Social Security Changes 2027: People receiving Social Security are heading into 2027 with several proposals being discussed in Washington. Some could increase benefits while others focus on bringing more money into the program. None of these proposals have become law yet.
The biggest concern is Social Security’s finances. The 2026 Trustees Report says the retirement and survivors trust fund, known as OASI, is projected to run out of reserves in the fourth quarter of 2032. At that point, the program would have enough ongoing income to pay about 78% of scheduled benefits under current law. The combined Social Security trust funds are projected to have enough reserves and income to pay full scheduled benefits until 2034, with 83% payable after depletion.
Social Security Payroll Tax Rate 2027: Could Workers Pay More?
Higher Earners Could Face More Social Security Tax
One proposal backed by Sens. Elizabeth Warren and Bernie Moreno would remove the current Social Security payroll tax cap. In 2026, workers pay the 6.2% Social Security tax on earnings up to $184,500. Employers generally pay another 6.2%. Self-employed workers pay 12.4%.
Warren and Moreno have said they’re working on legislation that would make earnings above the current limit subject to the Social Security tax too. An estimate cited by the senators puts the extra revenue at around $3 trillion over 10 years. As of their latest public statements, the proposal hadn’t been introduced as a final bill.
About 94% of covered workers don’t earn above the current taxable maximum, according to estimates cited by FinanceBuzz. So the proposed change would mainly affect higher earners.
Social Security 2100 Act Could Change Benefits
Another proposal is the Social Security 2100 Act, which was introduced in 2026 by lawmakers including Rep. John Larson and Sen. Richard Blumenthal. The bill would change several parts of the program.
One key provision would raise the first factor in the Social Security benefit formula from 90% to 93%. The change would apply to benefits paid from 2027 through 2036. Because this percentage applies to only one part of the benefit formula, it doesn’t mean every monthly check would simply rise by 3%. Estimates describe the overall increase as roughly 2%.
The bill would also change the COLA calculation for 2027 through 2036. It proposes using whichever gives the higher increase between CPI-W and the CPI-E index for older Americans. Other parts of the bill deal with minimum benefits, caregiver credits and the five-month disability waiting period.
US Inflation Prediction: Will 2027 Social Security COLA Rise?
2027 COLA is still Not Official
The 2027 Social Security COLA hasn’t been finalized yet. SSA says the official announcement will come in October. Current estimates are around the mid-3% range, but forecasts can still change before the final calculation. AARP’s September estimate was 3.6%, while the Senior Citizens League was at 3.5%.
Other bills are also being discussed. Sen. Ruben Gallego’s You Earned It, You Keep It Act would remove federal income taxes on Social Security benefits and apply Social Security payroll taxes to earnings above $250,000. The Senior Citizens Tax Elimination Act from Sens. Tommy Tuberville and Tim Sheehy would also remove federal taxation of Social Security benefits
