Social Security 2027 change could cost you $967: What to know about ‘maximum taxable earnings’ update

The Social Security Administration (SSA) recently announced its highly anticipated 2027 annual cost-of-living adjustment (COLA), which will be 3.6%—the highest figure in four years. But buried in that announcement is also a hidden cost for high earners. The SSA is increasing the ceiling on “maximum taxable earnings” subject to Social Security tax from the current $184,500 in 2026 to $192,300 in 2027. That means more income is now exposed to payroll taxes, which could fund the a...