The Social Security Administration published its figures for 2027 on 14 October 2026. Two numbers matter most for our calculators: benefits rise by 3.6%, and the cap on earnings that pay Social Security tax goes up from $184,500 to $192,300. Below we run both through the same code as our Social Security calculator and self-employment tax calculator, which keep the 2026 figures until 1 January 2027.
What changes in 2027
- Cost-of-living adjustment: retirement, survivor and disability benefits rise by 3.6% starting with the January 2027 payment. Supplemental Security Income rises by the same percentage from 31 December 2026.
- Taxable maximum (wage base): $192,300, up $7,800. The 6.2% employee and 6.2% employer Social Security tax stops at this limit. Medicare tax has no cap and is unchanged.
- Benefit formula bend points: for workers who turn 62 in 2027, the formula pays 90% of average indexed monthly earnings (AIME) up to $1,340, 32% up to $8,077 and 15% above. The 2026 points were $1,286 and $7,749.
- Work credits: one quarter of coverage takes $1,970 of earnings in 2027, and you can still earn at most four a year.
The tax rates themselves do not change: 6.2% each for employee and employer, 12.4% for the self-employed.
Who is affected
About 72 million beneficiaries get the higher payment automatically; you don’t need to apply. On the tax side, only people whose wages or self-employment earnings exceed $184,500 pay more. If you earn $192,300 or more, $7,800 of extra pay becomes taxable, which costs you $483.60 as an employee. Your employer pays the same again. If you work for yourself, you pay both halves: the maximum Social Security part of self-employment tax rises from $22,878.00 to $23,845.20, an increase of $967.20.
Payroll tax before and after
The salary links open our take-home pay calculator, which uses the 2026 base until 1 January.
| Annual wages | Social Security tax 2026 | Social Security tax 2027 | Change |
|---|---|---|---|
| $100,000 | $6,200.00 | $6,200.00 | no change |
| $150,000 | $9,300.00 | $9,300.00 | no change |
| $184,500 | $11,439.00 | $11,439.00 | no change |
| $190,000 | $11,439.00 | $11,780.00 | +$341.00 |
| $200,000 | $11,439.00 | $11,922.60 | +$483.60 |
| $250,000 | $11,439.00 | $11,922.60 | +$483.60 |
Below $184,500 nothing changes. Between the two limits the tax rises with every dollar, and above $192,300 the increase is fixed at $483.60. If you have two employers, each one withholds up to the cap separately; you claim any excess back as a credit on your federal return.
Worked example: what the COLA adds
Take the default case in our Social Security calculator: average earnings of $70,000 a year give an AIME of $5,833 and a primary insurance amount (PIA) of $2,612.40. If that person is already drawing benefits at full retirement age, the 3.6% COLA lifts the PIA to $2,706.40. SSA rounds the PIA down to the dime and the payment down to the dollar, so the monthly check goes from $2,612 to $2,706, or $1,128 more a year.
Someone with the same record who claimed at 62 gets 70% of the PIA. Their check goes from $1,828 to $1,894. Claiming early shrinks the COLA in dollars as well, because the percentage applies to a smaller base.
Worked example: the new bend points
Bend points rise each year with national average wages, and the set that applies to you is fixed by the year you turn 62. With the same AIME of $5,833, the 2026 formula gives a PIA of $2,612.40; the 2027 formula gives $2,643.70. This does not mean a worker turning 62 in 2027 gets a raise: their earnings are also indexed to a later year, so their AIME is higher too. It shows why our calculator, which uses one set of bend points with today’s salary, is an estimate rather than your official figure.
What to do now
- Check your COLA notice in December, by mail or in your my Social Security account. Medicare Part B premiums for 2027 are deducted from the same payment and are announced separately, so the net increase may be smaller than 3.6%.
- If you earn more than $184,500, expect slightly smaller paychecks from January until your year-to-date wages pass $192,300.
- If you are self-employed, plan your 2027 estimated payments with the higher cap. Our self-employment tax calculator will switch to $192,300 on 1 January.
- If you are deciding when to claim, compare ages 62 to 70 in the Social Security calculator. Future COLAs apply to whatever benefit you lock in.
How we calculated this
The 2026 figures are our calculators’ own data: the $184,500 wage base, 6.2% employee rate and bend points of $1,286 and $7,749. For 2027 we change only the figures SSA announced. The payroll table assumes one employer and a full year of wages. The COLA example applies the percentage to the PIA and rounds as SSA does; it ignores Medicare premiums, income tax on benefits and the earnings test, which our calculator does not model. Sources: SSA – 2027 Cost-of-Living Adjustment fact sheet, SSA Office of the Chief Actuary – contribution and benefit base and SSA – primary insurance amount formula.
General information, not tax advice or financial advice. Your benefit depends on your own earnings record; check your statement at ssa.gov.