While the Social Security Administration (SSA) has confirmed that all beneficiaries will receive the same 2.8% Cost-of-Living Adjustment (COLA) in 2026, not everyone will see the same dollar increase.
Because the percentage boost applies to each person’s base benefit, retirees in states with higher average payments will receive larger increases in absolute terms. And as new data shows, those differences can be substantial.
Social Security Increase 2026: Key Facts
The SSA’s official 2.8% COLA will take effect in January 2026, impacting roughly 75 million Americans who rely on Social Security or Supplemental Security Income (SSI).
For SSI recipients, the updated payments will arrive a bit earlier — on December 31, 2025 — to ensure that the new amounts are reflected at the start of the year.
| Category | 2025 Average Payment | 2026 (2.8% Increase) | Dollar Increase |
|---|---|---|---|
| Retired Worker | $1,995 | $2,051 | +$56 |
| Disabled Worker | $1,537 | $1,580 | +$43 |
| Aged Couple (both receiving) | $3,230 | $3,320 | +$90 |
Although the percentage increase is uniform nationwide, the average benefit size differs widely by state, creating variations in how much recipients actually gain in dollar terms.
Why Some States Get Bigger Increases
The COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) — a nationwide measure of inflation. But since benefits vary by earnings history and local wages, states with higher average retirement incomes will see higher dollar increases even though everyone receives the same 2.8% bump.
“COLA adjustments preserve purchasing power, but they amplify existing disparities between states with higher wages and those with lower ones,” said Mary Johnson, policy analyst at The Senior Citizens League (TSCL).
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Top 10 States with the Highest Average Social Security Benefits
A recent analysis by The Motley Fool using SSA’s 2025 Annual Statistical Supplement identified the states where retirees receive the largest average Social Security checks.
| Rank | State | Average Monthly Benefit (2025) | Estimated 2026 Benefit (2.8% COLA) | Increase ($) |
|---|---|---|---|---|
| 1 | New Jersey | $2,172 | $2,233 | +$61 |
| 2 | Connecticut | $2,159 | $2,219 | +$60 |
| 3 | Delaware | $2,139 | $2,199 | +$60 |
| 4 | New Hampshire | $2,121 | $2,181 | +$60 |
| 5 | Maryland | $2,084 | $2,142 | +$58 |
| 6 | Michigan | $2,067 | $2,125 | +$58 |
| 7 | Washington | $2,061 | $2,118 | +$57 |
| 8 | Minnesota | $2,053 | $2,110 | +$57 |
| 9 | Massachusetts | $2,021 | $2,078 | +$57 |
| 10 | Indiana | $2,016 | $2,072 | +$56 |
New Jersey retirees will see the largest average increase — about $61 per month — compared to roughly $56 for the national average.
States with higher local earnings, such as Maryland and Connecticut, tend to rank higher, while states with lower average incomes, like Mississippi or Arkansas, see smaller dollar changes.
New Income and Tax Limits for 2026
Alongside the COLA announcement, the SSA unveiled new Social Security tax and earnings thresholds for 2026, reflecting inflation and wage growth across the U.S.
Key 2026 Income Thresholds
| Category | 2025 Limit | 2026 Limit | Change |
|---|---|---|---|
| Maximum Taxable Income | $168,600 | $184,500 | +$15,900 |
| Annual Earnings Limit (before FRA) | $22,320 | $24,480 | +$2,160 |
| Annual Earnings Limit (reaching FRA in 2026) | $59,520 | $65,160 | +$5,640 |
The maximum taxable income is the earnings ceiling subject to the 6.2% Social Security payroll tax. Above that level, workers no longer pay into the system for the year.
The new limits also affect working retirees. Those who haven’t reached full retirement age (FRA) in 2026 can earn up to $24,480 before their benefits are temporarily reduced. For those who reach FRA during 2026, the higher limit of $65,160 applies.
“These updates matter most for people who continue working while drawing benefits,” said Andrew Biggs, senior fellow at the American Enterprise Institute. “Knowing the income thresholds can help retirees avoid unnecessary benefit reductions.”
When and How You’ll Be Notified?
Beneficiaries will receive personalized letters from the SSA beginning in early December 2025, explaining their new payment amount, the effective date, and how COLA was applied.
Those who prefer digital notifications can choose paperless communication through the mySocialSecurity portal. The SSA advises users to opt in to electronic notices by November 19, 2025, to ensure their December updates arrive via email and online account.
Social Security Payment Dates Remain Unchanged
Despite ongoing government budget debates, Social Security payments are unaffected by shutdowns because they are funded through dedicated trust funds, not annual appropriations.
The payment calendar for November 2025 and early 2026 remains unchanged:
| Birth Date Range | November 2025 Payment Date | January 2026 (New COLA Applied) |
|---|---|---|
| 1st–10th | November 12 | January 8 |
| 11th–20th | November 19 | January 15 |
| 21st–31st | November 26 | January 22 |
| SSI Recipients | October 31 | December 31 (reflects new COLA) |
Recipients who receive both SSI and Social Security will continue to get their SSI payments at the end of the month and Social Security at the beginning of the next.
Why These Changes Matter?
While the 2.8% COLA may not sound large, it represents a critical safeguard for retirees living on fixed incomes. Even modest adjustments can offset part of the inflationary squeeze from rising housing, medical, and food costs.
But experts warn that the formula still doesn’t fully capture seniors’ true expenses. Many advocacy groups, including The Senior Citizens League and AARP, continue to call for using the CPI-E — an inflation index tailored to older Americans’ spending patterns — instead of the CPI-W.
“We’re grateful for any increase, but healthcare inflation remains much higher than COLA growth,” said Richard Fiesta, Executive Director of the Alliance for Retired Americans. “Until the formula changes, seniors will keep falling behind.”
Bottom Line
Every Social Security beneficiary will see a 2.8% raise in 2026 — but the dollar impact varies dramatically depending on where you live and how much you already receive.
For retirees in high-benefit states like New Jersey, Connecticut, and Delaware, the increase may feel more meaningful. But for millions of Americans living on smaller monthly checks, even a few extra dollars will be quickly consumed by everyday costs.
Regardless of location, retirees should review their December SSA notice or mySocialSecurity account to confirm their updated benefit — and adjust their 2026 budgets accordingly.