Social Security Rises 3.6% in 2027. What You'll Actually Keep
See your own safe-to-spend number Free paycheck budget, set up in 60 seconds →Social Security benefits rise 3.6% in January 2027, about $75 a month for the average retired worker. You won't keep all of it. The Medicare Part B premium, taken out of most checks, is projected to rise $6.60, and prices rose 3.7% in the year to September, slightly more than the raise. Workers see a change too: the 6.2% Social Security tax now applies to the first $192,300 of pay, up from $184,500. Here's what the change means at each income and how to budget the new check.
What the 3.6% raise is worth
| Monthly benefit now | After 3.6% | Raise | After a $6.60 Part B increase |
|---|---|---|---|
| $1,200 | $1,243 | +$43 | +$37 |
| $2,000 | $2,072 | +$72 | +$65 |
| $2,800 | $2,901 | +$101 | +$94 |
| $4,000 | $4,144 | +$144 | +$137 |
SSA 2027 COLA of 3.6%. Part B: Medicare Trustees projection of $209.50, not yet announced. Social Security rounds benefits down to the dime.
The raise is set from inflation in July through September, so it roughly tracks prices. It doesn't get you ahead. Prices were up 3.7% in September, and the Part B increase comes out of the raise before you see it. Budget the new check as staying even.
What it means at your income
- Smaller benefits. $43 more on a $1,200 check is real money, but a $6.60 premium increase takes about 15% of it. If you also receive SSI, that raise lands December 31.
- Middle-income retirees. The 2025 tax law added a deduction of up to $6,000 for each person 65 or older, from 2025 through 2028. It shrinks above $75,000 of income ($150,000 for couples) and can lower the federal tax on your benefits.
- Higher-income retirees. Medicare adds a surcharge, called IRMAA, to Part B and Part D premiums above $109,000 of income ($218,000 for couples) in 2026. It uses your tax return from two years earlier, so your 2027 premium depends on 2025 income. A Roth conversion or a big capital gain in 2025 can raise it.
- Working and earning above $184,500. The 6.2% tax now covers $7,800 more of your pay: up to $483.60 more in 2027, or $967.20 if you're self-employed. Medicare's 1.45% has no cap.
- Working while collecting before full retirement age. Social Security holds back $1 for every $2 you earn above $25,560 in 2027. In the year you reach full retirement age, it's $1 for every $3 above $67,920.
High earners: the late-year paycheck bump isn't a raise
Once your pay for the year passes $192,300, the 6.2% Social Security tax stops and your paychecks get bigger until January. Then the tax starts again and the checks shrink back.
| Salary (paid every two weeks) | Tax stops at about | Each check after that |
|---|---|---|
| $200,000 | Paycheck 25 (mid-December) | $477 bigger |
| $250,000 | Paycheck 20 (October) | $596 bigger |
| $400,000 | Paycheck 13 (early July) | $954 bigger |
At $400,000, that's about $12,400 of extra take-home over 13 paychecks. Spent on a new lease, it's gone in January and the lease isn't. Budget it on purpose: savings, next year's taxes, or a goal with a name.
How to budget the new check
- Wait for your real number. Social Security mails a notice in December and posts it in your my Social Security account. Budget from that, not from 3.6%.
- Subtract the new Part B premium once Medicare announces it, usually in November.
- Raise the lines that went up: groceries, insurance, utilities. Health plans cost more in 2027 too. How to budget 2027 health premiums.
- Map bills to your payment date. Most people are paid on the second, third or fourth Wednesday of the month, depending on their birthday. Schedule rent and bills right after it, not before.
- If you still work, plan for the tax cap and for the two-year look-back on Medicare premiums before you sell investments or convert to a Roth.
Budget the January check before it arrives.
MyGood plans each paycheck or benefit payment: the bills due before the next one and what's left after. Free, no bank login.
Try MyGood free → What else changes next year? What a split government means for your money.This article is general education, not tax, legal or investment advice. The 2027 Part B premium is a projection until Medicare announces it.
Sources
- Social Security Administration, Cost-of-Living Adjustment (COLA) Information for 2027 (COLA, taxable maximum, earnings test), October 14, 2026.
- IBTimes, Social Security's 2027 COLA rises 3.6% (average retiree increase of about $75), October 2026.
- Kiplinger, Medicare 2027 projections (Trustees projection of $209.50), 2026.
- Kiplinger, Medicare premiums 2026: IRMAA brackets.
- IRS, One, Big, Beautiful Bill provisions for individuals and workers (senior deduction).
- Bureau of Labor Statistics, Consumer Price Index, September 2026 release (October 14, 2026).
Frequently asked questions
How much is the 2027 Social Security COLA?
Benefits rise 3.6% starting with January 2027 payments, about $75 a month for the average retired worker. SSI recipients get the increase on December 31, 2026.
What is the Medicare Part B premium for 2027?
Medicare had not announced it as of early November 2026. The Medicare Trustees project $209.50 a month, up $6.60 from $202.90 in 2026. Medicare usually announces the new premium in November.
What is the Social Security wage base for 2027?
Social Security tax applies to the first $192,300 of earnings in 2027, up from $184,500. Employees pay 6.2% and self-employed people 12.4% up to that amount. The 1.45% Medicare tax has no cap.
What is the Social Security earnings limit in 2027?
If you are under full retirement age, Social Security withholds $1 for every $2 you earn above $25,560. In the year you reach full retirement age, it withholds $1 for every $3 above $67,920, counting only earnings before that month.
How should I budget for the 2027 Social Security increase?
Use the new amount on your December notice, subtract the new Part B premium, raise the budget lines whose prices went up, and schedule bills right after your payment date. MyGood is a free budgeting app that plans each payment without connecting your bank.