The Social Security wage base for 2026 is $184,500. Social Security tax is 6.2 percent on an employee's wages up to that amount, and the employer pays a matching 6.2 percent. Wages above $184,500 are not subject to Social Security tax in 2026, but Medicare tax has no limit.
What does the wage base mean?
Social Security is paid for by a payroll tax on earnings up to a yearly maximum. The IRS calls that maximum the social security wage base limit. Once an employee's wages for the calendar year pass it, no more Social Security tax is withheld from that employee for the rest of the year. The limit applies to each person's own earnings, not to the household.
Only the Social Security part has a cap. The IRS states that there is no wage base limit for Medicare tax, so every dollar of covered wages is subject to it.
What are the 2026 rates and limits?
| Item | 2026 figure | Who pays |
|---|---|---|
| Social Security tax | 6.2 percent up to $184,500 of wages | Employee and employer, each |
| Medicare tax | 1.45 percent on all wages | Employee and employer, each |
| Additional Medicare tax | 0.9 percent on wages above $200,000 | Employee only |
Multiplying 6.2 percent by $184,500 gives $11,439. That is the most Social Security tax one employee can have withheld on 2026 wages from a single employer, and the employer owes the same amount. This is our arithmetic from the IRS figures, not a number the IRS prints.
How does it work if you are self-employed?
Self-employed people pay both halves. The IRS gives the rates as 12.4 percent for Social Security and 2.9 percent for Medicare, applied to 92.35 percent of net earnings from self-employment. You generally owe the tax once your net earnings reach $400. You figure it on Schedule SE and can deduct one-half of the tax when you work out adjusted gross income.
The Schedule SE instructions for 2025 set the maximum self-employment income subject to Social Security tax at $176,100. Wages you already earned from an employer count toward the same limit, so a person with a job and a side business may reach it sooner. The Schedule SE form walks through that step.
For the Additional Medicare Tax, the IRS lists thresholds of $250,000 for married filing jointly, $125,000 for married filing separately and $200,000 for everyone else.
Example
This example uses invented numbers. Dana is an employee in Naperville who earns $250,000 in wages in 2026 from one employer. Social Security tax is withheld on the first $184,500, which is $11,439. Medicare tax of 1.45 percent applies to all $250,000, which is $3,625. Additional Medicare tax of 0.9 percent applies to the $50,000 above $200,000, which is $450. Dana's total withholding for these three taxes is $15,514, and the employer owes its own matching Social Security and Medicare amounts.
Common mistakes
- Treating the limit as an income cap on all taxes. It limits only the Social Security part. Income tax and Medicare tax continue above it.
- Using last year's number. The base is reset each year.
- Forgetting about a second job. Each employer withholds on its own payroll, so a person with two employers can have more withheld in total than the limit calls for. Ask your preparer how that is handled on your return.
- Assuming an S corporation owner can skip payroll tax. See our S corporation payroll guide.
What to do next
- Check your latest pay stub for year-to-date Social Security tax.
- If you run payroll, confirm your software uses the 2026 base and review the payroll tax basics and the Form 941 guide.
- If you work for yourself, read our self-employment tax guide before you plan estimated payments.
We help employers and self-employed people check payroll tax setup and returns. This page is general information for tax year 2026, not advice for your situation. More answers are in our tax questions.
Frequently asked questions
What is the Social Security wage base for 2026?
It is $184,500, according to IRS Publication 15. Social Security tax at 6.2 percent applies to each employee's wages up to that amount.
Does the wage base apply to Medicare tax?
No. Medicare tax of 1.45 percent each for employee and employer applies to all wages, and employees also pay 0.9 percent more on wages above $200,000.
Is the limit the same for self-employed people?
The tax rates are doubled to 12.4 percent and 2.9 percent because you pay both halves. For 2025 the IRS set the self-employment Social Security limit at $176,100, the same base as for wages that year.
Will the wage base change in 2027?
It adjusts every year. Check the Social Security Administration and Publication 15 for the new figure before you set up 2027 payroll.
Does the employer also stop paying at the limit?
Employer tax follows the same wage base, so the employer's 6.2 percent also applies only up to $184,500 of that employee's wages.
Official sources
- IRS: Topic no. 751, Social security and Medicare withholding rates
- IRS: Publication 15, Employer's Tax Guide
- IRS: Topic no. 554, Self-employment tax
- IRS: Instructions for Schedule SE (Form 1040)
This page is a plain-language summary. The official source controls if there is any difference.
General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.