The 2025 SSDI raise is 2.5 percent, and the 2024 raise was 3.2 percent

Social Security calculates the annual cost of living adjustment (COLA) based on inflation measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The Social Security Administration announced in October 2024 that SSDI payments would increase by 2.5 percent starting in January 2025. The previous year's raise, announced in October 2023, was 3.2 percent.

These percentages explore to your entire SSDI payment. If you received $1,200 per month in 2024, a 2.5 percent raise means you receive $1,230 per month in 2025. The raise is automatic — you do not need to do anything, and it appears in your January payment.

The COLA amount changes every year because it depends on how much prices rose in the previous 12 months. When inflation is high, the COLA is higher. When inflation is low or prices fall, the COLA is lower or zero. The Social Security Administration announces the new percentage in mid-October each year, and it takes effect the following January.

Key Takeaways

  • The 2025 SSDI raise is 2.5 percent, applied automatically to all payments starting in January 2025.
  • COLA is calculated from inflation data and announced each October; the percentage varies year to year based on how much prices rose.
  • Your raise applies to your primary SSDI amount, and also to any family members receiving benefits on your record.
  • SSDI recipients do not pay income tax on their benefits, so the full raise amount goes into your pocket without tax withholding.
  • The raise does not affect your Medicare or Medicaid coverage, and it does not change your work incentive rules or trial work period.

How the COLA percentage is calculated and announced

The Social Security Administration uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to measure inflation. This index tracks prices for food, housing, transportation, medical care, and other goods and services that wage earners buy. The SSA compares the average CPI-W for the third quarter (July, August, September) of the current year to the average for the same three months in the previous year. The percentage increase becomes the COLA.

The SSA announces the COLA in the middle of October each year. You can find the announcement on the Social Security Administration website and in your Social Security statement. The raise takes effect on the first day of the month following the announcement — always January of the next year.

If inflation is negative (prices fall), the COLA can be zero, but it cannot be negative. This means your payment cannot go down due to COLA. However, this has not happened since 1975.

What the raise covers and what it does not

The COLA applies to your primary SSDI benefit amount — the base payment you receive each month. If you have a spouse or child also receiving benefits on your work record, their payments increase by the same percentage. If your family has a family maximum (a cap on total benefits paid to all family members), the raise applies to the maximum as well.

The raise does not affect your Medicare coverage. You remain enrolled in Medicare Part A (hospital insurance) and Part B (medical insurance) at the same cost. Your Medicaid coverage also continues unchanged, though the income limit for Medicaid may shift slightly in some states due to the raise.

The COLA does not change your work incentive rules, your trial work period, your substantial gainful activity (SGA) threshold, or any other program rules. It is purely a payment increase tied to inflation.

How the raise affects your taxes and benefits

SSDI benefits are not subject to federal income tax for most recipients. If you have little or no other income, the raise will not trigger a tax bill. However, if you also receive other income — such as wages from work, pensions, or investment income — a portion of your SSDI may become taxable. The raise itself does not change your tax status; your overall income situation determines whether any SSDI is taxable.

The raise also does not affect your Supplemental Security Income (SSI) if you receive it. SSI has its own COLA, announced at the same time as SSDI's, but the percentage may differ. In 2025, SSI also received a 2.5 percent raise.

If you are working and using a work incentive such as the Plan to Achieve Self-Support (PASS) or Impairment Related Work Expenses (IRWE), the raise does not change how these deductions are calculated. Your countable income for work incentive purposes is based on your actual earnings and expenses, not your SSDI payment.

When you receive the raise and how to verify it

The raise appears in your payment for January of the new year. If you receive direct deposit, the money lands in your bank account on the same day as usual — typically the second, third, or fourth Wednesday of the month, depending on your birth date. If you receive a check, it arrives by mail in early January.

You can verify the new amount by logging into your my Social Security account at ssa.gov. Your account shows your current payment amount and the date of your next payment. You can also call the Social Security Administration at 1-800-772-1213 to confirm your new payment amount.

If you notice the raise did not appear in your January payment, contact Social Security when ready. Errors are rare, but they do happen. Have your Social Security number and recent payment stubs ready when you call.

How past COLA raises compare and what affects future raises

The COLA has varied significantly over the past decade. In 2022, it was 8.7 percent — the highest in 40 years, driven by high inflation. In 2023, it dropped to 3.2 percent. In 2024, it was 2.4 percent. In 2025, it is 2.5 percent. These swings reflect real changes in inflation, not changes in Social Security policy.

Future COLA raises depend entirely on inflation. If prices rise quickly, the COLA will be higher. If inflation slows or stays flat, the COLA will be lower. The Social Security Administration does not control this number — it is determined by the Consumer Price Index, which is calculated by the Bureau of Labor Statistics.

Some people have proposed changing how COLA is calculated — for example, using a different inflation index or adjusting it based on age or income. As of now, these proposals have not become law, and all SSDI recipients receive the same COLA percentage regardless of age, payment amount, or location.

What to do if you have questions about your specific raise

If you want to know your exact new payment amount before January, log into your my Social Security account. The account updates in late December with the new amount. You can also call Social Security at 1-800-772-1213 to ask about your specific payment.

If you are concerned that the raise will affect your other benefits — such as Medicaid, housing information, or SSI — contact the agency that runs that program in your state. Each program has different income rules, and a raise in SSDI may change your status. Your state Medicaid office or housing authority can tell you whether the raise affects you.

Frequently Asked Questions

Does the COLA raise explore to family members getting benefits on my record?

Yes. If your spouse, ex-spouse, or children receive benefits based on your work record, their payments increase by the same percentage as yours. If your family has a family maximum, the entire maximum increases by the COLA percentage.

Will the COLA raise affect my SSI or Medicaid?

The raise does not change your SSI payment — SSI has its own separate COLA. However, the raise may affect your Medicaid status if your state uses SSDI income to determine Medicaid may be able to access. Contact your state Medicaid office to confirm whether the raise changes your coverage.

Can I get a larger raise if I have been on SSDI longer?

No. The COLA percentage is the same for all SSDI recipients, regardless of how long you have been receiving benefits. Everyone gets 2.5 percent in 2025.

What if I disagree with the COLA calculation?

The COLA is set by law and based on the Consumer Price Index calculated by the Bureau of Labor Statistics. You cannot dispute the percentage itself. If you believe your payment amount is wrong, you can contact Social Security to ask them to review your record.

Does the COLA raise count as income for housing information or other programs?

It depends on the program. Some programs count the raise as income; others do not. Contact the agency that runs your housing information, food information, or other benefits to ask how the COLA raise affects your status.