Taxes, SSI and the other 2027 changes
The COLA isn’t the only number changing in January. Several other Social Security figures rise with it, and one important tax threshold does not.
Taxes on your benefits. Up to 85% of your Social Security can be taxed if your “combined income” passes certain limits. Combined income is your adjusted gross income, plus nontaxable interest, plus half your benefits. Those limits start at $25,000 for single filers and $32,000 for married couples filing jointly, and they have never been adjusted for inflation. So every COLA pushes a few more retirees over the line. If you’re close, your raise could make a small slice of your benefit taxable for the first time.
There is some relief for older taxpayers. For 2025 through 2028, people 65 and older can claim an extra $6,000 deduction on top of the standard deduction, which can offset some of that tax. If federal tax is withheld from your Social Security, check whether your withholding still fits your situation after the raise.
Other official 2027 figures, from the SSA’s 2027 COLA fact sheet and BenefitsUSA’s summary:
| Item | 2026 | 2027 |
|---|---|---|
| Maximum SSI payment, individual | $994/month | $1,029/month |
| Maximum SSI payment, couple | $1,491/month | $1,544/month |
| Earnings limit, under full retirement age all year | $24,480/year | $25,560/year |
| Earnings limit, year you reach full retirement age | $65,160/year | $67,920/year |
| Maximum earnings taxed for Social Security | $184,500 | $192,300 |
| Earnings needed for one work credit | $1,890 | $1,970 |
If you’re still working. If you claimed Social Security before full retirement age and still have a paycheck, the SSA holds back $1 of benefits for every $2 you earn over $25,560 in 2027. In the year you reach full retirement age, it’s $1 for every $3 over $67,920, counting only earnings before your birthday month. That money is not lost: your benefit is recalculated upward once you reach full retirement age.
If you receive SSI. The maximum federal payment rises to $1,029 a month for an individual. The first higher payment arrives on December 31, 2026. Many states add their own supplement on top.
