TaxWrenWhat changed
- Social Security and SSI payments rise 3.6% in 2027, the Social Security Administration announced on October 14, 2026. The average retired worker's benefit goes from $2,095 to about $2,170 a month.
- The maximum earnings subject to Social Security tax rise from $184,500 to $192,300. An employee at or above the cap pays up to $11,922.60 in 2027, $483.60 more than in 2026; the self-employed up to $23,845.20.
- The tax rates don't change. Working beneficiaries under full retirement age can earn $25,560 before benefits are withheld.
On this page
Social Security benefits will rise 3.6% in 2027, the Social Security Administration announced on October 14, 2026. At the same time, the share of wages taxed for Social Security goes up: the 2027 cap is $192,300, up from $184,500 in 2026. Retirees see the increase in their January payments; workers who earn more than $184,500 pay Social Security tax on $7,800 more of their pay.
What changes for workers
The tax rates stay the same in 2027: 6.2% for Social Security and 1.45% for Medicare from an employee, matched by the employer, and 12.4% plus 2.9% for the self-employed. Only the cap on Social Security wages moves.
| 2026 | 2027 | |
|---|---|---|
| Maximum earnings taxed for Social Security | $184,500 | $192,300 |
| Most Social Security tax an employee pays | $11,439 | $11,922.60 |
| Most Social Security tax a self-employed person pays | $22,878 | $23,845.20 |
| Earnings for one quarter of coverage | $1,890 | $1,970 |
Source: SSA 2027 COLA fact sheet (rates unchanged: 7.65% employee, 15.3% self-employed combined).
Anyone who earns less than $184,500 pays exactly the same rate as before on every dollar. For higher earners the extra tax is small: up to $483.60 for an employee and $967.20 for a self-employed person. Someone paid $300,000 a year every two weeks reaches the cap with paycheck 17 in 2027 instead of paycheck 16, so Social Security tax comes out of one more paycheck before take-home pay rises for the rest of the year. Medicare tax has no cap, and the 0.9% Additional Medicare tax still starts at $200,000 of wages ($250,000 married filing jointly).
Our guide to the Social Security tax cap explains how the cap works with two jobs and when the excess comes back as a credit. The take-home pay calculator uses the 2026 cap for 2026; the 2027 figures are added with the 2027 tax year.
What changes for people receiving benefits
The 3.6% increase is based on the rise in the Consumer Price Index for urban wage earners (CPI-W) from the third quarter of 2025 to the third quarter of 2026. It applies to Social Security benefits payable in January 2027 and to SSI.
| Monthly amount | 2026 | 2027 |
|---|---|---|
| Average retired worker | $2,095 | $2,170 |
| Aged couple, both receiving benefits | $3,238 | $3,355 |
| Average disabled worker | $1,642 | $1,701 |
| Maximum benefit at full retirement age | $4,152 | $4,188 |
| SSI, individual | $994 | $1,029 |
| SSI, couple | $1,491 | $1,544 |
Average benefits are SSA estimates for January 2027, before and after the COLA.
Working while collecting benefits
If you claim benefits before full retirement age and keep working, SSA withholds part of your benefit when your earnings pass a limit. For 2027 the limit is $25,560 (up from $24,480), with $1 withheld for every $2 above it. In the year you reach full retirement age it is $67,920 (up from $65,160), counting only months before your birthday month, with $1 withheld for every $3 above it. From the month you reach full retirement age there is no limit.
Sources
- Social Security Administration: 2027 Cost-of-Living Adjustment (COLA) Fact Sheet (official)
- Social Security Administration: Contribution and benefit base (official)
Figures come from the official documents listed above. See our methodology and editorial policy. This article is general information, not tax advice.
Frequently asked questions
What is the Social Security COLA for 2027?
3.6%, based on the rise in the CPI-W from the third quarter of 2025 to the third quarter of 2026. It applies to Social Security benefits from January 2027 and to SSI payments.
What is the Social Security wage base for 2027?
$192,300, up from $184,500. Wages and self-employment earnings above it pay no Social Security tax; Medicare tax has no cap.
How much can I earn while collecting Social Security in 2027?
If you are under full retirement age all year, $25,560; SSA withholds $1 of benefits for every $2 above it. In the year you reach full retirement age the limit is $67,920 for the months before that birthday, with $1 withheld for every $3 above it. From the month you reach full retirement age there is no limit.
Will the COLA make more of my benefits taxable?
It can. Up to half of your benefits become taxable once half your benefits plus your other income pass $25,000 ($32,000 married filing jointly). Those amounts are set by law and are not adjusted for inflation, so a higher benefit can push more retirees over them.
Run your own numbers
- Take-home pay calculator
Gross to net salary after federal, FICA, state and local taxes.
- Self-employment tax calculator
Self-employment tax (Schedule SE): Social Security and Medicare on net profit, the wage base with W-2 wages, the Additional Medicare tax and the deduction for half.
- Income tax calculator
Federal and state income tax owed for 2026.