2026 Social Security Wage Base Increases to $184,500
The 2026 social security wage base increases about 4.8% due to wage growth
The social security wage base is calculated based on the increase in national average wages from one year to the next. Taxpayers collecting social security benefits will see a 2.8% cost of living increase next year, however, the social security wage base will increase by almost 4.8%.
For 2025 the wage base is $176,100 and next year it will be $184,500.
For employed taxpayer’s whose wages exceed this amount, the maximum amount of social security taxed owed will be $11,439 which is about $521 higher than in 2025.
For self-employed farmers, these numbers would be doubled to $22,878 up about $1,042.
Progressives would like to see the social security tax apply to all wages and earned income above $400,000. However, this amount is not indexed, so eventually we would see all wages and earned income subject to the 12.4% FICA tax.
Assuming a 4.5% annual increase in wages would result in all wages and earnings being subject to FICA in 2044. If wages grew at 5%, it would happen in 2042.