Are You Getting a Raise? 2026 Cost-of-Living Adjustments Have Been Announced!

 

Every year, Social Security and some states and cities adjust how much they pay based on cost-of-living increases. Social Security calls this COLA (cost-of-living adjustment). The increase amount is based on a formula using information shared by the Consumer Price Index.

Social Security

For SSI recipients:
The maximum amount of SSI an individual can receive will increase from $967/month to $994/month while the maximum amount of SSI a couple can receive will increase from $1,450/month to $1,491/month. The SSI resource limit of $2,000 for an individual and $3,000 for a couple will remain the same. Resource limits do not receive annual COLA increases.

For SSDI recipients:
SSDI beneficiaries will see a 2.8% increase in their benefit starting in January. You can find out how much your benefit will be increasing using this formula:

Your current SSDI benefit x 0.028 = Benefit increase

For example, if your SSDI check is currently $1,200/month:

$1,200 x 0.028 = $33.60

This means your benefit will increase by $33.60 and your new benefit amount will be $1,233 ($1,200 + $33.60). Social Security always rounds down to the nearest whole dollar.

If you receive SSDI and work, the Trial Work Period amount will increase from $1,160 to $1,210/month and the Substantial Gainful Activity level will increase from $1,620/month to $1,690/month.

For those applying for benefits:
The Substantial Gainful Activity level, which is used to determine eligibility for benefits, will increase from $1,620/month to $1,690/month. If you are earning more than the Substantial Gainful Activity level, your benefits application will not be approved.

Minimum Wage

Washington will increase its minimum starting January 1, from $16.66/hour to $17.13/hour. Seattle’s minimum wage will increase from $20.76/hour to $21.30/hour. Other areas in Washington that have their own minimum wages may also see an increase.

Oregon adjusts its minimum wage annually, but their changes go into effect July 1 each year. Information about Oregon’s next minimum wage adjustments will be available in May.

Idaho will continue to use the federal minimum wage of $7.25/hour and has no plans to increase it at this time.

Impact on Other Benefits

When the amount of income you receive changes, it can impact the amount of other public benefits you receive, like SNAP benefits. You are responsible for reporting changes in income to the agency providing the benefit.

If you need help understanding any of these changes, a Financial Coach at Northwest Access Fund can help!

Have questions? Ask a Coach!