Social Security wage base
The Social Security wage base is the maximum amount of an employee’s wages subject to Social Security tax in a calendar year: $184,500 (2026).
The Social Security wage base changes annually: $184,500 (2026), up from $176,100 (2025). Once an employee’s year-to-date Social Security wages with you reach it, Social Security tax stops for the rest of the calendar year. That covers both the 6.2% employee withholding and your matching 6.2% share. Medicare tax applies at 1.45% to every dollar of Medicare wages with no wage limit, so Medicare withholding keeps going. Wages above the wage base still count as regular wages for federal income tax, Medicare, and most other purposes.
Why is the wage base tracked per employer?
The wage base is a year-to-date figure tracked per employer. It has to carry forward accurately when you switch payroll systems partway through the year, not apply fresh from the go-live date. Never assume last year’s wage base still applies: confirm the current amount with the Social Security Administration each year.
| SITUATION | WHAT HAPPENS |
|---|---|
| Two unrelated employers in one year | Each withholds Social Security tax up to the full wage base |
| Combined withholding above the limit | Credited back on the employee’s own tax return, not through either employer’s payroll |
| Midyear conversion that omits prior wages | The new system over-withholds, and that has to be corrected |
| January 1 conversion | No current-year wage history to migrate |
- Federal Insurance Contributions Act, 26 U.S.C. §3121, Definitions
- IRS Topic no. 751, Social Security and Medicare withholding rates
General information, not legal or tax advice. Apply current federal and state rules with qualified guidance.