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Social Security COLA for 2027: 3.6%, explained
The raise is larger than 2026’s 2.8%. It arrives with January 2027 benefits for Social Security and on December 31, 2026 for SSI, and several other figures moved with it.
Apply 3.6% to your own benefitThe 2027 raise
3.6%, up from 2.8% for 2026.
On October 14, 2026, the Social Security Administration announced a 3.6% cost-of-living adjustment (COLA) for 2027, covering Old-Age, Survivors, and Disability Insurance and Supplemental Security Income — 76 million people in all. Nearly 72 million Social Security beneficiaries see it beginning in January 2027; increased payments to about 7.3 million SSI recipients begin on December 31, 2026. Some people receive both. SSA estimates the average retirement benefit rises by about $75 a month.
| Estimated average monthly benefit | Before the 3.6% COLA | After |
|---|---|---|
| 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 |
Figures are SSA’s estimates for January 2027.
How the COLA is set
By law, from the CPI-W.
The Social Security Act ties the COLA to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which the Bureau of Labor Statistics publishes. The 2027 COLA is based on the increase in the CPI-W from the third quarter of 2025 through the third quarter of 2026. If the index does not rise, there is no COLA. Automatic annual COLAs began in 1975; before that, benefits rose only when Congress passed a law.
The other 2027 figures
From SSA’s 2027 COLA fact sheet.
| Figure | 2026 | 2027 |
|---|---|---|
| Maximum earnings taxed for Social Security | $184,500 | $192,300 |
| Earnings for one quarter of coverage | $1,890 | $1,970 |
| Earnings test, under full retirement age | $24,480/yr ($2,040/mo) | $25,560/yr ($2,130/mo) |
| Earnings test, year you reach full retirement age | $65,160/yr ($5,430/mo) | $67,920/yr ($5,660/mo) |
| Substantial gainful activity, non-blind | $1,690/mo | $1,770/mo |
| Substantial gainful activity, blind | $2,830/mo | $2,950/mo |
| Trial work period month | $1,210 | $1,270 |
| Maximum benefit, retiring at full retirement age | $4,152/mo | $4,188/mo |
| SSI federal payment, individual | $994/mo | $1,029/mo |
| SSI federal payment, couple | $1,491/mo | $1,544/mo |
| SSI resource limit, individual / couple | $2,000 / $3,000 | $2,000 / $3,000 |
If you work while collecting
The earnings test and the payroll tax.
Before full retirement age, SSA withholds $1 of benefits for every $2 earned above $25,560 in 2027. In the year you reach full retirement age, it withholds $1 for every $3 above $67,920, counting only earnings in the months before you reach it. From the month you reach full retirement age, there is no limit.
On the paycheck side, the employee rate stays 7.65% — 6.2% for Social Security on earnings up to $192,300, and 1.45% for Medicare on all earnings — and the self-employed rate stays 15.3%. Earned income over $200,000 ($250,000 married filing jointly) owes an additional 0.9% Medicare tax.
Your notice, and Medicare
Online in late November, by mail in December.
People with a personal my Social Security account can read their COLA notice online starting in late November, up to three weeks before the paper notice. To see it online, someone without an account needs to create one at ssa.gov/myaccount and enroll in paperless notices by November 18. Everyone else gets the notice by mail in December. SSA says the notice is now one page, with the exact dates and dollar amounts of your new benefit and any deductions.
The 2027 Medicare premium appears in the same Message Center in late November. Any Medicare premium deducted from your benefit can change too, so the net increase can differ from 3.6%; the notice shows both the new benefit and the deductions.
Working out your own raise
Multiply by 1.036.
A $2,000 monthly benefit becomes about $2,072 before any change in deductions: $2,000 × 0.036 = $72. Your notice will show the exact amount. The percentage calculator does the multiplication for any benefit. For the tax side of retirement income, see the $6,000 senior deduction and the 2026 tax brackets.
3 SOURCESSource ledger
Check the basis.
- 01Social Security Administration — Social Security Announces 3.6 Percent Benefit Increase for 2027 (press release, October 14, 2026) ↗
- 02Social Security Administration — 2027 Cost-of-Living Adjustment (COLA) Fact Sheet ↗
- 03Social Security Administration — Cost-of-Living Adjustment (COLA) Information ↗
QUESTIONS THIS ANSWERS
Questions this answers
What is the Social Security COLA for 2027?
3.6 percent, announced by the Social Security Administration on October 14, 2026. SSA says the average retirement benefit rises by about $75 a month, from an estimated $2,095 to $2,170.
When will the 2027 Social Security increase start?
With benefits payable in January 2027 for nearly 72 million Social Security beneficiaries. Increased SSI payments for about 7.3 million people begin on December 31, 2026.
How much can I earn in 2027 without losing Social Security benefits?
If you are under full retirement age all year, $25,560; SSA withholds $1 of benefits for every $2 above it. In the year you reach full retirement age, $67,920, with $1 withheld for every $3 above it, counting only earnings before the month you reach it. From that month on there is no limit.