#3 Taxable Wage Base Increases to $192,300
The taxable maximum—the maximum amount of annual earnings subject to the Social Security payroll tax—will rise to $192,300 in 2027, up from $184,500 in 2026. Higher-income workers will therefore pay Social Security taxes on a larger portion of their salary next year.
Workers contribute 6.2% of their earnings up to this cap (with employers matching that 6.2%), meaning the maximum employee contribution in 2027 is $11,922.60. Earnings above $192,300 are exempt from Social Security tax, though all wages remain subject to the 1.45% Medicare tax.
Meanwhile, the maximum monthly Social Security benefit for a worker retiring at full retirement age will rise from $4,152 in 2026 to $4,188 in 2027. Higher earners affected by the increased wage cap may want to review their 2027 tax withholding and retirement contribution levels.
