Social Security wage base
The Social Security wage base is the most an employee’s wages can be taxed for Social Security in one year. For 2026 it is $184,500, and an employer stops withholding and paying Social Security tax once an employee’s wages reach it. The Social Security Administration (SSA) also calls it the taxable maximum.
Wage base amounts and maximum tax
Figures are as of October 2026.
Item
Amount
Wage base for 2026
$184,500 (IRS)
Wage base for 2027
$192,300 (SSA)
Social Security tax rate
6.2% for the employee and 6.2% for the employer
Maximum Social Security tax at the base, each side
$11,439.00 for 2026 ($184,500 x 6.2%); $11,922.60 for 2027 ($192,300 x 6.2%)
What happens when wages reach the base
The employer withholds the employee’s share and pays the employer’s share of Social Security tax until the employee’s taxable wages and tips for the year reach the base. The instructions for Form 941 say to stop Social Security tax on line 5a at $184,500 for 2026. The base applies to both shares within a calendar year.
Medicare tax has no wage base, so it continues all year along with income tax withholding.
What counts toward the base
Severance pay, reported tips, and traditional 401(k) deferrals all count toward the base. When the requirements are met, wages paid by a predecessor employer also count toward the successor employer’s base.
How the base is set
A formula set by law, which uses the national average wage index, determines the base, and SSA calls it the contribution and benefit base. For 2027, SSA’s determination multiplies the 1994 base of $60,600 by the ratio of the 2025 to the 1992 index and rounds to the nearest $300.
Hypothetical example
In 2026, an employee is paid $16,000 per month, or $192,000 for the year, by one employer.
* Months 1 to 11: $16,000 x 6.2% = $992.00 of Social Security tax per month, and year-to-date wages reach $176,000.
* Month 12: only $184,500 minus $176,000 = $8,500 is taxable, so $8,500 x 6.2% = $527.00.
* Year total: 11 x $992.00 + $527.00 = $11,439.00, which equals $184,500 x 6.2%.
The employer pays the same $11,439.00. Medicare tax is $192,000 x 1.45% = $2,784.00 for each side, with no cap.
Frequently asked questions
Does the wage base apply to Medicare tax?
Medicare tax has no wage base limit, according to IRS Topic 751.
What if an employee has two employers in one year?
Each employer generally applies the wage base separately, so total Social Security withholding across both can exceed the $11,439.00 maximum for one employer in 2026. The employee may be able to claim the excess as a credit on the return, while over-withholding by a single employer is that employer’s to adjust.
Related terms: Social Security tax, FICA, OASDI, Medicare tax.
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