Social Security Tax Limit 2027: $192,300 Wage Base and When Withholding Stops

The Social Security Administration announced on October 14, 2026 that the social security tax limit for 2027 is $192,300, up from $184,500 in 2026. This cap, also called the social security wage base, is the most in annual earnings that is subject to the 6.2% Social Security payroll tax. It only affects people who earn above the old limit, and it changes when your Social Security withholding stops during the year. The tax rates themselves are not changing.

This guide covers the new numbers, who pays more, the paycheck where withholding stops at several salary levels, and what stays the same. If you have ever wondered why your pay jumps late in the year, our explainer on why your paycheck rises after you pass the Social Security wage base covers the mechanics in depth.

The 2027 numbers at a glance

According to the SSA 2027 fact sheet, the taxable maximum for Social Security (the OASDI portion only) is $192,300 for 2027. The employee tax rate of 7.65% and the self-employed rate of 15.30% are unchanged. These rates exclude the 0.9% Additional Medicare Tax, covered below.

Item	2026	2027
Social Security wage base (taxable maximum)	$184,500	$192,300
Maximum employee Social Security tax (6.2%)	$11,439.00	$11,922.60
Increase in maximum employee tax	Not applicable	$483.60
Employee Social Security rate	6.2%	6.2%
Medicare rate (no earnings limit)	1.45%	1.45%
Total employee rate (Social Security plus Medicare)	7.65%	7.65%

Your employer pays a matching 6.2%, so its maximum Social Security tax per employee is also $11,922.60 for 2027. For more on that side of payroll, see our guide to the employer half of payroll tax.

Who is affected by the new Social Security tax limit

Most workers earn less than the limit, and for them nothing changes. Social Security tax is 6.2% of every dollar of wages, all year, and the higher cap does not touch that.

The change reaches only people whose Social Security wages are above $184,500. Those earners now pay the 6.2% on a larger slice of income. The maximum employee tax rises by $483.60, and anyone earning at or above $192,300 pays that full increase. Earners between the old and new limits pay part of it: 6.2% of whatever they earn above $184,500.

When do you stop paying Social Security tax in 2027?

If you are asking when you stop paying Social Security tax, the answer is the paycheck in which your year-to-date Social Security wages reach $192,300. After that, your employer stops withholding the 6.2% for the rest of the calendar year. The table below shows where that happens for a biweekly schedule of 26 paychecks. It assumes salary is paid evenly, Social Security wages equal salary, and there is no bonus. These are illustrations of the tax only, not a calculation of your take-home pay.

Annual salary	Social Security tax per check (6.2%)	2027 limit reached	Checks with no Social Security tax	Extra tax vs. 2026
$150,000	$357.69	Never	None	$0.00
$190,000	$453.08	Never (it would have been reached in 2026)	None	$341.00
$200,000	$476.92	Check 25 (partial)	1	$483.60
$250,000	$596.15	Check 20 (partial)	6	$483.60
$300,000	$715.38	Check 17 (partial)	9 (10 in 2026)	$483.60
$400,000	$953.85	Check 13 (partial)	13	$483.60

The crossing paycheck is partial because only the dollars up to the limit are taxed on that check. For employers that pay twice a month, the timing looks like this:

Annual salary	Social Security tax per check (24 checks)	2027 limit reached	Checks with no Social Security tax
$250,000	$645.83	Check 19 (partial)	5
$300,000	$775.00	Check 16 (partial)	8

Your actual crossing point can differ from these tables. Pre-tax cafeteria plan (Section 125) deductions such as health premiums lower your Social Security wages, while traditional 401(k) deferrals do not. A large bonus early in the year can also pull the crossing point earlier, because it uses up the wage base faster. To see how each deduction type is treated, read our guide to pre-tax vs. post-tax deductions.

The January effect: net pay dips when the 6.2% returns

The cap resets every January 1. Higher earners who went several paychecks without Social Security tax at the end of 2026 will see the 6.2% come back on their first 2027 check, so net pay drops even if gross salary is unchanged. Nothing is wrong with the payroll. It is the same pattern as every year, and it is a common reason a raise can feel smaller than expected. We break down that effect in why a raise can make your paycheck feel smaller.

Two jobs or a mid-year job change

Every employer starts the wage base count fresh, so each new employer withholds Social Security tax from your first dollar there. Your earlier employer’s wages do not carry over to the new payroll.

Per IRS Topic 608, if you have more than one employer, the total Social Security tax withheld can exceed the annual maximum. You claim the excess as a credit on your Form 1040. If a single employer over-withheld, you generally cannot claim it as a credit. The employer should correct it, and if it does not, you file Form 843. Spouses who file jointly calculate the excess separately. If you and your spouse both work, our guide to W-4 withholding with two jobs or a working spouse explains how to avoid surprises.

What does not change

• The rates. The employee rate stays 7.65% (6.2% Social Security plus 1.45% Medicare), and the self-employed rate stays 15.30%.
• Regular Medicare tax. The 1.45% Medicare (HI) tax applies to all earnings with no limit, so it never stops during the year.
• Additional Medicare Tax thresholds. Under IRS Topic 560, the 0.9% Additional Medicare Tax applies to wages above $200,000 for single and all other filers, $250,000 for married filing jointly, and $125,000 for married filing separately.
• How employers withhold the extra 0.9%. Employers begin withholding it in the pay period wages pass $200,000 in a calendar year, regardless of your filing status. There is no employer match.

So a high earner can stop paying Social Security tax mid-year while still paying Medicare tax, and possibly the Additional Medicare Tax, on every paycheck.

If you are self-employed

Self-employed workers pay both halves. The Social Security portion is 12.4% of net self-employment earnings up to $192,300 in 2027, and the Medicare portion applies to all net earnings. The combined rate stays 15.30%. If you are new to this, our piece on the 15.3% self-employment tax people forget walks through it.

Working while collecting benefits: the 2027 earnings test

The same SSA announcement also sets new limits for beneficiaries who work before reaching full retirement age. The retirement earnings test exempt amounts for 2027 are:

• Under full retirement age: $25,560 per year ($2,130 per month), up from $24,480 in 2026.
• In the year you reach full retirement age: $67,920 per year ($5,660 per month), up from $65,160 in 2026.

The quarter of coverage amount also rises, to $1,970 in 2027 from $1,890 in 2026, and benefits get a 3.6% cost-of-living adjustment for 2027.

Common questions