Wisconsin residents who rely on Social Security can expect three big themes in 2026: a modest cost-of-living adjustment (COLA), likely higher Medicare Part B costs, and continued state tax relief on Social Security benefits.
Plus, Wisconsin-specific programs—like SeniorCare and the Homestead Credit—remain valuable ways to stretch your monthly budget.
Projected Cola And Monthly Benefit Impact
The 2026 COLA is expected to be modest (generally cited in the low single digits).
If you currently receive the average retired worker benefit, a small percentage bump can still help offset everyday expenses like groceries and utilities.
Remember: COLA adjustments are applied to January payments, so your January 2026 check is the first to reflect the increase.
Medicare Part B Costs To Plan For
Most retirees have Medicare Part B premiums deducted from their Social Security each month.
For 2026, plan your budget for a slight increase in the standard premium and a higher annual deductible.
If you’re subject to IRMAA (income-related monthly adjustment amount), your premium could be higher than the standard rate, so check your income and filing status to anticipate your exact out-of-pocket costs.
Wisconsin State Taxes: Good News Continues
Wisconsin does not tax Social Security benefits. That means your state income tax return won’t reduce your federal Social Security amount.
Even if federal withholding, Medicare premiums, or other deductions change, your Wisconsin tax bill should not cut into your monthly Social Security checks.
Wisconsin-Only Savings You Should Use
SeniorCare (65+): Wisconsin’s prescription drug assistance program for seniors offers affordable coverage with an annual enrollment fee and income-based tiers. It’s designed to lower medication costs and works alongside Medicare.
Homestead Credit: If you’re a homeowner or renter with low-to-moderate income, this credit can reduce your property-tax or rent burden. Even if you don’t owe state income tax, you may still qualify for a refund through this credit.
Quick 2026 Planner
| Topic | What To Expect In 2026 | Why It Matters | Action Steps |
|---|---|---|---|
| COLA | Modest increase (low single digits) | Helps benefits keep pace with inflation | Re-check your January 2026 payment |
| Medicare Part B | Premium and deductible likely rise | Affects your net Social Security deposit | Review premium, IRMAA status, and plan |
| State Taxes | No WI tax on Social Security | Keeps more of your monthly benefit | File normally; no WI tax on SS benefits |
| SeniorCare | Low-cost drug assistance for 65+ | Cuts prescription costs | Enroll/renew; verify income tier |
| Homestead Credit | Relief for eligible owners/renters | Reduces housing cost burden | Gather documents and apply early |
How To Prepare Your 2026 Budget
- Estimate Conservatively: Treat COLA as a modest increase and don’t overspend until you see your updated January deposit.
- Review Medicare Choices: Compare drug plans, check IRMAA, and confirm your Part B and Part D costs for 2026.
- Claim Wisconsin Benefits: Apply or renew SeniorCare and explore the Homestead Credit to reduce out-of-pocket costs.
- Update Withholdings: If you withhold federal tax from Social Security, re-evaluate your rate so your net deposit stays predictable.
- Track Key Dates: Mark the COLA announcement window and your plan renewal deadlines for drug coverage and state programs.
For 2026, Wisconsin Social Security recipients should plan for a modest COLA, a slight uptick in Medicare Part B costs, and ongoing state tax relief on benefits.
By enrolling in SeniorCare, checking eligibility for the Homestead Credit, and reviewing Medicare choices early, you can protect your monthly cash flow and make the most of every dollar.
Build your budget with conservative assumptions now, then fine-tune once your January payment and final Medicare figures are confirmed.
FAQs
When Will My 2026 COLA Show Up In My Check?
The increase is reflected in January 2026 payments, so you’ll see the updated amount with your first deposit of the year.
Will Wisconsin Tax My Social Security In 2026?
No. Wisconsin does not tax Social Security benefits, so your state return will not reduce your monthly checks.
What Wisconsin Programs Help Seniors Save More In 2026?
SeniorCare can lower prescription costs for residents 65+, and the Homestead Credit can ease property-tax or rent burdens for eligible households.