--- title: "Social Security benefits rise 3.6% in 2027, and the tax cap goes to $192,300 | TaxWren" description: "SSA set a 3.6% COLA for 2027. Earnings subject to Social Security tax rise from $184,500 to $192,300, so top earners pay up to $483.60 more." url: https://taxwren.com/news/social-security-cola-and-wage-base-increase --- [Tax news](/news) · October 16, 2026 · Paychecks # Social Security benefits rise 3.6% in 2027, and the tax cap goes to $192,300 SSA set a 3.6% COLA for 2027. Earnings subject to Social Security tax rise from $184,500 to $192,300, so top earners pay up to $483.60 more. By [the TaxWren team](/about#who-writes) · Published October 16, 2026, 5:00 AM EDT · 3 min read ## What 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. 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](/blog/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](/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. Tip Self-employed with net earnings near or above $184,500? Plan your 2027 quarterly payments with the higher cap: the [self-employment tax calculator](/self-employment-tax-calculator) and the [estimated tax calculator](/estimated-tax-calculator) show the 2026 figures today and switch to 2027 with the new tax year. ## Sources 1. Social Security Administration: [2027 Cost-of-Living Adjustment (COLA) Fact Sheet](https://www.ssa.gov/news/en/cola/factsheets/2027.html) (official) 2. Social Security Administration: [Contribution and benefit base](https://www.ssa.gov/oact/cola/cbb.html) (official) Figures come from the official documents listed above. See our [methodology](/methodology) and [editorial policy](/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](/take-home-pay-calculator) Gross to net salary after federal, FICA, state and local taxes. - [Self-employment tax calculator](/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](/income-tax-calculator) Federal and state income tax owed for 2026. ## More tax news - [IRS proposes premium tax credit rules: full repayment of excess advance payments](/news/premium-tax-credit-proposed-rules) - [Proposed IRS rules would stop refundable credit payouts to some immigrants](/news/refundable-credits-qualified-alien-proposed-rules) - [Treasury will open a Trump account automatically for every eligible child](/news/trump-accounts-automatic-enrollment)