The Social Security cost-of-living adjustment for 2023 was the largest in decades. But the 2024 increase was less than half that amount, and the 2025 increase continued that downward trend.
What does that mean for next year? How big is the 2026 Social Security increase in light of inflation, really, and what will it affect? More importantly, when can you get it?
Keep reading for all those answers and more. Here’s what you need to know about the Social Security cost-of-living adjustment (COLA) for 2026 that arrives in January.
1. The amount of your Social Security increase
The 2026 COLA increase won’t be as dramatic as the one for 2023, when Social Security benefits jumped at the fastest rate since the early 1980s. It will be bigger than — albeit slightly — the one for 2025 though.
The 2.8% increase for 2026 works out to an estimated $56 more per month for retired workers, on average.
More is better, no doubt — but you might be wondering whether this modest increase is cause for much celebration.
2. Your benefit isn’t as big as it seems to begin with
Many Social Security recipients have their Medicare Part B premiums withheld from their benefit payments. (Part B covers doctor visits and other outpatient services.)
So those folks never receive their full Social Security benefit amount each month, but rather what’s left over after their Part B premium is taken out. For 2026, people on Medicare will pay $202.90 per month for the premium.
That’s an increase of $17.90 per month coming straight off the top of the bump in your Social Security. We detail the rest in “6 Medicare Costs That Are Even Higher Than Inflation in 2025.”
3. Your COLA could increase your tax bill
The COLA will increase retirees’ Social Security income. That extra income could in turn cause some retirees to owe more taxes on the benefits they receive in 2026 than those they received in 2025.
It could also cause some people who aren’t currently taxed on their Social Security income to owe Uncle Sam a portion of the benefits they receive in 2026.
We explain the math in “The 2026 Social Security Bump Will Cost Some Retirees. Are Your Benefits at Risk of Taxation?,” but the gist is this: About half of retirees owe taxes on up to 85% of their Social Security benefits, which effectively means they owe a piece of their COLA to Uncle Sam.
You can mitigate this issue by filing a Form W-4V with the Social Security Administration. This won’t change whether you’re taxed on your benefits; instead, it allows you to have taxes withheld from your benefits so you don’t get blindsided later by a big tax bill or a penalty for not making tax payments throughout the year.
4. When you will start receiving your COLA
You’ll start receiving your new benefit amount in January, according to the SSA. The exact date your benefits are sent typically depends on your birthday:
- If your birthday falls on days 1 through 10: You receive your payments on the second Wednesday of each month, meaning you will receive your first payment with the 2026 COLA on Jan. 14.
- If your birthday falls on days 11 through 20: You receive your payments on the third Wednesday of each month, meaning you will receive your first payment with the 2026 COLA on Jan. 21.
- If your birthday falls on days 21 through 31: You receive your payments on the fourth Wednesday of each month, meaning you will receive your first payment with the 2026 COLA on Jan. 28.
These dates are a rule of thumb, though. There are exceptions, as we note in “Your Social Security Payment Gets Bigger on This Date.”
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