3. Social Security tax limit
In 2026, the Social Security taxable wage cap is projected to rise to $183,600, up from $176,100 in 2025. This increase means high earners could pay up to $11,383.20 in Social Security taxes, about $465 more than the year before.
Taxes stop once you hit the cap, but all wages remain subject to Medicare’s 1.45% tax, plus an extra 0.9% for higher-income earners.
4. Earnings test in 2026
If you work while collecting Social Security, part of your benefits may be withheld if your earnings exceed set limits. In 2026, the estimated limit for those under full retirement age is $24,360 ($1 withheld for every $2 earned above it).
For those reaching full retirement age in 2026, the limit rises to $64,800 ($1 withheld for every $3 earned above it). Once you reach full retirement age, there’s no earnings cap, and withheld benefits are restored.
I worked as a Musician all my life. I will turn 76 this year. My manager told me several years ago that I should file my SS retirement early because I just don’t make enough $. I was informed that my monthly payment Will be reduced by a small amount because of early retirement. My question is why after I finally reach my FRA, why shouldn’t I get my full money payment at that point. The $ I receive now are not enough to make my monthly payments. The cost of everything has gone up much more than the government says. In Ca. the creed has caused every bill that I have, and I do mean every one of them, almost 40-50%. I still work, have to as long as I can. I served in the Army, was drafted in 1970. I’ve some how paid all taxes. I was even audited once as well. The Govenment has failed us. The present people in charge are thugs and obviously are serving there needs no us. The two party’s even call or text sometimes 6 or 7 times a day asking for $. I want that to stop. Something needs to be done or there will be some sort of uprising. We have been lied to!!!
When the S.S. faces insolvency in 7 years then we seniors should automatically be enrolled in the program that the congress critters are in. After all, it was they that was using our Social Security as their own piggy bank.
I agree!
Not Congress or any other entity should be able to raid the Social Security Trust Fund. Kee your hands off!
FRA for someone born in 1958 last year was 66 and 8 months not 66and 6 months. You should correct that on your info.
Will there ever be a chance that our cola raise will not be almost all taken for medIicare? It helps us very little to get a cola raise, when most of it is taken back. It would be nice, when the cost of living gos up so much, to get to keep it for a change!!!!!
why are they doing this to us seniors. We have worked and paid taxes all our working years and now you want to lower our ss., how are we suppose to live?
How are govt employees stealing?
Funny thing is, I never knew about the 40 credits & didn’t know I was in college!! I worked hard & found out I was shy 1 credit. I started drawing at 63 & I hope I live long enough to see them take that 1 credit I was shy & stick it where the sun don’t shine. I hope I end up drawing more than I would’ve if I waited until I was old as dirt to draw my SS. Well, if SS runs out of money, I guess it won’t matter now will it?!!
That may depend on your health more than anything else. If you expect to live well into your 80s waiting until full retirement age will benefit you greatly and you are continuing to work so your social security benefit is increasing also. But if you have plenty of money in your other retirement accounts to live the way you want for the next 20 years of retirement then when you start drawing social security won’t matter as much.