Social Security Changes Coming in January 2027: What to Know

Millions of Americans will receive higher Social Security payments in January 2027, when a 3.6 percent cost-of-living adjustment (COLA) takes effect, according to the Social Security Administration (SSA). Changes to earnings limits, the taxable earnings cap, and disability thresholds will also take effect.

The increase is expected to add about $75 a month to the average retirement benefit, bringing it to an estimated $2,170. Nearly 72 million Social Security beneficiaries will receive the adjustment, while about 7.3 million Supplemental Security Income recipients will see higher payments beginning Dec. 31. Some people receive both benefits.

How Much Will Social Security Benefits Increase?

The maximum monthly benefit for a worker retiring at full retirement age will increase from $4,152 to $4,188.

For people receiving Supplemental Security Income (SSI), the maximum federal monthly payment will increase from $994 to $1,029 for individuals and from $1,491 to $1,544 for eligible couples.

Other recipients will also see increases. The estimated average monthly benefit for retired couples who both receive Social Security will rise from $3,238 to $3,355, while the average benefit for a surviving spouse receiving benefits alone will increase from $1,936 to $2,005.

What Changes for Working Americans?

People collecting Social Security before reaching full retirement age can earn more without having benefits withheld.

The annual earnings limit for workers who remain below full retirement age throughout 2027 will increase from $24,480 to $25,560. Social Security withholds $1 in benefits for every $2 earned above that threshold.

For workers reaching full retirement age in 2027, the earnings limit will rise from $65,160 to $67,920. Social Security withholds $1 for every $3 earned above that amount, counting only earnings before the month they reach full retirement age.

Once reaching full retirement age, there is no earnings limit while collecting retirement benefits. Full retirement age is 67 for those born in 1960 or later.

Will Social Security Taxes Change?

The maximum annual earnings subject to Social Security payroll taxes will increase from $184,500 to $192,300 in 2027, according to the Social Security Administration.

The Social Security tax rate will remain unchanged from 2026 at 6.2 percent for employees and employers. The self-employed rate is also unchanged, with workers paying 12.4 percent.

Workers will also need to earn more to qualify for Social Security credits.

Starting in 2027, workers must earn at least $1,970 to receive one Social Security credit, up from $1,890 this year. Workers can earn up to four credits per year. Most people need 40 credits—about 10 years of work—to qualify for Social Security retirement benefits.

What Changes for Disability Benefits?

People receiving Social Security disability benefits will also see changes in 2027. The average monthly benefit for disabled workers is expected to increase from $1,642 to $1,701, according to the Social Security Administration.

The monthly earnings threshold used to determine substantial gainful activity will rise from $1,690 to $1,770 for nonblind individuals and from $2,830 to $2,950 for blind individuals.

The monthly earnings threshold for a trial work period, during which disability beneficiaries can test their ability to work, will increase from $1,210 to $1,270.The amount required for one credit will increase.

Are SSI Eligibility Limits Changing?

Supplemental Security Income (SSI) payments will increase in 2027, but the limits on how much money recipients can have in savings and other countable assets will remain unchanged at $2,000 for individuals and $3,000 for couples.

SSI is a monthly payment for people with limited income and resources who are 65 or older—or blind, or have a qualifying disability.

Students younger than 22 who receive SSI and have a job will be able to exclude more of their earnings in 2027. The monthly exclusion is set to increase from $2,410 to $2,500, and the annual limit will rise from $9,730 to $10,080.

When Will Recipients Learn New Benefit Amount?

Social Security beneficiaries who sign up for a personal account and choose paperless notices by Nov. 18 can view their cost-of-living adjustment details online beginning in late November.

Those who get paper notices will receive their letters in the mail in December, the Social Security Administration said. The notices will include each recipient’s new payment amount and any deductions, such as Medicare premiums.

Why Are Benefits Increasing?

Social Security’s annual adjustment is tied to inflation, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers.

The 3.6 percent increase for 2027 follows a 2.8 percent adjustment in 2026.