Hailey
If you’re a higher earner or got a raise, the Social Security payroll tax change may trim your take-home pay.
The taxable wage base—the maximum salary subject to Social Security’s 6.2% employee tax—rose for 2025 and is set to rise again in 2026.
Below, see the exact limits, tax rates, and how much more you might pay.
The essentials (2025 → 2026)
- Taxable wage base: $176,100 for 2025; rising to $184,500 in 2026.
- Social Security (OASDI) rate: 6.2% employee + 6.2% employer (total 12.4%); 12.4% if self-employed.
- Maximum employee Social Security tax:
- 2025: $10,918.20 (6.2% of $176,100) — up $465 from 2024.
- 2026: $11,439.00 (6.2% of $184,500).
- Medicare (HI) tax: 1.45% on all wages (no cap) + 0.9% Additional Medicare Tax on earnings above $200,000 single / $250,000 married filing jointly.
What changes on your paycheck
- If your annual wages are at or above the wage base, your Social Security withholding lasts longer into the year and tops out at the higher maximum.
- If your wages are below the wage base, your Social Security withholding won’t change due to the cap itself (it remains 6.2% of your wages), but a raise that pushes you closer to the cap means more total OASDI dollars withheld.
Quick example
- Salary $200,000 in 2025: Social Security applies only to the first $176,100, so your employee OASDI withholding reaches the $10,918.20 maximum and then stops for the rest of the year. In 2026, the cap rises to $184,500, so withholding continues longer and tops out at $11,439.00, trimming take-home by about $521 versus 2025.
Simple – the caps and maximum Social Security tax
| Year | Taxable wage base | Employee OASDI rate | Max employee OASDI tax |
|---|---|---|---|
| 2024 | $168,600 | 6.2% | $10,453.20 |
| 2025 | $176,100 | 6.2% | $10,918.20 |
| 2026 | $184,500 | 6.2% | $11,439.00 |
(2025 and 2026 limits and max tax shown; 2024 for comparison.)
How to estimate your impact
- Project your 2025/2026 wages. If they’re below the cap, multiply wages by 6.2% to estimate OASDI withholding. If they’re above the cap, use the max for that year.
- Add Medicare. Apply 1.45% to all wages, and if your pay exceeds the Additional Medicare Tax threshold, add 0.9% on the excess.
- Compare years. Moving from 2025 to 2026, high earners see up to $521 more withheld for Social Security due to the higher cap.
Why the cap keeps rising
By law, the contribution and benefit base is adjusted using changes in the national average wage index.
When wages rise nationwide, the cap typically increases to keep program financing aligned with earnings growth.
Key takeaways for workers and employers
- Workers: Expect higher OASDI withholding if you hit the wage cap; budget for slightly lower take-home in early months of the year until you reach the max.
- Self-employed: You pay the full 12.4% OASDI on net earnings up to the cap (plus Medicare), though you may deduct part of it on your income tax return.
- Employers: Withhold 6.2% up to the wage base and match it; withhold Medicare on all wages and the 0.9% surtax when an employee’s wages exceed the threshold.
The Social Security payroll tax cap rose to $176,100 for 2025 and is slated to increase to $184,500 in 2026.
For high earners, that means more income is subject to the 6.2% OASDI tax, slightly reducing take-home pay until the higher maximum is reached.
Understanding the cap, the rates, and how Medicare taxes stack on top helps you plan paychecks, bonuses, and withholding with fewer surprises.
FAQs
Will everyone pay more because of the higher cap?
No. Only workers whose earnings reach or exceed the wage base are affected by the cap increase. Those below the cap still pay 6.2% on their wages, unchanged.
Does Medicare tax have a cap like Social Security?
No. Medicare tax (1.45%) applies to all wages, and high earners also owe an additional 0.9% on income above the threshold.
What is the maximum Social Security tax I can pay in 2025 and 2026?
For 2025, the maximum employee Social Security tax is $10,918.20; in 2026, it’s $11,439.00.