Social Security's 2027 COLA is 3.6%: what changes for retirees and workers
The biggest raise in five years arrives in January. Here's what it means for your monthly check, how much Medicare may take back, and why workers earning over $184,500 will pay more Social Security tax.
Updated October 21, 2026 · 5 min read · Numbers computed with our tested calculators and official sources.
Short answer
The Social Security Administration announced on October 14, 2026 that benefits will rise 3.6% in 2027 — the largest cost-of-living adjustment in five years, according to the Journal of Accountancy. For the average retired worker that's about $75 more a month, from $2,095 to $2,170.
Your new benefit at a glance
Multiply your current monthly benefit by 1.036. SSA rounds the result down to the dime, so your exact check may be a few cents lower.
| 2026 benefit | 2027 benefit (+3.6%) | Raise / month | Raise / year |
|---|---|---|---|
| $1,000 | $1,036.00 | +$36.00 | +$432 |
| $1,500 | $1,554.00 | +$54.00 | +$648 |
| $2,000 | $2,072.00 | +$72.00 | +$864 |
| $2,500 | $2,590.00 | +$90.00 | +$1,080 |
| $3,000 | $3,108.00 | +$108.00 | +$1,296 |
| $4,000 | $4,144.00 | +$144.00 | +$1,728 |
The Medicare catch
If you're enrolled in Medicare, your Part B premium is usually taken straight out of your Social Security check. The standard premium is $202.90 a month in 2026, and the Medicare Trustees project roughly $209.50 for 2027 — about $6.60 more. That's a projection, not the final number: CMS usually announces the 2027 premium in November. For the average retiree, the raise would still be well ahead of that increase.
Is 3.6% enough?
The COLA follows inflation in the CPI-W, a price index weighted toward workers' spending. Retirees often spend more on health care and housing than that index assumes, so your own costs may rise faster or slower. To see what today's prices could look like in a few years, try the future inflation calculator — and remember that a 3% average doubles prices in about 23 years.
What changes if you're still working
- Higher wage base: Social Security's 6.2% tax applies to the first $192,300 of wages in 2027 (from $184,500). The most an employee pays rises from $11,439.00 to $11,922.60. Medicare's 1.45% still has no cap. More in our FICA guide.
- Earnings test: if you claim before full retirement age and keep working, SSA withholds $1 for every $2 you earn above $25,560 in 2027 (from $24,480). In the year you reach full retirement age the limit is $67,920, and $1 is withheld for every $3 above it. Withheld benefits aren't lost — your benefit is recalculated at full retirement age.
Estimate your Social Security benefit
Use your earnings and claiming age to see your estimated monthly benefit, and how much waiting adds.
Monthly benefit at your claiming age
$2,200
+0% vs full retirement age (67)
- Per year
- $26,400
- Lifetime total
- $475,200
- Full retirement age
- 67
- 70 beats 62 after age
- 80 yr 5 mo
Amounts in today's dollars; every option also gets yearly cost-of-living increases.
Monthly benefit by claiming age
Every claiming age compared
| Claim at | Change | Monthly | Lifetime total |
|---|---|---|---|
| 62 | -30% | $1,540 | $425,040 |
| 63 | -25% | $1,650 | $435,600 |
| 64 | -20% | $1,760 | $443,520 |
| 65 | -13.3% | $1,906 | $457,440 |
| 66 | -6.7% | $2,053 | $468,084 |
| 67 | +0% | $2,200 | $475,200 |
| 68 | +8% | $2,376 | $484,704 |
| 69 | +16% | $2,552 | $489,984 |
| 70 | +24% | $2,728 | $491,040 |
Get the money numbers that matter — free, once a week
We'll email you the official 2027 Medicare Part B premium and the IRS's 2027 tax brackets the day they're announced — plus one useful money number each week. Free.
Free, about one email a week. Unsubscribe anytime — we never sell your email. Privacy
Frequently asked questions
When does the 2027 Social Security COLA start?+
The 3.6% increase applies to benefits starting in January 2027, so it shows up in the payments you receive in January.
How is the COLA calculated?+
By law, it's the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of last year to the third quarter of this year, averaged over July, August and September.
Will Medicare take part of my raise?+
Possibly. If you're on Medicare, the Part B premium is usually deducted from your benefit. It is $202.90 a month in 2026; the Medicare Trustees project about $209.50 for 2027. CMS usually announces the official figure in November.
Does a bigger benefit mean more tax?+
It can. Up to 85% of benefits become taxable once your 'combined income' (adjusted gross income + nontaxable interest + half your benefits) passes $25,000 single or $32,000 married filing jointly. Those thresholds aren't adjusted for inflation, so each COLA can push a little more of your benefit into taxable income.
I'm still working — what changes for me?+
More of your wages are subject to Social Security tax in 2027: up to $192,300, from $184,500. If you earn above $184,500, you'll pay up to $483.60 more. Earnings below the old cap aren't affected.