2027 COLA Increase: 3.6% Social Security Raise Confirmed

2027 COLA Increase for Social Security: 3.6% Raise, VA Disability Rates, and Payment Dates

The 2027 Social Security COLA is 3.6%, effective January 2027. This raises the average retired worker’s benefit by about $75 per month, from $2,095 to $2,170. Veterans receiving VA disability compensation, military retirees, and SSI recipients receive the same 3.6% increase. The first payments at the new rates arrive December 31, 2026.

What Is the COLA?

The COLA is an annual adjustment to federal benefits that keeps pace with inflation. Without it, the purchasing power of Social Security checks, VA disability compensation, and military retirement pay would erode as prices for groceries, housing, healthcare, and other essentials rise.

The Social Security Administration calculates the COLA each year using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W measures price changes for a specific basket of goods and services purchased by wage-earning households. The SSA compares the average CPI-W for July, August, and September of the current year to the same three-month period from the previous year. The percentage increase becomes the next year’s COLA. If prices fall, the COLA is zero—benefits never decrease due to deflation.

The 2027 COLA of 3.6% is based on inflation data from the third quarter of 2025 through the third quarter of 2026. It is 0.8 percentage points higher than the 2026 COLA of 2.8% and represents the largest increase since 2023’s 8.7%.

Official 2027 COLA: 3.6%

The Social Security Administration announced the 2027 COLA on October 14, 2026. The 3.6% adjustment applies to nearly 72 million Social Security beneficiaries and about 7.3 million SSI recipients.

SSI recipients receive their first increased payment on December 31, 2026. Social Security beneficiaries receive their first increased payment in January 2027, depending on their scheduled payment date. Almost all Social Security beneficiaries can view their COLA notice online through their my Social Security account starting in late November 2026.

VA Disability Compensation COLA for 2027

Veterans receiving VA disability compensation receive the same 3.6% COLA as Social Security recipients. The increase is effective December 1, 2026, and the first payment at the new rates arrives December 31, 2026.

VA disability compensation is a monthly tax-free payment for veterans with service-connected disabilities. The amount depends on the veteran’s disability rating (10% to 100%) and the number of dependents (spouse, children, parents). The 2027 increase applies to all disability ratings.

2027 VA Disability Compensation Rates (Veteran Alone)

2027 VA Disability Rates with Dependents

Veterans with a 30% or higher disability rating receive additional compensation for dependents. The 3.6% COLA applies to dependent rates as well.

Additional amounts apply for each additional child under age 18, each schoolchild over age 18, and dependent parents. The 2027 rates include these adjustments.

Military Retirement COLA for 2027

Military retirees receive a 3.6% COLA on their retired pay, effective December 1, 2026. This is a $36 increase for each $1,000 of monthly military retirement pension.

Retirees who entered military service on or after August 1, 1986, and opted for the Career Status Bonus (CSB/Redux retirement plan) receive a reduced COLA—one percentage point less than the standard COLA. For 2027, that means a $26 increase per $1,000 of retired pay instead of $36. Survivors receiving Survivor Benefit Plan (SBP) payments receive the same percentage increase as retirees.

Service members who retired during 2026 receive a prorated COLA in 2027 based on the quarter of the year in which they retired. The prorated amount may also adjust based on when the member entered service and which retirement plan they elected.

DIC and Survivor Benefits COLA for 2027

Dependency and Indemnity Compensation (DIC) payments to surviving spouses and dependents of veterans who died from service-connected causes increase by 3.6% in 2027. The base monthly DIC rate for a surviving spouse rises by approximately $61.18.

Surviving spouses who receive DIC can also qualify for other VA benefits including the Survivors’ Pension, the VA home loan program, and education benefits. The COLA applies to all VA survivor benefit programs.

Special Monthly Compensation (SMC) COLA for 2027

Special Monthly Compensation (SMC) is a higher rate of VA disability compensation for veterans who incurred the loss or loss of use of specific organs or extremities due to military service. SMC rates also increase by 3.6% in 2027.

For a 100% disabled veteran receiving SMC, the 2027 increase may range from approximately $176.43 to $405.75 per month, depending on the SMC level. SMC is paid in addition to regular disability compensation. Veterans who qualify for SMC should verify their specific rate with the VA or a Veterans Service Officer (VSO).

