What is the Social Security COLA for 2027?

By Nicolas Straut

Published October 30, 20265 min read

Key takeaways

Social Security benefits rise 3.6% in 2027, which takes the average retired worker from $2,095 to $2,170 a month.¹
The wage base climbs to $192,300, so the most a worker pays in Social Security tax rises to $11,922.60.
If you're under full retirement age and working, you can earn $25,560 in 2027 before SSA withholds any benefits. The Tweed Social Security Claiming Plan shows what filing earlier or later does to your check.

In this article

How much will Social Security go up in 2027?
2026 vs 2027 Social Security changes
Step-by-step math: your 2027 benefit with the COLA
Social Security earnings limit for 2027
What the 2027 Medicare premium does to your raise
Does your state tax the 2027 raise?
Frequently asked questions about the 2027 Social Security COLA

The 2027 Social Security COLA is 3.6%, so the average retired worker gets about $75 more a month, from $2,095 to $2,170. SSA announced the raise in October 2026. The wage base, the earnings limit, the maximum benefit, and SSI rates all change with it, and this page shows each one next to its 2026 figure.

Social Security will go up 3.6% in 2027 for about 72 million beneficiaries.² In dollars, the raise depends on the size of your check. SSA's own estimates for January 2027 run from $59 more for the average disabled worker to $142 more for a widowed mother with two children.

Estimated average monthly Social Security benefits in January 2027, before and after the 3.6% COLA
Who gets the benefit	Before the COLA	After the COLA	Raise a month
All retired workers	$2,095	$2,170	$75
Aged couple, both receiving benefits	$3,238	$3,355	$117
Widowed mother and two children	$3,932	$4,074	$142
Aged widow(er) alone	$1,936	$2,005	$69
Disabled worker, spouse and one or more children	$2,970	$3,077	$107
All disabled workers	$1,642	$1,701	$59

These are averages, not your number. Your raise is 3.6% of your own benefit, worked out with SSA's rounding rules in the step-by-step math below.

Every dollar figure in the table rises in 2027, while the payroll tax rates stay the same.

Social Security figures for 2026 and 2027
Figure	2026	2027
Cost-of-living adjustment	2.8%	3.6%
Maximum taxable earnings (Social Security)	$184,500	$192,300
Most a worker pays in Social Security tax	$11,439.00	$11,922.60
Earnings needed for one quarter of coverage	$1,890	$1,970
Earnings test, under full retirement age	$24,480 a year ($2,040 a month)	$25,560 a year ($2,130 a month)
Earnings test, year you reach full retirement age	$65,160 a year ($5,430 a month)	$67,920 a year ($5,660 a month)
Maximum benefit, retiring at full retirement age	$4,152 a month	$4,188 a month
SSI federal payment, individual	$994 a month	$1,029 a month
SSI federal payment, couple	$1,491 a month	$1,544 a month
Substantial gainful activity, non-blind	$1,690 a month	$1,770 a month
Substantial gainful activity, blind	$2,830 a month	$2,950 a month
Trial work period	$1,210 a month	$1,270 a month
Payroll tax rate, employee	7.65%	7.65%
Payroll tax rate, self-employed	15.30%	15.30%

The 2027 wage base and the most you'll pay

The Social Security wage base for 2027 is $192,300, and the 6.20% employee tax stops there. That puts the most you'll pay at 6.20% × $192,300 = $11,922.60, up $483.60 from 2026. Medicare tax has no cap, so it keeps running on every dollar above the wage base.

The maximum benefit at full retirement age

The maximum Social Security benefit for a worker retiring at full retirement age in 2027 is $4,188 a month, $36 above 2026. That figure describes a new retiree's starting benefit, so it isn't 2026's maximum plus 3.6%, which would be $4,301.47. The Tweed Social Security Claiming Plan estimates your own benefit at each filing age.

Step-by-step math: your 2027 benefit with the COLA

SSA raises your primary insurance amount (PIA), the benefit you'd get at full retirement age, and then rounds down. SSA's Office of the Chief Actuary puts it this way in Application of COLA to a Retirement Benefit: It is the PIA that is increased by the COLA, with the result truncated to the next lower dime.³The monthly payment is then truncated to the next lower dollar.

