Social Security Wage Base for 2027 Rises to $192,300: What the Taxable Maximum Means

The maximum amount of earnings subject to Social Security tax will rise to $192,300 in 2027, up from $184,500 in 2026, according to the Social Security Administration. The agency announced the new figure in October along with a 3.6% cost-of-living adjustment (COLA) for benefits.

The limit, officially called the contribution and benefit base and often referred to as the taxable maximum or wage base, caps both the earnings taxed for Social Security and the earnings used to calculate a worker’s future benefits.

This article is general information, not tax or financial advice. Check with a tax professional about your own situation.

What is the SSA maximum taxable earnings for 2027?

It is $192,300, the SSA says. The Social Security part of the payroll tax, known as OASDI (Old-Age, Survivors, and Disability Insurance), applies only to wages and self-employment income up to that amount.

• Employees and employers each pay 6.2% on wages up to $192,300.
• Self-employed workers pay 12.4% on self-employment income up to the same limit.

A worker earning $192,300 or more would pay $11,922.60 in Social Security tax in 2027, and the employer would pay the same amount, according to the SSA. The Journal of Accountancy noted that is up from $11,439 each in 2026.

How much is the increase?

The base rises by $7,800. The limit changes every year with the national average wage index, the SSA explains. In its Federal Register notice, the agency set the 2025 national average wage index at $72,800.33, which drives the 2027 figures.

Does the cap apply to Medicare tax?

No. The Medicare portion of the payroll tax, 1.45% each for employees and employers, has no wage limit, the SSA fact sheet shows. The combined Social Security and Medicare rate stays at 7.65% for employees and 15.3% for the self-employed.

People with earned income above $200,000 ($250,000 for married couples filing jointly, $125,000 for married filing separately) also continue to pay an additional 0.9% Medicare tax, the Journal of Accountancy reported.

2027 COLA: 3.6% benefit increase

The SSA announced on Oct. 14 that Social Security and Supplemental Security Income (SSI) benefits will rise 3.6% for 2027. The COLA is tied by law to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of 2025 to the third quarter of 2026.

• Nearly 72 million Social Security beneficiaries will see the increase starting in January 2027.
• About 7.3 million SSI recipients will get higher payments starting Dec. 31, 2026.
• The average retirement benefit will rise by about $75 a month, from $2,095 to $2,170, according to the Journal of Accountancy.

Other 2027 Social Security numbers

The SSA fact sheet lists several other figures that change in 2027:

Under the retirement earnings test, beneficiaries younger than full retirement age have $1 withheld for every $2 earned above the limit. In the year they reach full retirement age, $1 is withheld for every $3 above the higher limit, counting only earnings before the month they reach that age. Starting the month a person reaches full retirement age, there is no limit.

Who is affected by the higher wage base?

Only workers whose earnings exceed $184,500 will pay more Social Security tax because of the change, since earnings below the old cap were already fully taxed. For those higher earners, more of their pay will count toward Social Security, and up to $192,300 of 2027 earnings can be used in figuring their benefits, per the SSA.

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