
How the COLA is calculated
The law ties the COLA to the CPI-W, the consumer price index for urban wage earners and clerical workers. The SSA compares the average for July, August and September of this year with the same average for the last year a COLA took effect: (328.746 minus 317.265) divided by 317.265 is 3.6 percent, rounded to the nearest tenth. Recent COLAs for comparison:
| COLA effective December | Increase |
|---|---|
| 2021 | 5.9% |
| 2022 | 8.7% |
| 2023 | 3.2% |
| 2024 | 2.5% |
| 2025 | 2.8% |
| 2026 | 3.6% |
How a larger benefit affects your taxes is in how Social Security benefits are taxed, and how the base benefit is computed in how Social Security benefits are calculated. The budget planner helps rework a monthly budget around the new amount.
Frequently asked questions
What is the Social Security COLA for 2027?
3.6 percent, announced by the SSA on October 14, 2026. It raises Social Security benefits from January 2027 and SSI payments from December 31, 2026. On average, retirement benefits rise by about $75 a month.
When will I see the 2027 COLA?
Social Security benefits rise beginning with the December 2026 benefits, which are paid in January 2027. Increased SSI payments begin on December 31, 2026, because the January payment date falls on a holiday.
How is the COLA calculated?
From the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W): the average for July to September 2026, 328.746, compared with the same average for 2025, 317.265, which is a 3.6 percent increase after rounding to the nearest tenth.
What else changes in 2027?
The taxable maximum rises to $192,300, a credit takes $1,970 of earnings, the earnings test limits rise to $25,560 and $67,920, and the maximum SSI payment rises to $1,029 for an individual and $1,544 for a couple.
Where do I find my new benefit amount?
In your COLA notice. With a my Social Security account, the notice appears in the Message Center starting in late November; otherwise it arrives by mail in December, according to the SSA.
Sources
- Social Security Administration: 2027 cost-of-living adjustment fact sheet (3.6 percent; tax rates; taxable maximum; quarter of coverage; earnings test; disability thresholds; maximum benefit; SSI payment standard and resource limits; estimated average benefits before and after the COLA)
- SSA press release, October 14, 2026: Social Security announces 3.6 percent benefit increase for 2027 (average retirement increase of $75, timing for Social Security and SSI, COLA notices online and by mail)
- SSA Office of the Chief Actuary: Latest cost-of-living adjustment (CPI-W third-quarter averages of 317.265 for 2025 and 328.746 for 2026, the formula and rounding, benefits for December 2026 paid in January 2027)
- SSA Office of the Chief Actuary: Cost-of-living adjustments by year
General information based on the sources above, not tax, legal or financial advice.