What is the Social Security COLA?
The cost-of-living adjustment (COLA) is the yearly raise Social Security and Supplemental Security Income (SSI) payments get so they keep pace with inflation. It applies to everyone receiving benefits: retirees, spouses, survivors and people on disability.
How the COLA is calculated
The Social Security Administration compares the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July, August and September with the same three-month average from the last year a COLA was set. The percentage increase, rounded to the nearest tenth of a percent, becomes the COLA.
Your new benefit is your current benefit multiplied by (1 + COLA). Social Security rounds the result down to the next lower dime, and the amount actually paid is rounded down to the whole dollar after any deductions, which is why this calculator does the same.
Key dates for the 2027 COLA
| Date | What happens |
|---|---|
| October 14, 2026 | September inflation data is released and the 2027 COLA is announced. |
| Late 2026 | The official 2027 Medicare Part B premium is announced. |
| December 2026 | Benefit letters with your exact new amount appear in your my Social Security account. |
| December 31, 2026 | SSI recipients get their first increased payment (moved up because January 1 is a holiday). |
| January 2027 | Social Security beneficiaries get their first increased payment. |
Why your deposit may rise less than the COLA
Most people on Medicare have the Part B premium taken straight out of their Social Security check. When the premium goes up, part of the raise is used up before the money reaches you. In 2026, for example, the COLA was 2.8%, but the standard Part B premium also rose by $17.90 a month to $202.90. For many retirees, that ate a sizable share of the increase.
A rule called hold harmless protects most beneficiaries whose Part B premium is deducted from their check: their net Social Security payment can't go down from one year to the next because of a Part B increase. It doesn't apply to higher earners who pay IRMAA surcharges or to people new to Medicare.
Example
Say your 2026 benefit is $2,000 and Part B is deducted. With a 3.5% COLA, your benefit becomes $2,070.00, a $70 raise. If Part B rises from $202.90 to the projected $209.50, your deposit goes from $1,797 to $1,860: a $63 increase instead of $70.
Could the raise increase my 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 income thresholds aren't adjusted for inflation, so a bigger benefit can push some retirees over a threshold. If you're close to one, it may be worth reviewing your withholding.
Frequently asked questions
When will the 2027 COLA be announced?
On October 14, 2026, when the September Consumer Price Index is published. Until then, the 3.5% default in this calculator is an estimate from The Senior Citizens League. Change it to any number you like.
When will I see the higher payment?
Social Security payments increase starting in January 2027. SSI payments increase on December 31, 2026.
Is the COLA applied to my payment after Medicare is taken out?
No. The COLA is applied to your full benefit before any deductions. Medicare premiums and tax withholding are subtracted afterward.
What if I have IRMAA surcharges?
Enter your own 2026 and 2027 Part B premiums in the calculator. IRMAA brackets for 2027 are based on your 2025 tax return.
Does everyone get the same percentage?
Yes. Every beneficiary gets the same percentage increase, so the dollar amount depends on the size of your benefit.
Estimates only. Your exact 2027 amount will appear in your benefit letter from the Social Security Administration. This calculator does not include income tax withholding, Part D or Medicare Advantage premiums, or other deductions. Historical COLA figures: Social Security Administration. Not financial advice. Last updated September 29, 2026.