Social Security COLA Increase

Cross References

• www.ssa.gov

The Social Security Administration has announced that Social Security and Supplemental Security Income (SSI) benefits will increase by 2.8% for 2026. The chart below identifies key figures that are affected by the annual Cost-of-Living Adjustment (COLA) for the years 2024 through 2026.

Social Security and Medicare Highlights

Social Security Benefits (COLA) increase. 2.8% 2.5% 3.2% Maximum earnings subject to Social Security tax $184,500.00 $176,100.00 $168,600.00 Medicare tax No Limit No Limit No Limit Maximum Social Security tax Employee $11,439.00 $10,918.20 $10,453.20 Self-employed $22,878.00 $21,836.40 $20,906.40 Maximum Medicare tax No Limit No Limit No Limit Social Security tax rate Employee 6.20% 6.20% 6.20% Self-employed 12.40% 12.40% 12.40% Medicare tax rate 5 Employee 1.45% 1.45% 1.45% Self-employed 2.90% 2.90% 2.90% Earnings needed for one quarter of coverage. $1,890.00 $1,810.00 $1,730.00 Maximum earnings and still receive full Social Security benefits. Under full retirement age 1 $24,480.00 $23,400.00 $22,320.00 Year of full retirement age $65,160.00 $62,160.00 $59,520.00 2 Full retirement age No Limit No Limit No Limit 3 Maximum Social Security monthly benefits at full $4,152.00 $4,018.00 $3,822.00 retirement age. Medicare premiums 4 Part A (per month) $518.00 $505.00 Part B (per month) $185.00 $174.70 Hospital deductible $1,676.00 $1,632.00 $1 in benefits is withheld for every $2 in earnings above limit. The Department of Health and Human 1 4 2 Applies only to earnings for months prior to attaining full Services has not yet announced Medicare retirement age. $1 in benefits is withheld for every $3 in premium changes for 2026. Standard earnings above the limit. monthly premiums are listed for 2025 A person born in 1957 reached full retirement age in 2023 or and 2024. High income taxpayers may be 3 2024 at age 66 and 6 months. A person born in 1958 reached subject to higher premiums. full retirement age in 2024 or 2025 at age 66 and 8 months. Medicare tax rate increases by 0.9% 5 A person born in 1959 reaches full retirement age in 2025 on wages and SE income above the or 2026 at age 66 and 10 months. A person born after 1959 threshold amount, plus 3.8% on unearned reaches full retirement age at age 67. income above the threshold amount.