Last updated: October 2026
Short answer: The Social Security wage base for 2027 is $192,300, up from $184,500 in 2026. Employees pay 6.2% Social Security tax only on wages up to that amount. The most an employee can pay in 2027 is therefore $11,922.60, up $483.60 from $11,439 in 2026. Self-employed people pay the full 12.4% on net earnings up to the base, for a maximum of $23,845.20. Medicare tax has no cap. The Social Security Administration published the new base in the Federal Register on October 26, 2026.
2027 Social Security and Medicare tax figures
| Item | 2026 | 2027 |
|---|---|---|
| Social Security wage base | $184,500 | $192,300 |
| Employee Social Security rate | 6.2% | 6.2% |
| Maximum employee Social Security tax | $11,439.00 | $11,922.60 |
| Self-employed Social Security rate | 12.4% | 12.4% |
| Maximum self-employed Social Security tax | $22,878.00 | $23,845.20 |
| Medicare rate (employee, no cap) | 1.45% | 1.45% |
| Additional Medicare tax withholding starts | $200,000 in wages | $200,000 in wages |
| Earnings for one quarter of coverage | $1,890 | $1,970 |
The wage base and quarter-of-coverage amounts come from the SSA’s 2027 determinations notice. The tax rates come from IRS Topic 751, IRS Topic 560 and the IRS self-employment tax page. The base rose because the national average wage index for 2025 came in at $72,800.33. The SSA’s summary is on its 2027 COLA announcement.
How the cap works on your paycheck
Your employer withholds 6.2% for Social Security from every paycheck until your year-to-date wages reach $192,300. After that, Social Security withholding stops for the rest of the calendar year, which makes your take-home pay go up. Medicare withholding of 1.45% keeps going on every dollar. On wages above $200,000, your employer also has to withhold the 0.9% Additional Medicare tax.
| 2027 wages | Social Security (6.2%) | Medicare (1.45%) | Additional Medicare (0.9%) | Total employee FICA |
|---|---|---|---|---|
| $100,000 | $6,200.00 | $1,450.00 | $0 | $7,650.00 |
| $192,300 | $11,922.60 | $2,788.35 | $0 | $14,710.95 |
| $250,000 | $11,922.60 | $3,625.00 | $450.00 | $15,997.60 |
Example: a $250,000 salary paid evenly over 24 pay periods works out to about $10,417 per paycheck. Year-to-date wages pass $192,300 in the 19th paycheck. Social Security withholding then stops, and each of the remaining paychecks rises by about $646. For a refresher on everything else that comes out of a check, see how salary tax withholding works.
The Additional Medicare tax depends on filing status when you file your return: $250,000 for married filing jointly and $200,000 for most others. Withholding still starts at $200,000 per employer, so a married couple can end up over- or under-withheld.
Two jobs: getting back excess Social Security tax
Each employer withholds as if it were your only employer. If you earn $120,000 at one job and $100,000 at another in 2027, the two together withhold $13,640 of Social Security tax. That is $1,717.40 more than the $11,922.60 maximum. In general you can claim that excess as a credit on your tax return. If a single employer withholds too much, you have to ask that employer for the refund instead. IRS Topic 608 explains the rules.
Self-employed: 12.4% up to the base
Self-employment tax is figured on 92.35% of net profit. That means the Social Security part reaches its cap at about $208,230 of net self-employment profit, because $208,230 × 92.35% ≈ $192,300. Any W-2 wages you also earn count toward the same $192,300 base first. So a person with a $150,000 salary and a side business pays the 12.4% Social Security portion on only $42,300 of self-employment earnings. Medicare’s 2.9% applies to all net self-employment earnings.
The higher base raises the maximum self-employed Social Security tax by $967.20. If you make quarterly payments, update your 2027 numbers with the quarterly estimated tax calculator. Our guide to how much to set aside for 1099 taxes covers the rest of the budget. S-corp owners pay FICA only on salary, which is why reasonable salary rules matter.
Does a higher wage base raise your benefit?
Social Security counts earnings only up to the wage base each year when it figures your benefit. A higher cap therefore means high earners pay more tax and also get more credited earnings, though the benefit formula replaces a much smaller share of earnings at higher incomes. You earn one credit for each $1,970 of earnings in 2027, up to four credits a year. If you already get benefits, the 3.6% cost-of-living increase is a separate change; see the 2027 Social Security COLA calculator.
Frequently asked questions
What is the Social Security wage base for 2027?
$192,300, up from $184,500 in 2026. Wages above that amount aren’t subject to the 6.2% Social Security tax.
What is the maximum Social Security tax in 2027?
$11,922.60 for an employee ($192,300 × 6.2%). Your employer pays a matching amount. A self-employed person pays up to $23,845.20.
Is there a wage cap for Medicare tax?
No. The 1.45% Medicare tax applies to all wages. An extra 0.9% applies above $200,000 for single filers and $250,000 for joint filers.
Why did my paycheck go up late in the year?
Your year-to-date wages probably passed the Social Security wage base. At that point Social Security withholding stops until January, when it starts again.
I had two employers and paid too much Social Security tax. What do I do?
If the total withheld by two or more employers is more than the annual maximum, you can generally claim the excess as a credit when you file. If one employer over-withheld, ask that employer to correct it.
Bottom line: For 2027, plan on 6.2% Social Security tax on wages up to $192,300, a maximum of $11,922.60, and Medicare tax on all wages. Self-employed people should budget up to $23,845.20 for the Social Security portion, minus any credit for wages they earned in a W-2 job.