Changes are coming to Social Security in January — here’s what Americans should know

Social Security recipients will receive higher payments from January 2027, while higher earners will pay tax on a larger share of their income. The changes affect millions of Americans and are intended to adjust benefits for rising prices and the taxable earnings limit for wage growth.

The annual cost-of-living adjustment is 3.6%, which is expected to raise benefits by about $75 a month for nearly 72 million retirees; payments to around 7.3 million Supplemental Security Income recipients begin on 31 December 2026. The taxable maximum will rise from $184,500 to $192,300, meaning someone earning at least $192,300 could pay up to $483.60 more in Social Security tax annually. The Social Security Administration also says it updated its records, adding 17 million dates of death and filling in citizenship information on about 25 million records.