The Social Security Administration (SSA) has announced that the maximum earnings subject to Social Security tax will rise to $192,300 in 2027, up from $184,500 in 2026. The change was announced on 14 October 2026, in the same release as the 3.6% cost-of-living adjustment for 2027.

What changes in 2027

  • Wage base (taxable maximum): $192,300, up $7,800 from $184,500 in 2026
  • Maximum Social Security tax: $11,922.60 for the employee and the same for the employer — $483.60 more each than in 2026
  • Tax rate: unchanged at 6.2% for Social Security and 1.45% for Medicare on employees (7.65% together); the self-employed pay both halves, 12.4% for Social Security
  • Medicare tax: has no earnings cap at all — it applies to all wages, even above $192,300

Who is affected

Only workers who earn more than $184,500 a year will pay more Social Security tax in 2027. If you earn less than that, the higher cap changes nothing for you. Earnings above $192,300 are not subject to the 6.2% Social Security tax, though Medicare tax still applies.

Self-employed workers feel the change most: they pay both the employee and employer shares, so their maximum Social Security tax rises from $22,878 in 2026 to $23,845.20 in 2027 — an increase of $967.20.

Other 2027 Social Security numbers

  • Earnings test limit for people under full retirement age rises to $25,560 in 2027
  • One quarter of coverage (one Social Security credit) takes $1,970 of earnings in 2027, up from $1,890
  • The 3.6% COLA takes effect from January 2027, so benefit cheques rise from the new year

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