2026 Social Security Updates: What’s Changing—and How to Use It
Social Security is getting its routine tune-up for 2026, with several key rules and provisions being updated. First, benefits are set to rise by 2.8% with the new cost-of-living adjustment. You don’t need to do anything to receive it; payments simply adjust beginning with January 2026 checks (SSI reflects the increase in the December 31, 2025 deposit). It’s not a windfall, but it helps offset day-to-day inflation.
If you’re still working, you’ll notice the payroll cap inching higher. In 2026, the 6.2% Social Security tax applies to wages up to $184,500. Medicare’s 1.45% tax remains uncapped, as always. That change may nudge your take-home pay and, for consistently high earners, slightly influences future benefits.
Many retirees ask about working while on benefits. The earnings test gets a small lift too. If you’re under full retirement age for the entire year, you can earn up to $24,480 before any withholding applies; above that, Social Security withholds $1 for every $2 over the limit. In the year you reach full retirement age, the limit rises to $65,160 and the withholding eases to $1 for every $3 over—only for the months before you hit FRA. Once you reach FRA, there’s no earnings test at all.
Two other thresholds to keep on your radar: in 2026 you earn one work credit for every $1,890 of wages (max four per year). For disability rules, Substantial Gainful Activity is $1,690 per month for non-blind individuals and $2,830 for blind individuals, with a Trial Work Period amount of $1,210 per month. On the upper end, the maximum benefit at full retirement age moves to $4,152 a month. For SSI, the federal benefit rate becomes $994 monthly for an individual and $1,491 for a couple, before any state add-ons.
What does all this mean for your plan? Modest but meaningful tweaks. If you’re already claiming, expect a small bump—but remember your net deposit can shift once 2026 Medicare Part B premiums are finalized.
If you’d like more clarity on these rules—or help determining the optimal way to file—email [email protected] or call 704-302-1141. We’ll keep it simple and practical.