The April 2023 COLA increased most Social Security checks by 8.7 percent

On April 23, 2023, Social Security sent out the first payments reflecting that year's Cost of Living Adjustment, or COLA. For most people receiving benefits, this meant their monthly check went up by 8.7 percent — the largest increase in four decades. If you were receiving $1,500 a month before April, your new payment was roughly $1,631.

The COLA is not a one-time bonus. It becomes your new baseline. Every payment from April 2023 onward reflected that higher amount, unless Congress changes your benefits or you become ineligible for some other reason.

Not everyone saw the same dollar increase. Someone receiving $500 a month got a smaller raise in dollars than someone receiving $3,000 a month, even though both got the 8.7 percent bump. The percentage stays the same; the dollar amount depends on what you were receiving before the adjustment.

Key Takeaways

  • The April 2023 COLA raised most Social Security payments by 8.7 percent, and that higher amount became your new regular monthly payment going forward.
  • The COLA is calculated each year based on inflation measured by the Consumer Price Index, and Congress does not vote on it — it happens automatically.
  • You do not need to do anything to receive the COLA increase; Social Security applies it to your account without a separate request.
  • The April 23 payment date applied to people born on the 23rd of any month; other beneficiaries received their COLA payments on different dates depending on their birth date.

How the COLA is calculated and why it changed in 2023

Each year, Social Security calculates a new COLA by comparing the Consumer Price Index from the third quarter of one year to the third quarter of the previous year. The Consumer Price Index measures what everyday goods and services cost — groceries, gas, rent, medical care. When prices rise faster than they did the year before, the COLA goes up.

In 2023, inflation had been high throughout 2022, so the third-quarter comparison showed a large jump in prices compared to the year before. That is why the 8.7 percent COLA was so much larger than the 1.3 percent COLA in 2022 or the 5.9 percent COLA in 2021. The adjustment reflects what actually happened to the cost of living, not a decision made by Social Security or Congress.

The COLA applies to Social Security retirement benefits, survivor benefits, and disability benefits. It does not explore to Supplemental Security Income (SSI), which is a separate program with its own rules.

When you received the April 2023 COLA payment

Social Security does not send all payments on the same day. Instead, the agency spreads payments across three Wednesdays each month based on when you were born. People born on the 1st through the 10th of any month receive their payment on the second Wednesday. People born on the 11th through the 20th receive theirs on the third Wednesday. People born on the 21st through the 31st receive theirs on the fourth Wednesday.

The April 23 date refers to the fourth Wednesday of April 2023, when people born on the 21st through the 31st received their first payment with the COLA included. If you were born on the 15th, you received your COLA payment on April 19. If you were born on the 5th, you received it on April 12.

If you receive benefits through a bank account or debit card, the money arrived on that date. If you receive a paper check, it was mailed a few days earlier so it would arrive around that date, though mail delivery varies.

Why the COLA matters for your budget and taxes

An 8.7 percent increase sounds large, but it is important to understand what it does and does not do. The COLA raises your payment to match inflation — the rise in prices you have already experienced. It does not give you extra purchasing power beyond what you had before prices went up. If groceries cost 8.7 percent more in April 2023 than they did a year earlier, the COLA payment roughly keeps pace with that change.

The higher payment may affect your taxes. If your combined income — including Social Security, wages, interest, and other sources — crosses certain thresholds, a portion of your Social Security becomes taxable. The COLA increase could push you over that threshold. You may want to review your tax withholding or estimated tax payments if your benefits increased significantly.

The higher payment also affects means-tested programs. If you receive Medicaid, food information, or housing support, the increase in your Social Security might change what you are may be able to access for. Contact your local benefits office if you are unsure how the higher payment affects other programs you use.

What happens to the COLA each year

The COLA is recalculated every year using the same method. In October, Social Security announces what the next year's COLA will be. That announcement tells you what percentage increase to expect in January, when the new COLA takes effect. The January payment date depends on your birth date, just like the April payment date did.

Some years the COLA is small. In 2017, it was 0.3 percent. In 2016, there was no COLA at all — the adjustment was 0 percent because prices had not risen enough to trigger an increase. Other years, like 2023, the COLA is large. The amount always reflects actual inflation, not a fixed number or a political decision.

If you did not receive the April 2023 COLA increase

Most Social Security beneficiaries received the 8.7 percent increase, but some did not. If you were newly approved for benefits in 2023, your first payment may not have included the full COLA, because Social Security calculates your initial benefit amount before explore the adjustment. If you were receiving Supplemental Security Income instead of regular Social Security, you did not receive this COLA, though SSI has its own separate annual adjustment.

If you believed you should have received the increase and did not see it in your April payment, contact Social Security directly. You can call 1-800-772-1213, visit your local Social Security office, or create an account at ssa.gov to view your payment history and contact the agency with questions.

Frequently Asked Questions

Does the COLA increase happen every year?

The COLA is calculated every year, but the amount varies. Some years it is large, some years it is small, and in rare cases it has been zero. The increase is based on inflation measured by the Consumer Price Index, not on a fixed schedule or percentage.

Will my Medicare premiums go up because of the COLA?

Your Medicare Part B and Part D premiums may increase, but federal law limits how much they can rise. In many years, the increase in your Social Security COLA is larger than the increase in your Medicare premiums, so your net payment goes up. Social Security will tell you the new premium amounts when you receive your COLA notice.

Can I refuse the COLA increase?

No. The COLA is applied automatically to your account. You cannot opt out or delay it. If you have concerns about how the increase affects your taxes or other benefits, you can contact Social Security or a tax professional to discuss your options.

What if I was not receiving Social Security in April 2023?

If you began receiving benefits after April 2023, your initial payment amount was calculated using the benefit formula that was in effect when you started. You will receive the next COLA adjustment in January 2024 and every January thereafter.