Social Security Administration Releases 2027 COLA Numbers

Last week, the Social Security Administration (SSA) announced a 3.6% cost-of-living adjustment (COLA) increase with respect to monthly benefits paid to Social Security recipients (the 2026 COLA increase was 2.8%). It's anticipated that the average beneficiary will receive about $75 more per month in 2027. Social Security "COLA" adjustments are tied to the consumer price index each year. Based on the 3.6% increase, the SSA also announced that the annual Social Security earnings cap will be increased from $184,500 for 2026 to $192,300 for 2027. This means that in 2027, each taxpayer's first $192,300 in earnings will be subject to Social Security taxes and the maximum amount that the employer and employee will be required to pay will increase to $11,922.60 each. Social Security and SSI recipients should expect to receive information about their new benefit amount by mail beginning in early December. Taxpayers with My Social Security accounts can also access their COLA notices online. For more information on the Social Security tax, visit Tax Facts Online. Read More: Link to Q8573.