The 2026 Social Security changes you need to know
Social Security is changing in 2026 in ways that affect how much you receive, when you can claim, and how your benefits are taxed. The most visible change is the increase in the full retirement age — the age at which you receive your full benefit amount without reduction. For people born in 1960, the full retirement age moves to 67 in 2026. At the same time, the earnings test that reduces benefits for people who work while claiming early changes its rules. The bend points that determine how much of your earnings convert to benefits shift upward each year, and the taxation rules for combined income remain the same but affect more people as wages rise.
These changes happen automatically under formulas written into Social Security law decades ago. No new legislation is required. The Social Security Administration publishes the specific dollar amounts and age thresholds each October for the following year, so the 2026 figures became official in October 2025.
Key Takeaways
- The full retirement age reaches 67 for people born in 1960, meaning claiming at 62 results in a larger permanent reduction than it did for earlier birth years.
- The earnings test allows you to earn up to a certain amount per year while claiming benefits before full retirement age; the 2026 limit is higher than 2025 but the reduction rate stays the same.
- Bend points — the income thresholds that determine your benefit amount — increase each year based on wage growth, affecting both new claimants and people calculating what they will receive.
- The taxation of Social Security benefits follows the same rules in 2026 as in previous years, but more people may owe taxes on benefits as their other income rises.
- The cost-of-living adjustment (COLA) for 2026 was announced in October 2025 and determines the percentage increase all beneficiaries receive in their January 2026 payment.
Full retirement age moves to 67 for people born in 1960
The full retirement age — sometimes called normal retirement age — is the age at which Social Security calculates your benefit as 100 percent of your primary insurance amount. For people born in 1960, this age becomes 67 in 2026. For people born in 1959, it was 66 and 10 months in 2025. The age continues to increase by two months per birth year until it reaches 67 for people born in 1960 and later.
This change affects how much you lose if you claim before full retirement age. If you claim at 62 — the earliest age you can claim — your benefit is reduced by a percentage that depends on how many months early you are claiming. For someone born in 1960 claiming at 62, the reduction is approximately 30 percent. For someone born in 1943 or earlier, when full retirement age was 65, the reduction at 62 was 20 percent. The longer the gap between 62 and your full retirement age, the larger the reduction.
Claiming after full retirement age increases your benefit by 8 percent per year until age 70. This delayed retirement credit remains the same in 2026.
Earnings test limits and reduction rates for 2026
The earnings test reduces your Social Security benefit if you work and claim benefits before reaching full retirement age. The test applies only to wages and self-employment income, not to pensions, investments, or other unearned income. In 2026, you can earn up to a certain amount per year without any reduction. For every dollar you earn above that limit, Social Security withholds 50 cents in benefits.
The 2026 earnings limit is higher than the 2025 limit because it adjusts each year based on national wage growth. The Social Security Administration announces the exact dollar amount in October of the prior year. In the year you reach full retirement age, a different (higher) earnings limit applies to income earned only in the months before you reach full retirement age, and the reduction rate is 1 dollar withheld for every 3 dollars earned above that limit.
Once you reach full retirement age, the earnings test no longer applies. You can earn any amount without affecting your benefit.
Bend points increase with wage growth
Bend points are the income thresholds Social Security uses to calculate your benefit amount. They determine what percentage of your average earnings becomes your benefit. The first bend point covers lower earnings and replaces a higher percentage; the second bend point covers middle earnings and replaces a lower percentage; earnings above the second bend point replace an even smaller percentage. This structure means people with lower lifetime earnings receive a higher percentage of their earnings as a benefit.
Bend points increase each year based on the growth in national average wages. The 2026 bend points will be higher than the 2025 bend points. This affects both people claiming for the first time in 2026 and anyone recalculating their benefit. The Social Security Administration publishes the 2026 bend points in October 2025.
If you have already claimed and are receiving benefits, your benefit amount itself does not change based on bend points — it is locked in at the amount you were awarded. However, if you are still working and your earnings record is being updated, a future recalculation of your benefit (which happens automatically in some cases) would use the current bend points.
How Social Security benefits are taxed in 2026
Social Security benefits may be subject to federal income tax depending on your combined income. Combined income is the sum of your adjusted gross income, nontaxable interest, and half of your Social Security benefits. The tax thresholds that determine whether you owe tax on benefits are the same in 2026 as they have been for decades: $25,000 for single filers and $32,000 for married couples filing jointly.
These thresholds do not adjust for inflation. As wages and other income rise over time, more people cross these thresholds and owe tax on a portion of their benefits. If your combined income exceeds the threshold, up to 50 percent of your benefits may be taxable, or up to 85 percent if your combined income is very high. The exact amount depends on how far above the threshold you are.
The taxation rules themselves do not change in 2026. What changes is the number of people affected, because their other income has grown while the thresholds have remained fixed.
Cost-of-living adjustment for 2026
The cost-of-living adjustment (COLA) is the percentage increase applied to all Social Security benefits each January. It is calculated based on inflation measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the prior year through the third quarter of the current year. The 2026 COLA was announced in October 2025 and applies to the January 2026 payment.
The COLA affects the benefit amount you receive, not the rules for claiming or taxation. If you are already receiving benefits, your January 2026 payment will be higher by the COLA percentage. If you claim for the first time in 2026, your benefit is calculated using your earnings record and bend points, then the COLA is applied to that amount.
Changes to the Primary Insurance Amount calculation
The Primary Insurance Amount (PIA) is the benefit amount Social Security calculates for you based on your earnings record. The formula that converts your average indexed monthly earnings into a PIA uses the bend points described above. In 2026, the bend points increase, which means the same earnings history produces a different (usually higher) benefit amount.
Additionally, the average indexed monthly earnings (AIME) — the average of your highest 35 years of earnings, adjusted for wage growth — is recalculated each year for people still working. If you are still employed in 2026, your AIME may change based on your new earnings and the indexing factors Social Security applies to past years' earnings.
These changes are technical but important if you are trying to estimate what your benefit will be. Online benefit calculators on the Social Security Administration website use current bend points and indexing factors, so a calculation done in 2026 will reflect 2026 rules.
Frequently Asked Questions
Does the full retirement age change affect people who already claimed?
No. Your benefit amount was set when you claimed and does not change based on changes to the full retirement age for future claimants. However, if you are still working and your benefit is being reduced by the earnings test, the earnings test rules for 2026 explore to you.
Will my benefit go up automatically in 2026?
Yes, if you are already receiving benefits, your January 2026 payment will include the 2026 COLA increase. You do not need to do anything. If you have not yet claimed, your benefit will be calculated using 2026 bend points and the COLA will be applied to that amount.
How do I know what my 2026 benefit will be if I claim?
You can create a my Social Security account on ssa.gov and view your benefit estimate. The estimate uses current bend points and your actual earnings record. You can also call Social Security at 1-800-772-1213 to speak with a representative who can provide an estimate.
Does the earnings test explore to all income?
No. The earnings test applies only to wages from employment and net self-employment income. It does not explore to pensions, investment income, rental income, or other unearned income. Once you reach full retirement age, the earnings test does not explore to any income.
Why do the tax thresholds for Social Security benefits never change?
The thresholds were set in 1983 and have not been adjusted since. Congress would need to pass new legislation to change them. As a result, more people owe tax on benefits each year as wages and other income rise.