The Social Security Administration recently announced the 2026 Social Security wage base: $184,500. That's up from $176,100 in 2025. While this might sound like just another number in the tax code, it actually has real implications for your paycheck or self-employment income.
Whether you're working a traditional job, running your own business, or juggling both, understanding how this wage base affects your payroll taxes can help you plan ahead and avoid surprises when tax season rolls around.
Before we dive into the specifics of the 2026 wage base, let's break down what FICA taxes actually are.
The Federal Insurance Contributions Act (FICA) requires two types of payroll taxes on your earnings:
Combined, that's a 15.3% tax rate. If you're an employee, you and your employer split this cost evenly. If you're self-employed, you're responsible for the full 15.3%—though you can deduct the employer portion when filing your taxes.
Here's the key difference: while Medicare tax applies to all your income, Social Security tax only applies up to the wage base threshold. For 2026, that threshold is $184,500. Any income you earn above this amount won't be subject to Social Security tax.
Let's look at what you'll actually owe depending on your employment situation.
For 2026, here's what gets withheld from your paycheck:
That additional 0.9% Medicare tax kicks in once your income crosses $200,000 for single filers, $250,000 for married couples filing jointly, or $125,000 for married individuals filing separately.
Self-employment means you're covering both the employee and employer portions of FICA taxes.
For 2026, you'll owe:
The good news? You can deduct half of your self-employment tax when calculating your adjusted gross income (AGI). This deduction reduces your overall tax burden and can help you qualify for other tax breaks that phase out at higher income levels.
Payroll taxes can get tricky depending on your circumstances. Here are a few scenarios worth understanding:
If you have two W-2 jobs, both employers will withhold Social Security tax from your paychecks. You can't ask one employer to stop withholding once you hit the wage base—each employer must continue until your wages with that specific employer exceed $184,500. But don't worry about overpaying. When you file your tax return, you'll receive a credit for any excess Social Security tax withheld.
Have a day job and a side business? Your combined income determines your total FICA liability, but the calculations get more complex. Your W-2 employer will withhold based only on your wages with them, while you're responsible for self-employment tax on your business income. Depending on how much you earn from each source, you may need to make estimated tax payments throughout the year.
Knowing the 2026 wage base helps you anticipate your tax obligations and make smarter financial decisions. If you're self-employed, this information is especially valuable for calculating quarterly estimated tax payments. And if you're a high earner, understanding when the additional Medicare tax applies can help you budget accordingly.
Have questions about how the 2026 wage base affects your specific situation? We're here to help. Contact SD Mayer today, and we'll work together to ensure you're compliant with tax law while keeping more money in your pocket.