Big changes are coming to Social Security in 2026: 5 important updates
Nearly 70 million Americans rely on Social Security to make ends meet. When benefit amounts change, it’s crucial for recipients to understand how and why, so they can plan their monthly budgets.
In 2026, big changes are coming to Social Security benefits — primarily driven by policy changes, cost of living adjustments and increasing healthcare costs.
But these aren’t the only areas to keep an eye on in the year ahead.
Other areas of notable change include updates to the SSA’s earnings test limit, payroll tax increases and a maximum benefit increases.
Here’s what to know about the updates, and how they may affect you.
Higher monthly benefits
Every year, the Social Security Administration calculates how inflation affects the cost of living and then adjusts benefits
In October, the agency announced 2026 COLA is increasing 2.8% — representing an average $56 monthly increase.
While nearly 71 million beneficiaries will see that increase come January, SSI recipients may see that increase as soon as Dec. 31.
Rising Medicare costs will largely offset COLA
Although Social Security checks are increasing, so are healthcare costs — including the standard monthly premium for Medicare, which often comes directly out of Social Security payments.
In 2026, the standard premium for Medicare Part B will increase from $185 per month to $202.90 — nearly $18.
The Part B deductible, which is what you pay before benefits kick in, will also increase by $26.
According to Investopedia, what looked like a ”monthly boost,” in COLA will shrink to about $39 after accounting for changes in the standard monthly premium.
Payroll taxes
The payroll maximum, or Social Security wage base, is the maximum earnings amount subjected to Social Security payroll tax. Earnings above that threshold are not taxed for Social Security.
In 2026, the wage base increases from $176,100 to $184,500 — meaning more income is being subjected to Social Security taxes and high-income earners will pay more taxes.
Earnings test limit
Individuals collecting Social Security benefits before full retirement age, which is 67, can now earn up to $24,480 before their benefits are reduced — up from $23,400 in 2025.
This means if you earn more than $24,480, SSA will withhold $1 in benefits for every $2 you earn above that limit.
Those who reach full retirement age in 2026 have a higher limit of $65,160, up from $62,160, with benefits reduced at a slower rate until their birthday month.
Once beneficiaries are at full retirement age for the entire year, there is no earnings limit, allowing them to work without affecting their Social Security payments.
Maximum benefit
In 2026, the maximum benefit someone can receive from Social Security is increasing from $5,108 to $5,251.
However, most recipients receive much less.
According to Social Security data, the average monthly benefit for retired workers sits at $2,013.32 as of November.
Benefit amounts are based on when a worker retires and how much they earned.
Those who earn more during their careers and retire later in life have higher maximum benefit amounts.