Wage Base
Tax Glossary Term
Definition
The Social Security wage base is the maximum amount of earnings subject to the Social Security (OASDI) tax each year. For 2026, the wage base is $184,500. Once your cumulative wages for the year exceed this amount, no additional Social Security tax (6.2% employee / 6.2% employer) is withheld. Medicare tax, by contrast, has no wage base and applies to all earnings. The wage base is adjusted annually by the Social Security Administration based on changes in the national average wage index. It has risen steadily over the decades: it was $106,800 in 2011, $132,900 in 2019, $168,600 in 2024, and $184,500 in 2026. For most workers earning below the wage base, the cap is irrelevant — they pay Social Security tax on every dollar of wages. But for higher earners, passing the wage base creates a noticeable jump in take-home pay. If you earn $200,000 and are paid biweekly, you will stop paying the 6.2% Social Security tax partway through the year, and your net paycheck will increase by that amount for the remaining pay periods. If you work multiple jobs, each employer withholds Social Security tax independently up to the wage base, so you could overpay. You can claim the excess as a credit on your tax return. Self-employed individuals apply the wage base to 92.35% of their net self-employment earnings, paying 12.4% (both halves) up to that limit.
Example
Annual wages: $200,000
SS tax on first $184,500: $184,500 x 6.2% = $11,439
SS tax on remaining $15,500: $0 (above wage base)
Total SS tax: $11,439 (capped)
Medicare continues: $200,000 x 1.5% = $2,900 (no cap)