How the COLA Is Calculated

The COLA is calculated using the CPI-W, a specific inflation measure that tracks price changes for wage-earning households. The SSA compares the average CPI-W for July, August, and September of the current year to the same three months from the previous year. The percentage increase becomes the COLA.

The CPI-W differs from the more commonly reported CPI-U (Consumer Price Index for All Urban Consumers). The CPI-W gives greater weight to transportation and food costs, which is why the COLA may not perfectly match the inflation rate reported in news headlines.

If the CPI-W decreases from one year to the next, the COLA is zero—benefits do not decrease. This provision protects Social Security recipients and VA beneficiaries from deflation-driven benefit cuts.

The COLA is not a raise in real terms. It adjusts benefits to maintain purchasing power relative to inflation. A higher COLA generally reflects higher prices for goods and services, meaning the increase may simply offset rising costs rather than providing additional spending power.

Medicare Part B Premium Impact on the 2027 COLA

The 2027 COLA of 3.6% outpaces the projected 3.25% increase in Medicare Part B premiums. This is notable because Part B premiums have risen faster than the COLA in seven of the past 10 years. Medicare Part B premiums are typically deducted from Social Security benefits, reducing the net increase beneficiaries see in their monthly checks.

The projected 2027 Part B premium is $209.50 per month, up from $202.90 in 2026—an increase of $6.60. For beneficiaries who have Part B premiums deducted from their Social Security checks, the net increase after the premium deduction is approximately $68 per month for the average retired worker.

Higher-income beneficiaries may pay an income-related monthly adjustment amount (IRMAA) on top of the standard Part B premium. IRMAA surcharges are based on modified adjusted gross income from two years prior. A higher income in 2027 could result in higher Part B premiums in 2029, depending on IRMAA thresholds at that time.

VA Disability Payment Dates for 2027

VA disability compensation payments arrive on the first business day of each month. Because VA pays benefits in arrears, each payment covers the previous month. When the first of the month falls on a weekend or federal holiday, VA pays on the last business day before it, so some payments arrive at the end of the same month.

In April, July, and December 2027, veterans receive two VA disability deposits in the same month. This happens when the first of the next month falls on a weekend or holiday. The early deposit is not extra compensation—it is the next regular payment arriving ahead of schedule, so the following month has no deposit.

Social Security Payment Dates for 2027

Social Security payments are distributed on a staggered schedule based on the beneficiary’s birth date. Beneficiaries born on the 1st through the 10th receive payments on the second Wednesday of each month. Those born on the 11th through the 20th receive payments on the third Wednesday. Those born on the 21st through the 31st receive payments on the fourth Wednesday. SSI recipients receive payments on the first of the month.

The first Social Security payment at the 2027 COLA rate depends on the beneficiary’s scheduled payment date in January 2027. SSI recipients receive their first increased payment on December 31, 2026.

Who Qualifies for the 2027 COLA?

Nearly all federal benefit recipients automatically receive the COLA. There is no application required. The COLA is applied automatically to benefits administered by the Social Security Administration, the Department of Veterans Affairs, and the Department of Defense.

Social Security recipients. Retired workers, disabled workers, dependents, and survivors receiving Social Security benefits receive the COLA automatically.

SSI recipients. Supplemental Security Income recipients receive the COLA automatically. The SSI federal payment standard increases from $994 to $1,029 per month for individuals and from $1,491 to $1,544 for couples.

VA disability compensation recipients. Veterans receiving monthly VA disability compensation receive the COLA automatically. The increase applies to all ratings from 10% to 100%, including additional amounts for dependents.

VA pension recipients. Veterans receiving VA pension (for wartime service and financial need) receive the COLA automatically.

DIC recipients. Surviving spouses, children, and parents receiving Dependency and Indemnity Compensation receive the COLA automatically.

Military retirees. Retired service members receiving military retired pay receive the COLA automatically, except those under the Redux retirement plan who receive a reduced COLA.

Survivor Benefit Plan recipients. Survivors receiving SBP payments receive the same percentage increase as military retirees.

