How much is the 2026 Social Security COLA?
The 2026 Social Security cost-of-living adjustment (COLA) is 2.8%, applied to benefits starting with the January 2026 payment. On a $2,000 monthly benefit that works out to about $56 more per month. For most people on Medicare, part of the raise is absorbed by the 2026 Part B premium, which rose $17.90 to $202.90 per month and is deducted from the Social Security check.
Last reviewed August 17, 2026 · Published August 17, 2026 · Mere Benefits Data Desk
The 2.8% applies to your benefit before Medicare deductions, so the raise you see deposited may be smaller than the headline number. The COLA also lifts more than just checks: the taxable wage cap, the earnings limits, and the maximum benefit all reset each January using related inflation adjustments. And if you have not claimed yet, you do not miss out. COLAs are credited to your future benefit starting at age 62 whether or not you have filed.
What the 2.8% COLA does to a monthly check
| Monthly benefit in Dec 2025 | 2.8% COLA increase | New 2026 benefit |
|---|---|---|
| $1,500 | +$42 | $1,542 |
| $2,000 | +$56 | $2,056 |
| $2,500 | +$70 | $2,570 |
| $3,000 | +$84 | $3,084 |
For 2026, the same adjustment machinery also set the taxable wage maximum at $184,500, the earnings limit at $24,480 for people under full retirement age, and the maximum benefit at full retirement age at $4,152 per month.
Why your deposit went up less than 2.8%
Most retirees have the Medicare Part B premium deducted directly from Social Security. For 2026, the standard Part B premium rose from $185.00 to $202.90 per month, an increase of $17.90. Run the example: a $2,000 benefit gains $56 from the COLA, then gives $17.90 of it back to the higher Part B premium. Net raise: $38.10 per month, or about 1.9% instead of 2.8%.
The smaller your benefit, the bigger the bite. On a $1,500 benefit, the $42 COLA loses $17.90 to Part B and nets $24.10, roughly 1.6%. People who pay income-related surcharges (IRMAA) on top of the standard premium may see even less, depending on their bracket. A protection called the hold harmless rule prevents the Part B increase from cutting your actual Social Security deposit below the prior year’s amount, but with a 2.8% COLA in 2026, most beneficiaries’ raises are large enough that the rule does not come into play.
How the COLA is set
The COLA is not a policy choice made each fall; it is a formula. The Social Security Administration compares the average Consumer Price Index for Urban Wage Earners (CPI-W) in the third quarter of the year against the same quarter a year earlier, and the percentage change becomes the COLA. For 2026, that comparison produced 2.8%, slightly higher than the 2.5% COLA for 2025. Here’s what I tell clients: budget from the net deposit, not the announced percentage, because Part B and any Part D premium withholding decide what actually lands in your bank account each month.
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