Social Security Changes 2026: Benefit Increase, Eligibility, Payments & New Rules

The Social Security Administration has announced several important updates for 2026 that will affect benefits, eligibility, and payments for millions of Americans. Starting January 2026, benefits will increase, there will be new earnings rules for those working while receiving benefits, tax limits will rise, and Medicare premiums will go up. Here’s what you need to know to prepare for these changes.

2.8% Social Security Benefit Increase in 2026

Social Security monthly payments will go up by 2.8% in 2026. This cost-of-living adjustment (COLA) helps benefits keep pace with rising prices. For the average retiree, benefits will increase by about $56 per month, from $2,015 this year to approximately $2,071 in 2026. Supplemental Security Income (SSI) payments will also increase starting December 31, 2025.​

Social Security Earnings Limits 2026: New Income Rules for Working Beneficiaries

If you receive Social Security benefits and continue to work, your earnings may affect your payments:

• Before full retirement age (FRA), you can earn up to $24,480 annually without a reduction in your benefits. If you earn more, $1 is deducted for every $2 above this limit.
• In the year you reach FRA, the limit rises to $65,160. For every $3 earned over this, $1 is withheld until you reach full retirement age.
• Once you reach full retirement age, there is no limit on how much you can earn without affecting your benefits.​

Social Security Increased Taxable Earnings Limit and Unchanged Tax Rates

The maximum earnings subject to Social Security tax will increase to $184,500 from $176,100 in 2025. The Social Security payroll tax rates remain unchanged at 6.2% for employees and 12.4% for self-employed workers. Medicare taxes continue to apply on all earnings without a cap.​

Higher Medicare Part B Premiums in 2026

Medicare Part B premiums are expected to increase by around 11.5% in 2026. This premium is usually deducted from Social Security payments, which may reduce the net gain beneficiaries see from the benefit increase. It is important to factor this into your budgeting if you depend on Medicare.​

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Social Security Full Retirement Age 2026: Key Rules Every Retiree Must Know

In 2026, the Full retirement age (FRA) remains 67 for people born in 1960 or later.
Reaching FRA is important because:

• earnings limits change
• benefit reductions end
• retirees can collect full, unreduced social security benefits
• Understanding FRA helps retirees plan the best time to claim benefits and maximize lifetime Social Security income.