6 Big Social Security Changes for 2026

Changes are coming to Social Security in 2026 that will not only affect the 70 million people receiving Social Security benefits, but also the 185 million future beneficiaries who are working now and paying into the system.

The changes next year will affect monthly checks, Medicare costs, taxes, and the rules about continuing to work while collecting benefits.

Here are six notable changes coming in 2026:

1. Social Security Benefits Will Go Up

Social Security beneficiaries will receive a 2.8 percent cost-of-living adjustment (COLA) due to inflation that is still affecting the economy, just as it did in 2025, when the COLA increase was 2.5 percent. AARP reports that 2026 will be the fifth year in a row that COLA is at least 2.5 percent, the longest stretch since the 1990s.

The COLA is applied to survivor and family benefits, Social Security Disability Insurance, and Supplemental Security Income (SSI), a monthly benefit for individuals with low incomes and limited assets who are 65 or older, blind, or have a disability.

Rob Williams, managing director of financial planning at Charles Schwab, told AARP that Social Security recipients will appreciate the COLA increase, even though some might believe it should be higher.

“Inflation has been a top concern, both emotionally and financially, for a lot of Americans, retirees included,” Williams said. “It feels like everything is getting more expensive.”
The Social Security Administration (SSA) estimates that the average monthly retirement benefit will increase by about $56, from $2,015 to $2,071. SSI recipients will receive their higher payment on December 31, 2025, while everyone else will see the increase in January 2026.

2. Medicare Part B Will Cost More

Beneficiaries will see a nearly 10 percent increase in their Medicare Part B monthly premium. Starting in January, the standard Part B premium will jump from $185 to $202.90, a 9.7 percent increase. Along with that comes a $26 hike in the annual Medicare Part B deductible, rising from $257 in 2025 to $283 in 2026.

Medicare Part B pays for doctors’ and outpatient hospital services, durable medical equipment, certain home health services, and more medical and health services that Medicare Part A does not cover.

For Medicare enrollees who have their Part B premium deducted from their Social Security benefits, SSA estimates that the higher premium will take about $17.90 a month out of their additional COLA money.

3. Workers Will Pay Social Security Taxes on More Income

The amount of income subject to Social Security taxes will increase next year. The maximum earnings subject to the Social Security tax for 2026 will be $184,500, up from $176,100 in 2025. Earnings above $184,500 will not be taxed for Social Security in 2026. The maximum earnings amount is adjusted each year.

What stays the same in 2026 is the Social Security tax rate. Workers and employers will still pay 6.2 percent each, while self-employed workers will pay the full 12.4 percent.

4. Annual Earnings Limit Will Increase

If you collect Social Security before your full retirement age and you continue working, there is a limit on how much you can earn without losing part of your benefit. This is what SSA calls the “Retirement Earnings Test” (RET). The RET reduces Social Security benefits before you reach full retirement age, and then increases benefits for the remainder of your life when you reach full retirement age.

In 2026, the annual earnings limit will be $24,480, up from $23,400 in 2025. For those who earn more than the limit, Social Security will withhold $1 for every $2 earned above it. For example, for those who earn $40,000 in 2026, Social Security will withhold $7,760 for the year (half the difference between $24,480 and $40,000).

5. Amount to Earn Work Credits Increase

To qualify for Social Security retirement benefits, workers must earn 40 work credits. It takes about 10 years to earn these credits since workers can earn only four credits per year. Credits are earned by working in jobs that are subject to Social Security taxes.

In 2026, workers will earn one (1) credit for earnings of $1,890, $80 more than the 2025 level of $1,810l. This means workers earn a maximum of four credits when their work income for the year reaches $7,560.

6. New Tax Break for People Age 65 and Older

Individuals who are 65 or older at the end of 2025 will be able to claim an additional $6,000 tax deduction. Those who qualify can claim this deduction whether they itemize or take the standard deduction. This new rule, which is effective for tax years 2025 through 2028, may lower or even wipe out federal income taxes on Social Security for many older adults.

Single filers who earn up to $75,000 or married couples with a combined income of up to $150,000 can claim the full $6,000.
In addition, single filers with income up to $175,000 and married couples earning a combined income up to $250,000 can claim a reduced deduction.

While millions of older Americans may welcome the tax cuts, the benefit is expected to harm Social Security’s trust funds. An Aug. 5 analysis from Social Security’s chief actuary estimates that the tax break could result in $168.6 billion in lost tax revenue over the next decade, and could speed up the depletion of Social Security’s trust funds by up to six months.

Social Security has two trust funds: one for retirement and survivor benefits, and another for disability benefits. The actuary projects that the retirement and survivor fund will fall short in the fourth quarter of 2032 rather than the first quarter of 2033.

AARP is calling on Congress to take action to protect Social Security before the funds are depleted.

“More than 69 million Americans rely on Social Security today, and as America’s population ages, the stability of this vital program only becomes more important,” AARP’s CEO, Dr. Myechia Minter-Jordan, said. “AARP members and older Americans nationwide consistently say that the future of Social Security and Medicare are the issues they care about most, and they stand ready to hold politicians across party lines accountable to strengthen these programs for the long term.”

Source Links:
https://www.aarp.org/social-security/2026-cola-increase-announcement/
https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles
https://www.aarp.org/social-security/trust-fund-shortfall-projected-2034/