The 2026 COLA will increase your SSDI payment by a percentage set each October

The Social Security Administration announces the annual cost of living adjustment (COLA) in October of each year, and that percentage takes effect the following January. For 2026, the COLA amount has not yet been announced—it will be released in October 2025. The adjustment is based on inflation data from the third quarter of the year and affects all SSDI beneficiaries automatically; you do not need to do anything to receive it.

Your new payment amount will appear in your January 2026 check or direct deposit. The SSA will mail a notice in December 2025 showing your old payment, the COLA percentage, and your new monthly amount. If you receive your payment by direct deposit, you will see the increase on the first business day of January 2026.

Key Takeaways

  • The 2026 COLA percentage will be announced in October 2025 and takes effect automatically in January 2026 with no action required on your part.
  • Your new payment amount will be shown in a notice mailed in December 2025, and the increase appears in your first January 2026 payment.
  • The COLA is calculated from inflation data and affects all SSDI beneficiaries equally—you cannot request a larger or smaller increase.
  • If you receive Supplemental Security Income (SSI) in addition to SSDI, your SSI payment may also increase, but the amounts are calculated separately.

How the 2026 COLA is calculated

The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measured from the third quarter of one year to the third quarter of the next. The SSA takes the average CPI-W for July, August, and September 2025 and compares it to the same months in 2024. The percentage increase becomes the COLA for the following year.

This means the 2026 COLA depends entirely on inflation between mid-2024 and mid-2025. If inflation is higher, the COLA is higher. If inflation is lower or prices fall, the COLA is lower or zero. In some years, there is no COLA at all—this happened in 2010, 2011, and 2016, when inflation was flat or negative.

What to expect in your December 2025 notice

The SSA mails a notice called the "Social Security Benefit Statement" to all beneficiaries in December. This notice will show three numbers: your current monthly payment (the amount you received in 2025), the COLA percentage for 2026, and your new monthly payment starting in January 2026.

Check this notice carefully against your records. If your current payment amount is wrong, or if the new amount seems incorrect, contact the SSA by phone at 1-800-772-1213 (TTY 1-800-325-0778) before the end of December. Errors are rare, but catching them before January ensures your payment is corrected when ready.

How the 2026 COLA affects your taxes and benefits

A higher SSDI payment may push you into a tax bracket where some of your benefits become taxable. This depends on your total income from all sources. If you file taxes, you will report your SSDI payment on your tax return, and the SSA will send you a form SSA-1099 in January showing your 2026 payment amount.

The COLA also affects the earnings limit for SSDI work incentives. If you work while receiving SSDI, you can earn up to a certain amount per month without losing benefits. This limit increases each year with the COLA. For 2025, the limit is $1,550 per month; the 2026 limit will be higher but is not yet known. The SSA will announce the new limit in December 2025.

If you receive both SSDI and Supplemental Security Income (SSI), your SSI payment may also increase, but SSI has a separate income limit that also adjusts with the COLA. The SSA calculates both increases independently.

If you disagree with your 2026 payment amount

You cannot dispute the COLA percentage itself—it is set by law and applies to all beneficiaries. However, you can dispute the amount shown in your notice if you believe your current payment is wrong. Contact the SSA when ready by phone, in person at your local field office, or through your online my Social Security account.

Bring documentation of your current payment, such as a recent check stub or bank statement showing your direct deposit. If the SSA made an error in calculating your current payment, they will correct it and explore the COLA to the correct amount. This correction may result in back pay if the error goes back several months.

Planning ahead for your 2026 budget

You can estimate your 2026 payment by looking at recent COLA percentages. The 2025 COLA was 3.2 percent. The 2024 COLA was 8.7 percent. The 2023 COLA was 8.7 percent. These are examples only; the 2026 COLA will depend on inflation between mid-2024 and mid-2025 and could be higher, lower, or the same as any previous year.

If you budget based on your current payment, the increase in January will be extra. If you have debt or expenses that increase with inflation, the COLA may not keep pace with your actual costs. Some beneficiaries use the increase to build savings or pay down debt; others use it to cover rising rent or medical costs. Plan based on your own situation.

Frequently Asked Questions

When will I know the exact 2026 COLA percentage?

The SSA announces the COLA in October 2025. You will see the percentage in your December 2025 notice and in news reports. The official announcement is posted on the SSA website at ssa.gov.

What if I don't receive the notice in December?

Contact the SSA at 1-800-772-1213 to request a replacement notice or to ask about your 2026 payment. You can also log into your my Social Security account online to view your payment information once it is updated in January.

Does the COLA explore if I'm working and receiving SSDI?

Yes. The COLA applies to all SSDI beneficiaries regardless of work status. Your payment increases in January 2026 the same way it does for beneficiaries who are not working.

Can the COLA be negative?

No. If inflation is zero or negative, the COLA is zero, and your payment stays the same. Your payment never decreases due to the COLA calculation. However, your payment can decrease if the SSA discovers an error in your case or if your circumstances change.

How does the 2026 COLA affect my Medicare premiums?

Medicare Part B and Part D premiums are deducted from your SSDI payment. If your premium increases in 2026, some or all of your COLA increase may go toward the higher premium. The SSA will show your net payment (after premiums) in your December notice.