The Social Security Administration has announced the annual cost-of-living adjustments to the maximum amount of earnings subject to Social Security tax.
| Maximum Taxable Earnings | 2026 | 2027 |
| Employee | $184,500 | $192,300 |
| Medicare | No Limit (All Wages Taxed) | |
| Who Pays | Social Security | Medicare | Combined* |
| Employee | 6.2% | 1.45% | 7.65% |
| Employer | 6.2% | 1.45% | 7.65% |
| Self-Emplyed | 15.30% | 15.30% | |
| High Income Individuals (Definition Below) |
N/A | 0.9% | |
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).