Social Security COLA 2027: Your 3.6% Raise Explained

More than 70 million Americans will see bigger Social Security and SSI payments in 2027. The Social Security Administration announced a 3.6% cost-of-living adjustment (COLA), up from 2.8% for 2026. It is the largest increase in several years. Here is what it means for your monthly check.

What is the COLA?

The cost-of-living adjustment is an annual increase to Social Security and Supplemental Security Income (SSI) benefits that helps them keep up with inflation. By law, it is based on the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), comparing the average for July, August and September with the same months a year earlier.

How much will your check increase?

The SSA estimates the average retired worker will receive about $75 more per month starting in January 2027. Disabled workers and survivors will see an average increase of about $59 per month.

To estimate your own raise, multiply your current monthly benefit (before Medicare deductions) by 0.036:

Rounded estimates. Your exact amount appears in your COLA notice, available in your my Social Security account at ssa.gov.

When does the increase arrive?

• Social Security: the increase starts with benefits paid in January 2027. Your payment date still depends on your birth date (second, third or fourth Wednesday) or when you started benefits.
• SSI: the increased payment arrives on December 31, 2026, because January 1 is a federal holiday.

How Medicare premiums affect your raise

If you are on Medicare, your Part B premium is usually deducted straight from your Social Security check, so the net raise can be smaller than 3.6%. The 2027 Part B premium had not been officially announced at the time of writing. The Medicare Trustees projected about $209.50 per month, up from $202.90 in 2026. If that projection holds, about $6.60 of a typical raise would go to the higher premium.

A protection called the hold harmless provision prevents most beneficiaries' net Social Security payment from going down because of a Part B increase. Higher-income beneficiaries who pay income-related surcharges (IRMAA) are not protected by it.

Will the raise affect your taxes?

Possibly. Up to 85% of Social Security benefits can be taxable depending on your "combined income" (adjusted gross income + nontaxable interest + half of your benefits). Those thresholds are not adjusted for inflation, so COLA increases can gradually push more retirees over them. Note that taxpayers 65 and older may be able to claim the new $6,000 senior deduction from 2025 through 2028, which can offset some of that tax.

What to do now

1. Check your COLA notice in your my Social Security account (notices are typically posted online in early December).
2. Update your budget. If prices you pay most often, like rent, insurance or groceries, are rising faster than 3.6%, plan for the gap. See the 50/30/20 budget.
3. Review your Medicare coverage during open enrollment (October 15 to December 7). A plan change can save more than the COLA adds. Read Medicare open enrollment explained.
4. Adjust tax withholding if needed with Form W-4V, especially if the higher benefit could make more of it taxable.

Frequently asked questions

Do I need to apply for the COLA?

No. The increase is automatic for everyone receiving Social Security or SSI.

Does the COLA apply if I haven't started benefits yet?

Yes, in effect. Once you turn 62, COLAs are applied to your benefit calculation even if you haven't claimed yet.

Why is my raise smaller than my neighbor's?

The COLA is a percentage, so larger benefits get larger dollar increases. Medicare premiums, IRMAA surcharges and tax withholding also change the net amount.

Sources: Social Security Administration 2027 COLA announcement (October 2026); 2026 Medicare Trustees Report projections.