Big Social Security changes are coming in January 2026
Social Security beneficiaries will see many changes starting in January, from the good (a new tax break) to the more challenging (potential reductions in in-person customer service).
Some of the moving parts are annual changes that more than 70 million Americans who receive Social Security and Supplemental Security Income (SSI) will see. However, some are new. Here’s what you need to know if you’re collecting a Social Security check or expecting to file a claim this year.
Monthly payments are progressive
Social Security payments usually get an annual boost to help retirees handle rising prices. Next year, the cost of living adjustment (COLA) will be 2.8%. That amounts to an extra $56 a month for the average recipient, and the average payment will reach $2,071 in January, the Social Security Administration said.
Annual benefit adjustments are based on inflation data from the months of July, August and September. With inflation rising again, the 2026 COLA is slightly higher than what retirees received this year.
However, next year’s increase falls short of what some organizations say is needed to meet retirees’ normal expenses, particularly health care costs. When the COLA was announced in October, Ramsey Alwin, president and CEO of the National Council on Aging, called the amount “woefully inadequate,” especially in light of upcoming increases in Medicare costs next year.
Maximum benefits will increase by more than $1,700 per year
Along with the increase in COLA, the maximum benefit an individual can receive also increases. It will increase from $5,108 per month this year to $5,251 per month in 2026. That adds up to an extra $1,700 a year.
The share of retired workers who receive this large benefit is relatively small. To qualify, in addition to waiting until age 70 to receive your benefits, you must also be the highest earner throughout your career. Specifically, you need to earn at least the minimum base salary in the 35 years that Social Security uses to calculate your benefit. (In 2025, this limit is $176,100. It will increase to $184,500 next year.)
In other words, you paid the maximum amount you could into Social Security with taxes paid.
Most Social Security recipients will get a tax break
A specific “no tax on Social Security” clause was not included in the spending and tax bill passed by Congress over the summer. But older adults will get a new tax break next year, in a change that President Donald Trump has boasted fulfilled his campaign promise to end Social Security taxes.
The temporary tax deduction is worth up to $6,000 for people over age 65 and $12,000 for elderly married couples filing jointly, depending on income. For people with adjusted gross income (MAGI) above $75,000, the amount will be gradually reduced. You can’t claim the deduction if your MAGI is more than $175,000. For couples, the deduction is limited to MAGIs beginning at $150,000 and phased out entirely at $250,000.
You can claim the new deduction whether you file your return or claim the standard deduction. It is scheduled to run until 2028.
The deduction may end up reducing the tax liability of some seniors who are old enough not to pay any federal income tax on their gains. But about half of Social Security recipients already don’t pay taxes, often because their earnings are too low, according to government statistics. For one thing, the new tax break will reduce taxes paid, rather than eliminate them entirely.
Appointments at local Social Services offices may be reduced
The Social Security Administration aims to cut the number of in-person visits to field offices across the country in half next year, according to an internal plan reviewed by tech news site Nextgov/FCW.
The goal is to reduce the number of visits from more than 31 million to 15 million by fiscal year 2026, the site reports. (The federal government’s fiscal year runs from October to September.)
Field offices provide in-person support to the community with a variety of services, including applying for retirement and disability benefits. The offices will stay ahead, said Barton Mackey, a spokesman for Social Security, told the Associated Press. But technological advances have allowed many Americans to manage benefits online or over the phone.
“The Social Security Administration under President Trump’s leadership is serving more Americans than ever before at a faster pace, and is meeting customers where they want to be served,” Mackey said.
The proposed plan has drawn criticism from some members of Congress. Beneficiaries already have to wait months to get an appointment at a field office, and further reductions in availability are “cutting back benefits by making it harder for Americans to get the Social Security benefits they need,” the senators wrote in a letter last week.
The benefit margin is increasing
You can work while receiving Social Security. But depending on your age and how much you earn, your income may limit your benefits. That said, there is a certain amount of income that is protected – the so-called income limit. This number does not increase every year, but regular updates are common.
In 2026, the limit will rise to $24,480, up from $23,400 this year. That means if you’re under full retirement age in your birthday, the government will reduce your benefit payment by $1 for every $2 you earn above $24,480.
If you reach full retirement age in 2026, the earnings limit is higher, and the reduction is smaller: The amount of protected income jumps to $65,160, up from about $62,160 this year. After you reach that amount, your earnings will be reduced by $1 for every $3 earned.
If you’ve reached full retirement age – 67 for people born in 1960 or later – this doesn’t apply to you. You can earn as much money as you want while still claiming your full benefits.
More from Mali:
Employees think they will need $1 Million to retire. Real Retirees Live on Less
Social Security’s ‘Full Retirement Age’ May Get a Rebrand
Retirees ‘Shocked’ Taxes Will Cancel Social Security COLA
