At a Glance
- 2.8% cost-of-living raise starts in January 2026, adding roughly $56 to average monthly checks.
- Medicare Part B premiums jump 9.7% to $202.90, trimming the raise for most seniors.
- New $6,000 tax deduction for recipients 65+ could wipe out federal taxes on benefits for many.
Why it matters: These changes will directly alter how much money lands in bank accounts for more than 70 million Americans.
More than 70 million Americans who collect Social Security will see fresh rules in 2026. Monthly checks will rise, but so will Medicare costs and the amount seniors can earn while working. Below is a quick guide to every adjustment that matters.
Payment Schedule for January 2026
The Social Security Administration staggers deposits based on birth dates:
- Born 1st-10th: January 14
- Born 11th-20th: January 21
- Born 21st-31st: January 28
Cost-of-Living Adjustment: 2.8% Bump
The agency confirmed in October that benefits will climb 2.8% starting in January 2026. Letters detailing the exact dollar increase began mailing in early December. Account holders can also view the notice online through the my Social Security portal.
| Recipient Type | 2025 Monthly Check | 2026 Monthly Check | Dollar Gain |
|---|---|---|---|
| Retired Worker | $2,015 | $2,071 | +$56 |
| Retired Couple | $3,120 | $3,208 | +$88 |
Medicare Part B Premium Hike
The Centers for Medicare and Medicaid announced in November that Part B premiums will rise from $185 to $202.90 per month. Because most people pay this charge straight out of their Social Security deposit, the higher premium eats into the new COLA dollars.
Maximum Monthly Payouts
The top benefit for someone who retires at full retirement age will grow from $4,018 in 2025 to $4,152 in 2026. Workers who wait until age 70 can collect up to $5,251 a month next year.
Working While Collecting: New Income Caps
Claim benefits before full retirement age and the agency trims payments if earnings exceed set limits.
Under Full Retirement Age All Year
- 2025 cap: $23,400
- 2026 cap: $24,480
- Penalty: $1 withheld for every $2 earned above the limit
Year You Reach Full Retirement Age
- 2025 cap: $62,160
- 2026 cap: $65,160
- Penalty: $1 withheld for every $3 earned above the limit
New Tax Break for Older Adults
A $6,000 bonus deduction created under the “One Big Beautiful Bill” can shrink-or erase-federal income taxes owed on Social Security payments. The break applies to anyone who will be 65 or older by the end of 2025 and whose modified adjusted gross income is up to $75,000 for single filers or $150,000 for joint filers. Higher earners can claim a partial deduction until income hits $175,000 (single) or $250,000 (couple). The provision expires after 2028.
Disability Rules for 2026
Social Security Disability Insurance recipients can test the job market under strict earnings limits:
- Non-blind workers cap at $1,690 per month
- Blind workers cap at $2,830 per month
- Trial work period threshold rises to $1,210 per month
Exceed those amounts and benefits can be paused or stopped.
Key Takeaways
- Expect a bigger check in January, but Medicare will reclaim some of it.
- Working seniors keep more earnings before penalties kick in.
- A new tax deduction may spare many recipients from paying federal tax on their benefits.
