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2026 Social Security COLA Set at 2.8% as Medicare Part B Premium Rises to $202.90

Higher Medicare premiums are set to absorb part of retirees’ gains.

Overview

  • The Social Security Administration finalized a 2.8% cost-of-living adjustment for 2026, with increases applied in January and SSI adjustments on December 31, 2025.
  • The standard Medicare Part B premium will rise 9.7% to $202.90 in January 2026, which will reduce many beneficiaries’ net monthly increase.
  • Senate Democrats introduced a bill to add $200 per month to benefits for six months through July 2026, though the proposal has not been enacted.
  • The maximum amount of wages subject to Social Security payroll tax will increase to $184,500 in 2026.
  • Earnings-test thresholds will rise to $24,480 for beneficiaries under full retirement age and to $65,160 for those reaching full retirement age in 2026.