27 October 2025 Social Security wage base to increase in 2026 - The Social Security wage base will increase from $176,100 to $184,500 in 2026.
- The maximum employee and employer Social Security tax contribution will increase from $10,918.20 to $11,439.00 in 2026.
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The Social Security wage base will increase from $176,100 to $184,500 in 2026, higher than the $183,600 low-cost and intermediate estimate published in the 2025 Annual Report of the Board of Trustees. (See EY Tax Alert 2025-1334; Social Security Administration Press Release.) The Medicare tax rate for 2026 remains at 1.45% of all covered earnings for employers and employees. The Additional Medicare Tax of 0.9% applies to wages of more than $200,000. While employers are required to withhold the additional 0.9% on covered wages over $200,000, there is no corresponding employer tax. Social Security, Medicare and disability insurance contributions Description | 2025 | 2026 | Increase | Social Security tax rate for employees | 6.2% | 6.2% | -0- | Social Security tax rate for employers | 6.2% | 6.2% | -0- | Social Security wage base | $176,100 | $184,500 | $ 8,400 | Maximum Social Security tax for employees and employers | $10,918.20 | $11,439.00 | $ 520.80 | Medicare tax rate for employers | 1.45% | 1.45% | -0- | Medicare tax rate for employees | 1.45% | 1.45% | -0- | Medicare tax rate for employees on wages above $200,000* | 2.35% (1.45% Medicare +0.9% Additional Medicare) | 2.35% (1.45% Medicare +0.9% Additional Medicare) | -0- | Medicare wage base | No limit | No limit | N/A |
* Employers must withhold the Additional Medicare Tax of 0.9% of wages over $200,000. There is no corresponding employer tax. | * * * * * * * * * * | | Contact Information | For additional information concerning this Alert, please contact: Workforce Tax Services - Employment Tax Advisory Services | | Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor |
Document ID: 2025-2158 |
