2026 Updates: Social Security & Medicare Part B Premiums
The Social Security Administration and the Centers for Medicare and Medicaid Services recently announced important figures for 2026. From the cost-of-living adjustments to a hike in Medicare premiums, Social Security beneficiaries will see a few changes.
Cost-of-Living Adjustment (COLA)
Social Security recipients will receive a 2.8% increase in 2026, up from last year’s 2.5%. The adjustment for 2026 is more in line with the average increase over the last 20 years (2.6%). This increase is expected to add $56 per month on average to Social Security retirement benefits, according to the Social Security Administration. This equates to an average monthly retirement benefit of $2,071.
The COLA applies to survivor benefits, family benefits, Social Security Disability Insurance (SSDI), and retirement benefits. Retirees will receive a statement in December with the exact dates and dollar amounts of their new monthly benefit for 2026. The cost-of-living adjustment notice was also available online in November.
Medicare Part B Premiums
Medicare Part B premiums will increase 9.7% in 2026 to $202.90, up from $185 in 2025. This premium increase will offset the COLA by roughly $17.90 per month, on average. This rate applies to individuals whose 2024 income was $109,000 or less, and to married couples who file jointly with an income of $218,000 or less. If your modified adjusted gross income (MAGI) is above these thresholds, you will pay higher premium rates.
There are actually multiple tiers to these income thresholds. The next tier is for individuals with MAGI between $109,000 and $137,000, and married couples filing jointly with MAGI between $218,000 and $274,000. If you fall into this tier, your Medicare Part B premium is $284.10. This extra charge is called the income-related monthly adjustment amounts, or IRMAA.
This premium change represents nearly a 10% increase in the base premium. Whereas last year, premiums rose by approximately 5%. Additionally, the annual deductible for all Medicare Part B beneficiaries will increase to $283 in 2026, up from $257 in 2025.
Social Security Earnings Test
For those who start Social Security benefits and are still working, you need to be mindful of something called the Social Security earnings test. If you have earned income above a certain threshold, the Social Security Administration will start withholding some of your retirement benefit.
For every $2 earned above the annual limit, Social Security withholds $1 from your benefit. In the year you reach full retirement age, the withholding changes to $1 for every $3 earned above the limit. For 2026, the earnings test wage limit is $24,480, up from $23,400 in 2025. In the year you reach full retirement age, the wage limit is $65,160, up from $62,160 in 2025. Once you reach full retirement age, the earnings test no longer applies to you.
Social Security Tax Wage Base
While you are working, you pay 6.2% of your gross income into Social Security. However, you only pay this 6.2% up to a certain income amount. This is referred to as the “wage base”. For 2026, the wage base is $184,500, up from $176,100 in 2025. Only earnings subject to Social Security tax count toward calculating your average earnings. So, for individuals who earn more than the wage base, that amount is not included in their Social Security benefit calculation.
It’s important to stay up to date with these changes taking effect next year. If you have not received a new benefit statement yet, you should by the end of the month. If you have other income sources, be mindful that Medicare Part B premiums are based on income tax returns from two years prior. For example, your tax return at age 63 will determine your Medicare premiums when enrolling at age 65. If an increased premium is a concern, I recommend working with a financial professional to plan ahead.