Required Documents and Application

No application is required for the COLA. The increase is applied automatically to qualifying benefits. Beneficiaries do not need to submit any forms, contact the SSA or VA, or take any action to receive the increase.

If you receive Social Security and want to view your COLA notice, create a my Social Security account at ssa.gov/myaccount. COLA notices are available online starting in late November 2026—up to three weeks before the paper notice arrives by mail. Account holders can opt in to receive text or email alerts when a new message, including the COLA notice, is available in their Message Center.

If you receive VA disability compensation and believe your payment amount is incorrect, contact the VA or a VSO. You can also check your payment history through VA.gov.

Common Mistakes to Avoid

Confusing the COLA with a real raise. The COLA adjusts benefits for inflation. It does not increase purchasing power—it maintains it. A 3.6% COLA reflects 3.6% inflation in the CPI-W measure.

Assuming the full COLA reaches your bank account. Medicare Part B premiums, IRMAA surcharges, and other deductions are taken from Social Security benefits before payment. The net increase may be smaller than the COLA percentage.

Not checking your COLA notice. The COLA notice shows the exact dollar amount of your new benefit and any deductions. Review it to confirm your payment is correct.

Forgetting that VA and military retirement COLA is effective December 1. The Social Security COLA takes effect in January, but VA disability compensation and military retired pay increase effective December 1, 2026. The first payment at the new rate arrives December 31, 2026.

Missing the Redux reduction. Retirees under the CSB/Redux plan receive a COLA one percentage point lower than the standard COLA. For 2027, that is 2.6% instead of 3.6%, or $26 per $1,000 of retired pay instead of $36.

Overlooking state tax implications. Some states do not tax Social Security benefits. Others do. The COLA increases the taxable amount in states that tax benefits. Check your state’s rules.

State Differences

State tax treatment of Social Security and VA benefits varies widely. Most states do not tax Social Security benefits, but a handful still do.

States that tax Social Security benefits. As of 2026, only a few states tax Social Security benefits. These include Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. Rules and exemptions vary by state and income level.

States that do not tax Social Security. Most states—including Florida, Texas, Nevada, Washington, and Tennessee—do not tax Social Security benefits. Many of these states also have no state income tax at all.

VA disability compensation. VA disability compensation is not taxable at the federal level and is not taxable in any state. The COLA does not affect the tax-exempt status of VA disability payments.

Military retirement pay. Some states exempt military retirement pay from state income tax. Others tax it fully or partially. The COLA increases the taxable amount in states that tax military retirement.

Property tax exemptions. Many states offer property tax exemptions for disabled veterans and surviving spouses. These exemptions are separate from the COLA and are based on disability rating and other factors. Contact your local tax assessor for details.

Latest Rule Changes

AUTO Act implementation. The AUTO Act of 2023 changed the VA automobile allowance from a once-in-a-lifetime benefit to one that can be received every 10 years. The 2026 rate increased to $27,908.90. This is separate from the COLA but affects the overall value of veterans benefits.

PACT Act expansion. The PACT Act expanded VA healthcare and disability compensation eligibility for veterans exposed to burn pits, Agent Orange, and other toxic substances. Veterans who qualify under the PACT Act receive the same COLA increase as other disability compensation recipients.

SSI payment standard increase. The SSI federal payment standard increases from $994 to $1,029 per month for individuals and from $1,491 to $1,544 for couples in 2027. The SSI student exclusion monthly limit increases from $2,410 to $2,500.

Social Security earnings test adjustment. The retirement earnings test exempt amount increases from $24,480 to $25,560 per year for beneficiaries under full retirement age. The exempt amount for the year an individual reaches full retirement age increases from $65,160 to $67,920.

Substantial gainful activity threshold. The SGA threshold for non-blind Social Security disability recipients increases from $1,690 to $1,770 per month. The blind SGA threshold increases from $2,830 to $2,950.

Common Questions

What is the 2027 Social Security COLA?

The 2027 Social Security COLA is 3.6%, effective January 2027. It raises the average retired worker’s benefit by about $75 per month, from $2,095 to $2,170. The adjustment applies to Social Security, SSI, VA disability compensation, military retired pay, and DIC.

