Social Security COLA Rises 2.8% for 2026; Taxable Wage Base and Earnings Limits Increase
The Social Security Administration announced a 2.8% cost-of-living adjustment for 2026, along with higher earnings limits and an increased taxable wage base that affect both beneficiaries and workers paying into the system.
The Social Security Administration announced that Social Security benefits, including Old-Age, Survivors, and Disability Insurance (OASDI), and Supplemental Security Income (SSI) payments for 75 million Americans will increase 2.8 percent in 2026.
Benefit Increases
Nearly 71 million Social Security beneficiaries will see a 2.8 percent COLA beginning in January 2026. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2025. On average, Social Security retirement benefits will increase by about $56 per month starting in January. The average retired worker will see their monthly check increase from $1,976 to $2,032 – a boost of about $56.
Earnings Limits and Wage Base
The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $184,500. The earnings limit for workers who are younger than full retirement age will increase to $24,480. Changes to Social Security include an update to the full retirement age, an increase in wages required to earn credits, and a higher taxable wage base and earnings limit.
Context
Reflecting persistent inflation, 2026 will be the fifth straight year with a COLA of at least 2.5 percent, the longest such streak since the 1990s. The COLA is intended to help Social Security benefits keep pace with inflation over time.
For Expats and New Workers
If you are employed in the United States, your employer will withhold 6.2% of your wages (up to the new $184,500 limit) for Social Security taxes. If you are self-employed, you will owe both the employee and employer portions. These higher thresholds mean workers earning more than $184,500 in 2026 will pay Social Security tax on a higher portion of income. If you are already receiving Social Security retirement or disability benefits, expect a slightly higher monthly payment starting in January 2026. Plan your household budget accordingly if you rely on Social Security.
Sources
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