The Social Security Administration (SSA) has announced significant changes to benefits for 2026 that will affect millions of Americans across retirement, disability, and Supplemental Security Income (SSI) programs.
Among these changes, more than 480,000 Americans receiving Social Security in certain regions, particularly in West Virginia, will benefit from both a Cost‑of‑Living Adjustment (COLA) and the full elimination of state income tax on benefits, resulting in a meaningful increase in net monthly income this year.
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This article delves into these developments, including payment increases, beneficiary counts, key figures, and what these changes mean for Social Security recipients in 2026.
What Is Social Security and Why the 2026 Change Matters
Social Security is a federal program in the United States designed to provide financial support to retirees, people with disabilities, and survivors of deceased workers.
Each year, the SSA adjusts benefit payments through a Cost‑of‑Living Adjustment (COLA) to help benefits keep pace with inflation. For 2026, the SSA confirmed a 2.8 percent COLA increase for beneficiaries, the latest in a series of annual inflation-based adjustments.
This increase means higher monthly checks for about 75 million Americans who receive Social Security and SSI benefits, including retirees, disabled workers, and survivors.
Major Increase for Over 480,000 Americans
A key element of the 2026 changes is that more than 480,000 Americans, especially Social Security recipients in West Virginia, will see a notable increase in their net monthly benefit.
This is primarily due to the state completing a three-year phase-out of its state income tax on Social Security benefits as of January 1, 2026. Before this, benefits were taxed at the state level, reducing net income for retirees.
The elimination of this tax means beneficiaries will keep hundreds of additional dollars annually, directly boosting their take-home pay without increasing the gross benefit amount from the SSA.
Breakdown of 2026 Social Security Changes
Here’s a summary of all major Social Security adjustments impacting recipients in 2026:
| Category | Details for 2026 |
|---|---|
| COLA Increase | 2.8% increase in Social Security and SSI benefits |
| Beneficiaries Affected | ~75 million Americans overall |
| Average Monthly Boost | ~$56 per month for retirement benefits |
| SSI Payment Increase Start | December 31, 2025 |
| Taxable Maximum Earnings | $184,500 (increase from 2025) |
| State Tax Elimination | West Virginia Social Security benefits fully exempt |
| Net Income Increase for ~480,000 | Higher take-home monthly benefits due to no state tax |
| Eligibility Affected | Retirees, disabled workers, survivors, and SSI recipients |
How Much Will Recipients Actually See?
The 2.8 percent COLA results in an average of about $56 more per month for Social Security retirement benefits beginning in January 2026, compared with the 2025 payment amounts.
SSI recipients—who tend to have lower income levels—will see their first COLA increase starting December 31, 2025.
For beneficiaries in West Virginia, the net effect is even larger because they will also avoid paying any state income tax on their Social Security income starting in 2026.
This leads to hundreds of extra dollars in annual income without any change to the underlying SSA benefit calculation.
Who Benefits Most From These Changes
- Retirees receiving Social Security retirement benefits
- Disabled workers and survivors under the OASDI program
- SSI recipients, including low-income elderly and disabled Americans
- Residents of states that have eliminated taxes on Social Security income
The combined effect of the COLA increase and state tax elimination significantly improves financial security for many beneficiaries, particularly those living on fixed incomes.
The Social Security changes for 2026 mark a positive development for more than 480,000 Americans who will see a strong improvement in their financial position this year.
With a 2.8 percent COLA, expanded benefit amounts, and state tax exemptions, recipients are better equipped to handle rising costs of living.
While not all states offer tax relief, those that do provide retirees with meaningful increases in disposable income without additional eligibility requirements.
FAQs
What is the 2026 Cost‑of‑Living Adjustment (COLA) for Social Security?
The 2026 COLA is 2.8 percent, increasing Social Security and SSI benefits starting January 2026 (December 31, 2025 for SSI).
Who are the more than 480,000 Americans seeing a significant increase?
These are Social Security beneficiaries—especially in West Virginia—who benefit from both federal COLA increases and the elimination of state income tax on Social Security benefits.
How much more will recipients get each month?
On average, retirement beneficiaries will get about $56 more per month due to the COLA increase, plus additional savings if state tax on benefits has been removed.