When does the 2027 COLA take effect?

The COLA takes effect in January 2027 for Social Security benefits. For VA disability compensation and military retired pay, the COLA is effective December 1, 2026. The first payment at the new rates arrives December 31, 2026, for VA and SSI recipients.

How much will my VA disability check increase in 2027?

A veteran with a 10% disability rating receives $186.92 per month in 2027, up from $180.53—a $6.39 increase. A 100% disabled veteran without dependents receives $4,080.37, up from $3,938.58—a $141.79 increase. The exact amount depends on your rating and dependents.

Do military retirees get the same COLA as Social Security recipients?

Yes. Military retirees receive the same 3.6% COLA as Social Security recipients. This equals a $36 increase for each $1,000 of monthly retired pay. Retirees under the CSB/Redux plan receive a reduced COLA of 2.6%, or $26 per $1,000.

Will Medicare premiums reduce my COLA increase?

Medicare Part B premiums are projected to increase 3.25% in 2027, to $209.50 per month. Since Part B premiums are deducted from Social Security benefits, the net increase is smaller than the full COLA. The average retiree’s net increase after the premium deduction is about $68 per month.

How is the COLA calculated?

The COLA is based on the CPI-W from July through September compared to the same period the prior year. The SSA announced the 2027 COLA on October 14, 2026, based on third-quarter inflation data. The CPI-W measures price changes for wage-earning households.

Do I need to apply for the COLA?

No. The COLA is applied automatically to Social Security, SSI, VA disability compensation, military retired pay, and DIC. No application or paperwork is required. You will receive a COLA notice by mail or online through your my Social Security account.

What is the COLA for DIC in 2027?

DIC payments increase by 3.6% in 2027. The base monthly rate for a surviving spouse increases by approximately $61.18. DIC with dependent children, housebound allowance, or aid and attendance also increases by 3.6%.

Will the COLA increase my state taxes?

It depends on your state. Most states do not tax Social Security benefits. If your state taxes Social Security or military retirement pay, the COLA increases the taxable amount. VA disability compensation is not taxable in any state.

What if the COLA is zero?

If the CPI-W decreases from one year to the next, the COLA is zero. Benefits do not decrease due to deflation. The COLA was zero in 2010, 2011, and 2016 when inflation was very low or negative.

Key Takeaways

• The 2027 Social Security COLA is 3.6%, effective January 2027 for Social Security and December 1, 2026, for VA disability compensation and military retired pay.

• The average retired worker’s Social Security benefit increases by about $75 per month, from $2,095 to $2,170.

• VA disability compensation increases 3.6% for all ratings; a 100% disabled veteran without dependents receives $4,080.37 per month.

• Military retirees receive $36 per $1,000 of monthly retired pay; Redux retirees receive $26 per $1,000.

• DIC payments increase by approximately $61.18 per month for a surviving spouse.

• SSI recipients receive their first increased payment on December 31, 2026; the individual federal payment standard rises to $1,029 per month.

• Medicare Part B premiums are projected to rise 3.25% to $209.50 per month, reducing the net COLA increase for beneficiaries with premium deductions.

• No application is required for the COLA—it is applied automatically to qualifying benefits.

• The COLA is based on the CPI-W from July through September; it adjusts benefits for inflation but does not increase purchasing power.

• VA disability payment dates follow the first business day of the month; April, July, and December 2027 have two deposits due to weekend and holiday scheduling.

Official Resources

• SSA 2027 COLA Fact Sheet: ssa.gov/news/en/cola/factsheets/2027.html

• SSA Press Release (October 14, 2026): ssa.gov/news/en/press/releases/2026-10-14.html

• My Social Security Account: ssa.gov/myaccount

• VA Disability Compensation Rates: va.gov/disability/compensation-rates

• VA Special Benefit Allowance Rates: va.gov/disability/compensation-rates/special-benefit-allowance-rates

• Medicare Part B Premiums and Deductibles: medicare.gov/basics/costs/medicare-costs

• DFAS Military Retired Pay COLA: dfas.mil

• USA.gov Veterans Benefits Portal: usa.gov/veterans-benefits