Social Security is about to change again, and this time the numbers are already locked in. Starting in January 2026, millions of monthly checks will rise after the federal government confirmed a new cost-of-living adjustment tied to inflation. For many households, the increase won’t feel dramatic, but it will be visible right away.
More than 75 million people who depend on Social Security and SSI will see higher payments, while tax thresholds and contribution limits also move up. The update affects retirees, disabled workers, survivors and anyone still paying into the system through payroll taxes.
What the 2.8% increase means in practice
The COLA raises the average monthly benefit across the board. While individual payments vary based on work history and filing age, the updated estimates give a clear picture of how checks are trending next year.
- Average retired worker: $2,071
- Retired couple, both receiving benefits: $3,208
- Widowed mother with two children: $3,898
- Aged widow(er) living alone: $1,919
- Disabled worker with family: $2,937
- Disabled worker alone: $1,630
These figures reflect national averages and not exact payments. Some beneficiaries will see slightly more, others less, depending on their personal record.
Payroll taxes stay the same, but limits rise
There is no increase in payroll tax rates for 2026. Employees will continue paying 7.65% of wages, which combines Social Security and Medicare contributions. Self-employed workers remain at 15.3%, since they cover both sides of the tax.
Higher earners should note that the additional Medicare tax of 0.9% still applies once income exceeds $200,000 for individuals or $250,000 for married couples filing jointly. That rule hasn’t changed, but it continues to catch more people as wages rise.
Higher cap on taxable earnings
One of the more relevant shifts for workers is the increase in the maximum amount of earnings subject to Social Security tax. In 2026, that ceiling moves up to $184,500, compared to $176,100 in 2025.
.Any income above that threshold is not taxed for Social Security purposes, though Medicare taxes still apply with no upper limit. This adjustment mainly affects higher-income workers, especially those who hit the cap early in the year.
Credits needed for future benefits also adjust
The value of a single Social Security credit increases in 2026. Workers will need $1,890 in earnings to earn one credit, up from $1,810. As before, a maximum of four credits can be earned per year.
This change is automatic and reflects overall wage growth. It doesn’t alter the total number of credits required to qualify for retirement or disability benefits, but it slightly raises the bar for future eligibility.
January 2026 payment schedule
Payment dates depend on your birth date and when you first started receiving benefits. For January 2026, the distribution follows the usual staggered calendar, with checks arriving throughout the month rather than all at once. The higher amount will be visible on the very first payment of the year. SSI recipients, as usual, will receive their adjusted payment at the end of January.
Overall, Social Security enters 2026 with moderate increases, stable tax rates and higher thresholds that reflect ongoing inflation. For millions of Americans, it will quietly reshape monthly budgets starting right after the New Year.