October 24, 2025
If you are one of the 75 million American’s who get Social Security or SSI benefits or both – you are going to see a nearly 3% increase in your monthly check starting next year. And if you don’t yet receive Social Security benefits, you are going to see some changes in the amount of money you contribute to Social Security in every single one of your paychecks. I’ll tell you about that in a second but first – the cost of living adjustment was announced by the Social Security Administration today. If we want to get technical – the increase for Social Security and SSI beneficiaries will be 2.8% in 2026. The Social Security Administration says that shakes out to about $56 more a month.
Of course the cost of living adjustment – or COLA – is based on inflation. Every single year the US government uses the inflation data it collects throughout the year – like the consumer price index that I reported on earlier today – to determine how much more these beneficiaries need to keep up. Now – this 2026 increase is a bigger cola increase than recipients saw in 2025 but it’s less than the average increase of 3%.
If you are a Social Security beneficiary you will start to see that 2.8% increase in your January check and if you are one of the 7.5 million people who receive SSI benefits you’ll see this increase in your December 31st check this year. Social Security will officially begin notifying you about your exact benefit by mail in early December or if you have a Social Security online account you will be able to see your exact benefit in late November.
Now – for the rest of us who do not yet receive Social Security benefits. As you know when you look at your paycheck you see a deduction for Social Security. Federal law says everyone must contribute. In 2025 every working person must contribute 6.2-percent of their paycheck to the Social Security tax. But the law also says you only contribute 6.2% up to a certain amount of your income. In 2025 that limit was $176,100. So anything you made over that – was not subject to that 6.2%. Well, according to today’s COLA notice, the Social Security Administration says that taxable minimum is increasing. Now you will be taxed 6.2% up to $184,500 in 2026.
Read more from the Social Security Administration here and here.
Read the Facts Sheet for worker Social Security tax contributions here.
