The 2027 Social Security COLA is here: See how your benefits will be impacted
Editorial staff, J.P. Morgan Wealth Management
- The Social Security Administration's (SSA) 2027 cost-of-living adjustment (COLA) is 3.6%.
- This small increase helps ensure retirees' Social Security benefits keep pace with inflation.
- The COLA is calculated based on inflation using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). To arrive at the number, the SSA compares the CPI-W's third-quarter average this year to its third-quarter average last year.
The 2027 Social Security cost-of-living adjustment (COLA) is 3.6%, so individuals receiving benefits in the new year can expect their benefits to be 3.6% higher than in 2026. This adjustment happens every year, and for good reason: to make sure Social Security benefits keep pace with inflation. The exception to a COLA increase is if inflation were zero or negative for a particular year. In that case, the COLA would be zero. (It’s never negative.)
Without the COLA, Social Security benefits would essentially be worth less every year as inflation reduces purchasing power. Let’s say your monthly benefit is the average for retired workers as of August 2026 – $2,087.52. With a COLA of 3.6%, your benefits will rise by about $75 in 2027. For 2026, the COLA was 2.8%.
The 2027 Social Security COLA is 3.6%
With a COLA of 3.6%, retirees in 2027 are set to receive an increase in their benefits that exceeds the one they received a year prior. For 2026, the COLA for Social Security benefits was 2.8%.
The COLA doesn't only affect payments for retired workers. It also applies to benefits received by surviving spouses of retired workers and to Supplemental Security Income (SSI) benefits.
To learn what your monthly Social Security benefit will be with the new COLA applied, log in to your "my Social Security" account online. You should be able to see your 2027 benefit amount sometime in November 2026. You'll also likely receive a notice from the Social Security Administration (SSA) in the mail.
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How is the Social Security COLA calculated?
Every month, the Bureau of Labor Statistics publishes the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The COLA is based on this metric. Specifically, the SSA calculates the next year's COLA by comparing the third-quarter averages of two years: this year and last year. (The third quarter is from July through September.) If this year's CPI-W third-quarter average is higher than last year's CPI-W third-quarter average, then the COLA for the next calendar year will be equal to that percentage increase. If it's negative, then the COLA will be zero.
How does the 2027 COLA compare to past years?
At 3.6%, the Social Security COLA for 2027 is the third highest in the past decade and the highest since 2023.
The 3.6% increase for 2027 is moderately higher than the 2.8% increase for 2026. That increase was slightly higher than the 2.5% increase for 2025. Still, 2027's increase in Social Security benefits is significantly lower than the 5.9% increase for 2022 and the 8.7% increase for 2023. Those two years represented the biggest increases in four decades and were a result of surging inflation in 2021 and 2022 that was driven by the COVID-19 pandemic.
Annual Social Security COLAs for 2018–2027
Calendar Year | Social Security COLA |
|---|---|
2027 | 3.6% |
2026 | 2.8% |
2025 | 2.5% |
2024 | 3.2% |
2023 | 8.7% |
2022 | 5.9% |
2021 | 1.3% |
2020 | 1.6% |
2019 | 2.8% |
2018 | 2.0% |
Source: Social Security Administration
Are Social Security benefits taxed in 2027?
Whether your Social Security benefits are taxed at the federal level depends on your income. Whether they're taxed at the state level depends on your state of residence.
According to current IRS rules as of 2026, if your combined income (50% of your benefit amount plus any other earned income and withdrawals from retirement accounts) is more than $25,000 per year for an individual or $32,000 per year for those filing jointly, you may owe federal taxes on up to 85% of your Social Security benefits.
As mentioned, state-level tax rules for Social Security benefits vary by state. Most states don't tax Social Security benefits. Eight states do, however: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont.
If you have any questions, consider speaking with a qualified tax professional about your situation.
How to plan for your higher benefits and Social Security payments in 2027
To plan for the COLA – and your change in benefits – it's a good idea to examine your budget. With the 3.6% increase, you may find you have a little more room in your monthly spending.
If you're interested in maximizing your monthly benefit amount, consider waiting to collect Social Security until you're 70 years old. (There's no incentive to wait after that.)
It's also important to know when your benefits will arrive, so you can factor those funds into your budget. When you receive your benefits depends on your birth date:
- Birth date between the 1st and the 10th: Paid on the second Wednesday of each month
- Birth date between the 11th and the 20th: Paid on the third Wednesday
- Birth date between the 21st and the 31st: Paid on the fourth Wednesday
The bottom line
For 2027, the Social Security COLA is 3.6%. That’s a bit of a rise above 2026's COLA – which was 2.8% – but significantly under the higher COLAs of 2022 and 2023 (5.9% and 8.7%, respectively). The SSA determines the size of the COLA based on a metric called the CPI-W, which tracks inflation. By comparing the current year's third-quarter CPI-W to last year's third-quarter CPI-W, the agency arrives at a percentage – and it's typically positive. If it's zero or negative, then the COLA will be zero. Understanding the COLA for the upcoming calendar year can help you adjust your budget and prepare for a new Social Security benefit amount.
Frequently asked questions about the 2027 Social Security COLA
The timing of your Social Security check depends on your birth date. People with birth dates ranging from the 1st to the 10th of the month will be paid on the second Wednesday of the month. People with birth dates ranging from the 11th to the 20th will be paid on the third Wednesday of the month. And those with birth dates ranging from the 21st to the 31st will be paid on the fourth Wednesday of the month.
To check your Social Security benefit amount for 2027, log in to "my Social Security" using your web browser at some point in November. Your updated amount should be available to view at that time. You’ll also likely receive an updated benefits notice from the SSA in the mail.
To boost your monthly Social Security benefits, wait until you are 70 years old to start collecting. If you do, your monthly benefit amount will be higher than if you were to begin collecting benefits at age 62 (the earliest you can start collecting).
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