The Social Security Administration announced on October 24 that the 2026 social security wage base will be $184,500, an increase of $8,400 from $176,100 in 2025. As in prior years, there is no limit to the wages subject to the Medicare tax; therefore, all covered wages are subject to the 1.45% tax. As in 2025, wages paid in excess of $200,000 in 2026 will be subject to an extra 0.9% Medicare tax that will only be withheld from employees’ wages.

The social security wage base for self-employed individuals in 2026 will also be $184,500. There is no limit on covered self-employment income subject to the Medicare tax. The self-employment tax rate will be 15.3% (combined social security tax rate of 12.4% and Medicare tax rate of 2.9%) up to the social security wage base. In 2026, the maximum social security tax for a self-employed individual will be $22,878.

Maximum social security tax. The maximum social security tax employees and employers will each pay in 2026 is $11,439, an increase of $520.80 from $10,918.20 in 2025.

Courtesy of PayrollOrg – Rayna Alexander, Esq.