
3. Social Security Tax Cap Increases
High-income earners, take note: The Social Security taxable wage base is expected to rise from $176,100 (2025) to $183,600 in 2026. That means workers could pay up to $11,383.20 in Social Security taxes next year — about $465 more than before.
Earnings above the cap aren’t taxed for Social Security, but Medicare taxes still apply (1.45% + an additional 0.9% for higher earners).
Financial planners recommend reviewing tax-efficient retirement accounts and Roth conversions to manage your taxable income more strategically.
4. The 2026 Earnings Test Threshold Increases
If you collect benefits while working, your income could temporarily reduce your payments. In 2026:
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Under FRA: The limit rises to $24,360 ($1 withheld for every $2 earned over this amount).
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Reaching FRA in 2026: The limit increases to $64,800 ($1 withheld for every $3 earned).
Once you reach full retirement age, the earnings cap disappears, and withheld benefits are reimbursed.
This is an excellent time to review your income strategy, especially if you have part-time work or a small business during retirement.