Summary
Several changes to Social Security are planned for 2026, affecting benefits, taxes, and Medicare costs. Social Security recipients will get a 2.8% increase in payments to help with living costs, and a new tax deduction will be available for older Americans. Additionally, Medicare premiums are set to rise, and more income will be subject to payroll taxes.
Key Facts
- Over 70 million people in the U.S. receive Social Security payments.
- A 2.8% Cost-of-Living Adjustment (COLA) will raise Social Security payments starting in January 2026.
- Average retirement payments will increase from $2,015 to $2,071 per month.
- Medicare Part B premiums will go up from $185 to $202.90 monthly.
- A new tax deduction will let seniors reduce their taxable income by up to $6,000.
- The income cap for Social Security taxes will rise from $176,100 to $184,500.
- For those working while collecting benefits, limits on earnings before benefits are reduced will increase.
