Social Security's 2026 Cost-of-Living Adjustment: Retirees in These 10 States Are Set to Receive the Biggest Increases Next Year

For most retirees, Social Security benefits make up a significant portion of their income, which is why the yearly cost-of-living adjustment (COLA) is always eagerly awaited. The Social Security Administration is set to reveal the 2026 COLA on October 15, assuming the federal government shutdown has concluded by then.

The Senior Citizens League, a nonpartisan group advocating for older adults, recently projected a 2.7% increase in benefits for the coming year. Although every retiree will see their Social Security check rise by the same percentage, the actual dollar amount will differ greatly. Continue reading to discover which 10 states will see retirees receive the largest COLA increases in 2026.

How Social Security's COLA is calculated using third-quarter consumer price changes

The annual COLA for Social Security is determined by changes in the Consumer Price Index (CPI) during the third quarter, which covers July through September. For instance, the CPI rose by 2.5% in the third quarter of 2024, resulting in a 2.5% increase in Social Security payments for 2025.

This percentage increase is applied to each retiree's benefit, factoring in any Medicare premiums and taxes that are automatically withheld. The final amount is then rounded down to the nearest dime. For example, someone receiving $1,750 per month in 2024 would see their benefit rise to $1,793.70 in 2025.

It's important to note that retirees with higher monthly benefits will see larger dollar increases from the COLA. As a result, those living in the 10 states with the highest median Social Security payments will, in total, get the biggest COLA boosts next year, regardless of the actual percentage increase.

The top 10 states for median Social Security payments to retirees

Each year, the Social Security Administration releases an Annual Statistical Supplement, which provides detailed program information and demographic data. The chart below uses figures from the 2025 edition, reflecting data through December 2024, and highlights the 10 states where retirees receive the highest median Social Security benefits.

Source: Social Security Administration. Dollar figures represent benefits paid in December 2024.

Although the state where a retiree lives doesn't directly determine their Social Security income, there is an indirect link. The benefit formula takes into account a person's lifetime earnings and the age at which they claim benefits, so retirees in higher-income states generally receive larger Social Security checks.

In fact, Census Bureau statistics show that five of the states listed above—New Jersey, Connecticut, New Hampshire, Maryland, and Massachusetts—are also among the top 10 states for median household income. Additionally, Delaware, Washington, and Minnesota have median incomes above the national average.

Michigan and Indiana are exceptions to this trend. Despite being among the top 10 states for median Social Security benefits, both have comparatively low median incomes. This could be because many retirees who earned higher wages elsewhere choose to settle in Michigan or Indiana, or perhaps retirees in these states tend to claim benefits at older ages, resulting in higher payments.

On the other hand, California and Washington, D.C. present the opposite scenario: they are among the areas with both the lowest median Social Security benefits and the highest median incomes. This is likely because many retirees leave these regions after retirement due to the higher cost of living.

In summary, while your state of residence doesn't directly affect your Social Security benefit, it does have an indirect impact because benefits are based on lifetime earnings. Therefore, people living in states with higher median incomes are likely to receive larger Social Security payments. However, simply relocating to another state won't change your benefit amount, though it could affect whether your benefits are subject to state income tax.