Social Security benefits will rise 3.6% in 2027; taxable wage cap goes to $192,300
The increase starts with January payments for about 72 million beneficiaries. The rule change is now formally published in the Federal Register.
The short answer
- 3.6% COLA for 2027; average retirement benefit up about $75 a month (SSA).
- Maximum taxable earnings rise from $184,500 to $192,300.
- Enrol in paperless notices by November 18 to see your COLA notice online.
The Social Security Administration announced a 3.6% cost-of-living adjustment for 2027. On average, retirement benefits will increase by about $75 per month, the agency said.
Nearly 72 million Social Security beneficiaries will see the increase beginning in January 2027. Increased payments to about 7.3 million people receiving Supplemental Security Income begin on December 31, 2026.
The COLA is based on the increase in the CPI-W from the third quarter of 2025 to the third quarter of 2026. The SSA's notice of the cost-of-living increase and other 2027 determinations was published in the Federal Register on October 26.
Other 2027 changes
- Maximum earnings subject to the Social Security tax: $192,300 (2026: $184,500).
- One quarter of coverage: $1,970 (2026: $1,890).
- Earnings-test exempt amount under full retirement age: $25,560 a year (2026: $24,480).
- Exempt amount in the year you reach full retirement age: $67,920 (2026: $65,160).
- Payroll tax rates are unchanged at 7.65% for employees and 15.30% for the self-employed.
People with a my Social Security account can view their COLA notice online from late November. Those without one must create an account and enrol in paperless notices by November 18 to see the notice online; everyone else receives it by mail in December.
What is still unclear
- Medicare Part B premiums for 2027, which are deducted from many benefit payments, are announced separately.
Sources
- Social Security Announces 3.6 Percent Benefit Increase for 2027 — Social Security Administration
- 2027 COLA Fact Sheet — Social Security Administration
- Cost-of-Living Increase and Other Determinations for 2027 — Federal Register
Spotted an error? Tell our corrections desk.
How this article was produced
- Responsible desk:
- Retirement
- Published:
- 27 Oct 2026, 07:50 UTC
- Last updated:
- 27 Oct 2026, 07:50 UTC
- Verification:
- Figures and quotations checked against primary sources under our fact-checking policy and editorial standards.
- Independence:
- No advertiser or affiliate partner had any involvement in this article — see editorial independence and how we make money.
- Corrections:
- Report a factual error.
This article is general financial information and journalism, not personalised financial, investment, tax or legal advice.