Social Security Wage Base Rises to $184,500 in 2026

This change means that the maximum amount of earnings subject to the 6.2% Social Security tax has increased by $8,400. As a result, both employees and employers will each pay up to $11,439 in Social Security tax next year — about $520 more than in 2025.

Meanwhile, the Medicare tax remains the same: 1.45% on all wages with no cap, and an additional 0.9% surtax on earnings above $200,000 for high earners.

What This Means for Employers

For most businesses, this update won’t require any action beyond ensuring payroll systems are ready for January 1, 2026. But for companies with higher-earning employees, it’s worth taking note.

A higher wage base means a slightly larger employer tax liability and a few more dollars withheld from top employees’ paychecks. It also means your payroll software or provider must be updated to stop Social Security withholding at the new $184,500 limit.

It’s a small change, but missing it could cause headaches later — from mis-withholding to amended filings.

If you manage payroll in-house, double-check that your system will automatically update to the new limit. If you work with a provider like Brand’s Payroll, we’ll handle the update for you and make sure your 2026 payroll runs accurately from day one.

Why These Annual Adjustments Matter

Every year, the SSA updates the wage base to keep pace with national wage growth. While an $8,400 increase may not sound dramatic, it ensures that the Social Security system continues to receive adequate contributions to fund future benefits.

For employers, staying aware of these changes is part of maintaining compliance — and avoiding costly errors down the road. Accurate withholding protects not only your company but also your employees’ future benefits and trust.

Staying Ahead with Brand’s Payroll

Our team monitors these updates year-round, so you don’t have to. We automatically adjust your payroll settings to meet federal and state requirements, communicate changes that affect your business, and provide clear guidance every step of the way.

Whether it’s Social Security, Medicare, or any of the dozens of other payroll tax thresholds that shift annually, Brand’s Payroll ensures you’re always compliant — and always confident.

If you’d like help reviewing your payroll setup for 2026, contact us today. We’ll make sure your business is ready for the year ahead.