2026 Social Security Tax Changes: What High-Income Earners Need To Know

After a twelvemonth of marketplace swings and dilatory creeping inflation, high-income earners volition spot a subtle but costly alteration successful 2026: a higher Social Security taxation bill.

“High earners volition wage somewhat much Social Security taxation successful 2026 simply due to the fact that the wage basal rises,” said Bryan Bibbo, CFP and spouse astatine JL Smith Holistic Wealth Management.

While the taxation complaint remains unchanged, the magnitude of income taxable to it, the wage base, rises from $176,100 to $184,500.

In applicable terms, a “high-income earner” for Social Security means idiosyncratic whose yearly net surpass the erstwhile threshold of $176,100, Bibbo said. These individuals wage Social Security taxation connected each dollar up to the caller headdress of $184,500, reaching the maximum full publication of $11,439. Any income beyond $184,500 is exempt from Social Security (OASDI) taxes, though it remains taxable to Medicare taxes.

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Social Security taxes are calculated arsenic 6.2% of wages for employees (with employers matching that amount) and 12.4% for self-employed workers, who wage some sides. In 2025, the maximum taxable magnitude was $176,100; successful 2026, it increases to $184,500 — astir a 4.8% jump.

Employees who gain astatine oregon supra that headdress volition contribute, successful total, $11,439 successful Social Security taxes adjacent year, portion self-employed individuals volition wage $22,878 total. “Social Security taxes are lone imposed up to a definite dollar amount,” said Grant Voller, a CFP astatine Savant Wealth Management. “Any wages earned successful excess of that magnitude volition not beryllium taxed astatine 6.2%.”

For employees, the $8,400 emergence successful the wage basal volition adhd up to astir $520 successful other taxation successful 2026, Bibbo pointed out. Employers lucifer that amount, for a combined summation of astir $1,041 per high-earning worker. Self-employed individuals wage some portions, truthful they’ll enarthrosis the afloat $1,041 summation connected their own.

The cost-of-living accommodation (COLA) for benefits volition besides emergence 2.8%, reflecting inflation. Though that doesn’t straight alteration the taxation rate, it’s 1 crushed the wage basal climbs annually, Bibbo explained.

Many precocious earners presume that paying much Social Security taxation volition yet mean receiving higher status benefits. Unfortunately, that’s not however it works.

Social Security benefits are calculated utilizing an individual’s 35 highest years of net but lone wages up to each year’s wage basal count, Bibbo said. “Each further dollar you wage successful Social Security taxes doesn’t adjacent a dollar of other benefits successful retirement,” Bibbo explained.