As Americans look ahead to the new year, several key Social Security updates are scheduled to begin in January 2026. These changes affect monthly benefit amounts, payroll taxes for higher earners, and how much retirees can earn from work before their checks are temporarily reduced.
Here’s what to expect starting January 2026:
1) Benefits Will Rise With a 2.8% COLA
Social Security and Supplemental Security Income (SSI) recipients will receive a 2.8% Cost-of-Living Adjustment (COLA) beginning in January. The goal is to help benefits keep up with the cost of everyday expenses.
According to published examples from the Social Security Administration, the adjustment would raise:
- The average monthly retirement benefit from $2,015 to $2,071
- The maximum benefit at full retirement age from $4,018 to $4,152
- The average SSDI (disability) payment from $1,586 to $1,630
While the exact dollar increase differs from person to person, the 2.8% increase applies across the board.
2) More Earnings Will Be Subject to Social Security Payroll Tax
Workers who pay into Social Security will see the wage cap for payroll taxes increase. The taxable maximum is set to move from $176,100 in 2025 to $184,500 in 2026.
In simple terms: if you earn a high salary, a larger portion of your wages will be taxed for Social Security next year.
3) Earnings-Test Limits Are Increasing for People Working While Collecting Benefits
If you collect Social Security and continue working before reaching full retirement age, the “earnings test” may temporarily reduce your benefits. These limits typically rise most years, and 2026 is no different.
For 2026:
- If you’ll be under full retirement age for all of 2026, the annual limit rises to $24,480 (up from $23,400).
- If you’ll reach full retirement age in 2026, you can earn up to $65,160 that year before reductions (up from $62,160).
- If you’re already at full retirement age, the earnings test doesn’t apply.
4) The Maximum Possible Social Security Check Will Increase
The top possible monthly Social Security benefit is expected to rise from $5,108 per month in 2025 to $5,251 in 2026—which works out to nearly $2,000 more per year for those who qualify for the maximum.
But hitting that maximum benefit requires meeting strict criteria, typically including:
- At least 35 years of work history (with those years among your highest-earning)
- Delaying benefits until age 70
- Earning at or above the maximum taxable earnings limit consistently during your career
Because those conditions are hard to meet, only a small percentage of workers qualify—but those who do will see a noticeable boost in 2026.