A $1,800 benefit raised by the 2027 COLA
Step	Math	Result
1. Raise the PIA by 3.6%	$1,800 × 1.036	$1,864.80
2. Round down to the dime	$1,864.80 to the next lower 10 cents	$1,864.80
3. Round the payment down to the dollar	$1,864.80 to the next lower dollar	$1,864

Say your benefit at full retirement age is $1,800 a month. In 2027 you'd receive $1,864, a raise of $64, before any Medicare premium comes out. If you claimed early or late, SSA raises the PIA first and then applies your reduction or credit, so your raise can differ slightly from 3.6% of the check you get now.

The 2027 Social Security earnings limit is $25,560 if you're under full retirement age all year. Above it, SSA withholds $1 of benefits for every $2 you earn.⁴

Example of a working retiree under full retirement age

Take a 63-year-old who claimed at 63, gets $1,800 a month, and earns $40,000 in wages in 2027. She's $14,440 over the limit, so SSA withholds $7,220 of her $21,600 in yearly benefits. Under the 2026 limit the same pay would have cost her $7,760, so the higher limit leaves her $540 more in 2027.

The year you reach full retirement age

The limit rises to $67,920 in the year you reach full retirement age, and SSA withholds $1 for every $3 above it. Only earnings before the month you reach full retirement age count. Withheld money isn't lost, because SSA recalculates your benefit at full retirement age to credit the months it held back.

What the 2027 Medicare premium does to your raise

Your Part B premium is taken out of your check before SSA rounds the payment down to the dollar.⁵ CMS hadn't published the 2027 Part B premium when this page went up, so Tweed doesn't show a net raise yet. Any rise in the premium takes part of the 3.6% back.

Higher earners pay more for Part B, and the IRMAA brackets for 2026 show where those surcharges start.

Does your state tax the 2027 raise?

Your state taxes the 2027 raise only if it taxes Social Security at all, and most states don't. The table of state taxes on retirement income covers Social Security, pensions, and IRA withdrawals state by state.

California, New York, and Virginia leave Social Security alone but tax other retirement income. Florida and Texas have no personal income tax.

A bigger check also changes how much you need from savings. The guide to how much you need to retire subtracts Social Security first, and the Tweed Social Security Claiming Plan shows the age that pays you the most.

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Find the Social Security age that pays you the most

Open the claiming plan

Frequently asked questions about the 2027 Social Security COLA

When will I get my 2027 COLA notice?

SSA mails 2027 COLA notices in early December, and the notice lists your new monthly amount. To read yours online instead, you need a my Social Security account and must enroll by November 18, 2026. Sign up a few days early so the account is ready in time.

When do SSI payments go up?

SSI payments go up with the payment dated December 31, 2026, for about 7.3 million recipients. SSI recipients see the higher amount before anyone else. Social Security benefits take the raise starting in January 2027, for about 72 million people, so a person who gets both sees two increases.

How is the Social Security COLA calculated?

The Social Security COLA is calculated from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). SSA measures the rise in the CPI-W from the third quarter of 2025 to the third quarter of 2026, and that rise becomes the 2027 COLA. A year with faster price growth produces a larger raise.

Can the COLA make more of my Social Security taxable?

Yes, the COLA can make more of your Social Security taxable, because a bigger benefit raises the provisional income the IRS tests. Up to 85% of benefits is taxable above $34,000 for single filers and $44,000 for joint filers. If your income sits near either line, a raise of a few dollars a month can tip part of it into tax.

Does working after full retirement age reduce my benefit?

No, working after full retirement age doesn't reduce your benefit. The earnings test stops the month you reach full retirement age, so you can earn any amount from then on with nothing withheld. If you haven't claimed yet, waiting past full retirement age still raises your benefit until age 70.

Sources

https://www.ssa.gov/news/en/cola/factsheets/2027.html
https://www.ssa.gov/news/en/mip/2026-10-01-f.html
https://www.ssa.gov/oact/cola/colaapplic.html
https://www.ssa.gov/benefits/retirement/planner/whileworking.html
https://www.ssa.gov/OP_Home/handbook/handbook.07/handbook-0738.html

Figures are the 2027 amounts in SSA's 2027 COLA fact sheet. Your own new benefit is on the COLA notice SSA sends you.

Tweed provides educational estimates, not financial advice. Nicolas Straut is a personal finance writer, not a financial advisor. Confirm your specific situation with a qualified financial professional.

Nicolas Straut

Personal finance writer, former Forbes contributor and This Week in Fintech writer. He isn't a financial advisor or a CPA.

nicstraut.com