As 2025 draws to a close, millions of Social Security beneficiaries are eagerly awaiting the 2026 Cost-of-Living Adjustment (COLA).
The COLA is tied to inflation using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July through September. This year, the calculation is under extra scrutiny due to a partial government shutdown, which has delayed some economic data releases.
Projections currently place the 2026 COLA at about 2.7%, which, for the average retiree, translates to a raise of approximately $54 per month.
Because COLA is a percentage increase on existing benefits—and because states differ in average benefit levels—retirees in certain states will see larger dollar increases than others.
How Social Security COLA 2026 Is Calculated & Why It Varies by State
The Social Security Administration compares the average CPI-W in Q3 (July, August, September) 2025 with that same period in 2024. If prices have increased, that percentage becomes the COLA for 2026.
Because benefits differ by state, the same COLA yields larger dollar gains where base benefit amounts are higher. States with higher median incomes and higher Social Security payout averages typically see retirees getting a more substantial boost in dollars, even though the percentage is uniform nationwide.
Top 10 States for Biggest Social Security COLA Gains (2026)
Here are the states where retirees are projected to experience the largest dollar increases in their Social Security COLA 2026:
| Rank | State | Projected Average Benefit After COLA | Estimated Monthly Increase |
|---|---|---|---|
| 1 | New Jersey | ~$2,172 | Highest increase in nominal dollars |
| 2 | Connecticut | ~$2,159 | Strong base benefit yields large gain |
| 3 | Delaware | ~$2,139 | Above-average benefit growth |
| 4 | New Hampshire | ~$2,121 | High benefit base |
| 5 | Maryland | ~$2,084 | Solid increase from COLA |
| 6 | Michigan | ~$2,067 | Larger base benefit among Midwest states |
| 7 | Washington | ~$2,061 | West Coast gains stand out |
| 8 | Minnesota | ~$2,053 | Strong benefit baseline |
| 9 | Massachusetts | ~$2,021 | Resident demographic supports high payouts |
| 10 | Indiana | ~$2,016 | Large increase relative to baseline |
These figures reflect how the 2.7% COLA works differently across states because the base benefits differ.
As context, for 2025, the average Social Security payment for retired workers reached a new milestone—$2,000 for the first time, specifically $2,002.39 monthly. With the projected COLA, that average would rise to about $2,062.
Why Some States Benefit More from Social Security COLA 2026
- Higher baseline benefits: Retirees in high-income states often earned more during their careers and thus receive larger benefits.
- Demographics & workforce history: States with higher wages, more coverage, and consistent employment tend to produce higher Social Security payouts.
- Uniform percentage rules: The national COLA is a flat percentage, so it benefits states with higher starting amounts more in raw dollars.
Thus, even though everyone sees the same percentage increase, the dollar gain varies based on where you live.
Impact of Shutdown on Social Security COLA 2026
The government shutdown has complicated the process. Key economic data—especially CPI reports—are under delay.
The Bureau of Labor Statistics recently announced it would release September’s CPI report by October 24, ahead of the statutory deadlines for COLA determination. This move ensures the Social Security Administration (SSA) can still calculate and publish the COLA 2026 on time.
If delays persist, the COLA announcement—which is typically made mid-October—could be pushed.
However, experts assert that, even under these constraints, the data should be published before November 1, the deadline for benefit adjustments.
What Social Security Means for Retirees in 2026
- A 2.7% raise adds roughly $54 per month to average retiree checks.
- In the top 10 states listed, retirees will see higher absolute gains due to strong benefit bases.
- But, Medicare Part B premiums often rise concurrently—sometimes consuming a large portion of the COLA bump.
- For retirees in states not on this list, the increase will still occur, but in smaller dollar amounts.
- While the percentage is fixed nationwide, state differences in benefits make the practical impact unequal.
The Social Security COLA 2026, currently projected at 2.7%, promises a modest boost for retirees nationwide.
But the real impact won’t be uniform: retirees in states like New Jersey, Connecticut, Delaware, and New Hampshire are poised to receive the largest dollar increases, thanks to higher base benefits.
Still, even in those top states, the raise will only go so far when facing rising healthcare costs and premiums. For many older Americans, the COLA helps—but doesn’t eliminate—the tension between fixed incomes and inflation.
The exact figures will become clear when the Bureau of Labor Statistics releases September CPI data later this month, setting the stage for the SSA’s final 2026 adjustment.
FAQs
When will the Social Security COLA 2026 be officially announced?
Social Security COLA 2026 usually announced in mid-October, but due to delays from the shutdown, the BLS plans to publish the CPI data by October 24, allowing the SSA to meet its deadline.
Why do retirees in some states get bigger raises?
Because the Social Security COLA is a fixed percentage, states where average benefits are already higher will see larger dollar increases.
Will Medicare premiums consume the COLA increase?
Quite possibly. If Part B or other healthcare premiums rise, they may offset much of—or even all of—the additional income from the COLA.
