Social Security wage base rises to $192,300 in 2027
Higher earners will see more Social Security tax taken out next year, while retirees get a 3.6% raise.
Key numbers
- Wage base: $184,500 in 2026 → $192,300 in 2027
- Employee rate stays 6.2%, so the maximum tax rises to $11,922.60
- Benefits rise 3.6% starting January 2027
The Social Security Administration announced on October 14, 2026 that the maximum amount of wages subject to Social Security tax will rise to $192,300 in 2027, up $7,800 from $184,500 this year.
Workers pay 6.2% on wages up to that limit, and employers pay a matching 6.2%. With the higher cap, the most any employee can pay in 2027 is $11,922.60, compared with $11,439 in 2026.
Who will notice it on their paycheck
If you earn less than $184,500, nothing changes. Your Social Security deduction is still 6.2% of every paycheck.
If you earn more, Social Security tax will now keep coming out for longer before it stops. Someone earning $200,000 a year will pay 6.2% on an extra $7,800 of wages, which is about $484 more for the year. For a worker paid every two weeks, that extra tax usually shows up in the last few paychecks of the year, when the deduction used to stop.
Medicare tax is not affected. It stays at 1.45% on all wages, plus an extra 0.9% on wages above $200,000.
Retirees get a 3.6% increase
The same announcement set the 2027 cost-of-living adjustment at 3.6%. The average retirement benefit rises by about $75 a month, from $2,095 to $2,170. Retirees younger than full retirement age can earn $25,560 in 2027 before benefits are reduced, up from $24,480.
What about 2027 income tax brackets?
The IRS usually announces next year's tax brackets and standard deduction in October. As of early November, the 2027 figures had not been published. We will update our calculators as soon as they are.
Sources
- Journal of Accountancy: Social Security wage base and COLA announced for 2027
- Social Security Administration