Millions of Americans will be impacted by three significant changes to Social Security in the United States in 2026. Certain employees will see a slight increase in their paychecks, while others may see a decrease in benefits. Payroll taxes are used to fund Social Security, a federal program that provides retirement, disability, and survivor benefits.
However, since it is the primary source of income for many older Americans in retirement, even minor adjustments are significant; these rules can affect how much you get, pay in tax, and whether it’s smart to work while collecting benefits.
A higher cost-of-living adjustment (COLA), a higher wage cap for Social Security taxes, and new earnings limits that may lower benefits for individuals who work before reaching full retirement age have all already been announced by the Social Security Administration (SSA) for 2026.
1. Bigger monthly checks in 2026
Social Security and Supplemental Security Income (SSI) benefits will be increased in 2026. This is because the SSA announced a 2.8% cost-of-living adjustment (COLA) in October.
That 2.8% increase is less than the average 3.1% increase over the previous ten years, but slightly more than the 2.5% COLA for 2025. However, it means more money in their monthly checks to help retirees and SSI recipients keep up with rising costs.
This is how that looks in real numbers beginning in January 2026:
Social Security (average estimates)
- All retired workers: from $2,015 to $2,071
- Aged couple, both receiving benefits: from $3,120 to $3,208
- Widowed mother with two children: from $3,792 to $3,898
- Aged widow(er) alone: from $1,867 to $1,919
- Disabled worker, spouse and one or more children: from $2,857 to $2,937
- All disabled workers: from $1,586 to $1,630
Supplemental Security Income (federal maximums)
- Individual: from $967 to $994
- Couple: from $1,450 to $1,491
That average monthly increase of roughly $56 won’t make many retirees wealthy, but it can help with prescription medications, groceries, and utilities.
2. New rules for workers: higher wage cap and higher earnings limits
The second and third changes affect those who are still working, especially those with higher incomes and those who make Social Security claims before they reach full retirement age (FRA).
Higher wage cap for Social Security tax
The wage cap, also known as the maximum taxable earnings limit, will rise in 2026. The 6.2% Social Security payroll tax is applied to this portion of your income.
-
In 2025, the cap is $176,100.
-
In 2026, it will rise to $184,500.
In 2026, income over $184,500 will not be subject to Social Security taxes. However, everything up to $184,500 will be. Employers match the 6.2% of income that employees pay in Social Security taxes up to the cap.
Additionally, employers must match the 1.45% Medicare tax on all earnings (with no cap). Because of the higher wage cap, high-income workers may see a slight increase deducted from their paychecks in 2026.
3. Higher earnings limits for early retirees
Those who continue to work and receive Social Security before reaching full retirement age are impacted by the third modification. Social Security allows you to work and get benefits, but part of your benefit is temporarily withheld if you make more than a certain amount before your FRA.
In 2026, those earnings limits are increasing:
-
For people younger than full retirement age all year:
-
The limit goes from $23,400 to $24,480.
-
If you earn more than that, Social Security will withhold $1 in benefits for every $2 you earn above the limit.
-
-
For people who reach full retirement age in 2026:
-
The limit goes from $62,160 to $65,160.
-
In this case, Social Security will withhold $1 in benefits for every $3 you earn above the limit, but only until the month you hit FRA.
-
There is no earnings cap once you reach full retirement age for the full year. Your Social Security check won’t be reduced if you work and make as much money as you like.