2027 Social Security Wage Base

The Social Security Administration has announced the annual cost-of-living adjustments to the maximum amount of earnings subject to Social Security tax.

Taxable Wage Base

Tax Rates

Things to Know

• Cafeteria plan salary reductions are not subject to Social Security tax. Pre-tax 401(k) contributions are subject to Social Security tax.

• The 7.65% tax rate is comprised of the rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.2% on earnings up to the taxable wage base (see chart above). The Medicare portion (HI) is 1.45%.

• High Income Individuals are defined as individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly). High Income Individuals pay an additional 0.9% in Medicare taxes (on income that exceeds the $200,000/$250,000 threshold).