1. How SSDI Benefits Are Determined

• SSDI benefits are calculated based on your Primary Insurance Amount (PIA), which is derived from your average indexed monthly earnings (AIME) over your 35 highest-earning years.
• The Social Security Administration (SSA) sets an annual cap on SSDI benefits. Even if your calculated PIA is higher, it cannot exceed this limit.

2. Maximum SSDI Benefit for 2025

• For 2025, the maximum SSDI benefit is $4,018 per month.
• To reach this maximum, you must have worked for at least 35 years at or near the maximum taxable earnings under Social Security each year.
• The vast majority of recipients receive significantly less. In Tennessee, the average monthly benefit is roughly $1,500, reflecting more typical earnings histories.

3. Who Qualifies for the Maximum

You may qualify for the maximum benefit amount if you:

• Consistently earned at or above the annual maximum taxable earnings cap for at least 35 years.
• Paid Social Security payroll taxes on those earnings without significant gaps.
• Do not have offsetting income, such as certain pensions or workers’ compensation, that can reduce your SSDI payment.

4. Additional Benefits for Dependents

• SSDI may include auxiliary benefits for eligible family members like spouses or children.
• These benefits can increase household income by up to 50% of your PIA, although they are also subject to SSA rules and payment caps.

5. Annual Cost-of-Living Adjustments (COLA)

• SSDI payments receive annual COLA increases to keep up with inflation.
• In 2025, the COLA was about 2.5%, which increased both the maximum and average SSDI payments.
• Future COLA increases mean the maximum benefit may rise beyond $4,018 in subsequent years.

6. Tennessee vs. National Benefits

• SSDI calculations are standardized at the federal level, not by state.
• Tennessee follows the same rules and maximum payment amounts as every other state, although cost-of-living and state-specific factors can affect how far the money goes.