3 Important Social Security Changes Coming in 2026

Social Security is entering its 10th decade. The popular federal program began in 1935, with President Franklin D. Roosevelt signing the Social Security Act into law. Through the years, there have been several major changes to Social Security, including a gradual raising of the full retirement age from 65 to 67.

More changes to Social Security are on the way. Here are three important ones coming in 2026.

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1. Cost-of-living adjustment (COLA)

The most important Social Security change next year for beneficiaries is the annual cost-of-living adjustment (COLA). Last month, the Social Security Administration announced that benefits will increase by 2.8% beginning in January 2026. The average Social Security retirement benefit will increase by roughly $56 per month.

This adjustment is bigger than the 2.5% increase received in 2025. However, it's lower than the average COLA of 3.1% over the last 10 years.

Not everyone is happy with a 2.8% bump. Shannon Benton, executive director for The Senior Citizens League, a nonprofit advocacy group for seniors, stated, "The 2026 COLA is going to hurt for seniors." Benton and her organization would like for Congress to modify how the COLA is calculated to better reflect the costs incurred by seniors.

2. Higher earnings limits for early retirees

Some individuals claim Social Security retirement benefits before they reach their full retirement ages but continue to work. Some of their income from working could be subject to Social Security's retirement earnings test.

The Social Security Administration (SSA) will deduct $1 from benefit payments for every $2 earned above an annual limit for anyone who is under their full retirement age for the entire year. In 2025, that annual limit was $23,400 ($1,950 per month). However, it's increasing to $24,800 ($2,040 per month) in 2026.

For individuals who reach full retirement age while continuing to work, SSA will deduct $1 in benefits for every $3 earned above a different, higher annual limit. In 2025, this earnings limit was $62,160 ($5,180 per month). In 2026, the annual limit will increase to $65,160 ($5,430 per month).

3. Increased maximum taxable earnings

Another major Social Security change isn't limited to current beneficiaries. Instead, it applies to high-income working Americans.

The maximum amount of earnings subject to the Social Security portion of FICA payroll taxes will increase to $184,500 in 2026 from $176,100 this year. All employees must pay 7.65% of their salaries to help fund both Social Security and Medicare. Employers pay the same rate for each employee. Self-employed individuals pay both the employee and employer FICA taxes, for a total of 15.3%.

Income above $184,500 won't be subject to FICA taxes in 2026. However, it's likely the maximum taxable earnings threshold will increase again in future years.

Another important change that's tied to Social Security

The annual COLA of 2.8%, the higher earnings limits for early retirees, and the increased maximum taxable earnings are the biggest changes to Social Security next year. But there's also another important change that's tied to Social Security.

Medicare Part B premiums are automatically withheld from monthly Social Security benefit payments for most individuals. In 2025, the standard monthly Part B premium was $185. Some people pay higher Medicare Part B premiums, though, if their modified adjusted gross income is higher than established thresholds.

The Centers for Medicare and Medicaid Services (CMS) hasn't announced the amount of the Medicare Part B premiums for 2026 yet. However, the standard Part B premiums are expected to increase by 11.6% to $206.50. This additional amount will offset much of the COLA received by many retirees.

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