Social Security sets next year's increase at 3.6 percent
Published Date: 10/26/2026
Notice
Summary
Starting December 2026, Social Security benefits will go up by 3.6%, giving folks a nice boost in 2027. This increase affects monthly payments for individuals, couples, and special groups like WWII veterans, plus changes some income limits and fees. If you get Social Security or Supplemental Security Income, expect more money and updated rules next year!
Analyzed Economic Effects
16 provisions identified: 12 benefits, 2 costs, 2 mixed.
3.6% Social Security Cost‑of‑Living Increase
Social Security (title II) and Supplemental Security Income (title XVI) benefits increase by 3.6 percent beginning December 2026 (benefits payable January 2027). The increase is based on the CPI change from the third quarter of 2025 to the third quarter of 2026.
WWII Veteran Special Benefit Amount
The special benefit for certain World War II veterans under title VIII will have a maximum monthly amount of $771.75 for 2027 (75 percent of the 2027 Federal SSI individual rate).
Student Earned Income Exclusion Raised
For 2027, the student earned income exclusion is $2,500 per month but not more than $10,080 for the year for students who are blind or have a disability and regularly attend school. These amounts result from the 3.6 percent increase.
SSI Monthly Payment Amounts Updated
Federal SSI monthly payments for 2027 will be $1,029 for an eligible individual, $1,544 for an eligible individual with an eligible spouse, and $516 for an essential person. These amounts reflect the 3.6 percent increase and are effective for payments made for January 2027 (paid December 31, 2026).
OASDI Taxable Maximum: $192,300
The Old‑Age, Survivors, and Disability Insurance (OASDI) contribution and benefit base for remuneration paid in 2027 is $192,300. This is the maximum annual earnings subject to OASDI payroll taxes and used for computing maximum benefit credits in 2027.
Retirement Earnings Test Exempt Amounts Raised
For 2027 the monthly retirement earnings test exempt amounts are $2,130 for beneficiaries who will attain Normal Retirement Age after 2027, and $5,660 for those who attain Normal Retirement Age in 2027. Annual exempt amounts are 12 times the monthly amounts.
PIA Bend Points for New Beneficiaries Updated
The primary insurance amount (PIA) formula bend points for workers who first become eligible in 2027 are $1,340 and $8,077. For 2027 eligibles, the PIA is computed as 90% of the first $1,340 of AIME, 32% of AIME between $1,340 and $8,077, and 15% above $8,077.
Family Maximum Bend Points Updated
The bend points used to compute maximum family benefits for workers who become eligible in 2027 are $1,712, $2,471, and $3,223. These values are used in the formula that limits the total monthly benefits payable to a worker's family in 2027.
Old‑Law Contribution and Benefit Base Set at $142,800
The 'old‑law' contribution and benefit base used for certain computations (including special minimum benefits, Railroad Retirement, and PBGC calculations) is $142,800 for 2027.
Substantial Gainful Activity (SGA) Levels Raised
For 2027 the monthly SGA amount is $2,950 for statutorily blind individuals and $1,770 for non‑blind individuals with a determined disability. Earning above these amounts generally indicates engagement in substantial gainful activity.
Special Minimum PIA Table Updated
The special minimum Primary Insurance Amounts (PIAs) and maximum family benefits payable for December 2026 were revised for individuals with 11–30 years of coverage; examples include $55.40 PIA and $84.80 family benefit for 11 years, up to $1,164.10 PIA and $1,748.30 family benefit for 30 years.
Representative Payee Fee Limits Increase
The monthly dollar fee limit for services performed by a qualified organization as a representative payee increases to $59 per month, and to $110 per month where the beneficiary is disabled with alcoholism or drug addiction and incapable of managing benefits, for 2027.
User Fee Cap for Direct Payment of Fees
Beginning in December 2026, the dollar assessment (user fee) limit applied when SSA pays authorized representative or court-awarded attorney fees directly from a claimant's past‑due benefits is $128.
Quarter of Coverage Earnings Increased to $1,970
The earnings needed to be credited with a quarter of coverage in 2027 is $1,970. Quarters of coverage are used to determine whether a worker is insured for Social Security benefits.
Trial Work Period Threshold Set at $1,270
In 2027, any month in which a beneficiary's earnings exceed $1,270 counts as a trial work period month. The trial work period allows disability beneficiaries to test work while still receiving benefits.
Domestic Worker and Election Worker Coverage Thresholds
For 2027 the domestic employee coverage threshold is $3,100 and the election official/worker coverage threshold is $2,700; these are the minimum earnings that trigger Social Security and Medicare coverage for those workers.
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Department and Agencies
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