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Cost Of Living Adjustment Increases 2.8% In 2026, Contribution Base Increased To $184,500

With the release of the CPI report this morning, we now know the Cost of Living Adjustment (COLA), and the contribution base for 2026.

From Social Security: Social Security Announces 2.8 Percent Benefit Increase for 2026

The Social Security Administration (SSA) announced today that Social Security benefits, including Old-Age, Survivors, and Disability Insurance (OASDI), and Supplemental Security Income (SSI) payments for 75 million Americans will increase 2.8 percent in 2026. On average, Social Security retirement benefits will increase by about $56 per month starting in January.
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Other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) is slated to increase to $184,500 from $176,100.

Currently CPI-W is the index that is used to calculate the Cost-Of-Living Adjustments (COLA). Here is a discussion from Social Security on the current calculation (2.8% increase) and a list of previous Cost-of-Living Adjustments.

The contribution and benefit base will be $184,500 in 2026.

The National Average Wage Index increased to $69,846.57 in 2024, up 4.84% from $66,621.80 in 2023 (used to calculate contribution base).

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Cost Of Living Adjustment Increases 2.8% In 2026, Contribution Base Increased To $184,500

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