Payroll taxes
What is Social Security wage base?
The Social Security wage base is the maximum annual earnings subject to the 6.2% Social Security portion of FICA. In 2026 it is $176,100. Once an employee's year-to-date wages exceed the base, neither the employer nor the employee owes further Social Security tax for that year, though the 1.45% Medicare portion continues with no cap.
The base is adjusted upward most years for wage growth. For high earners, it meaningfully caps the employer's Social Security cost, while the uncapped Medicare tax keeps applying to every dollar.
Example
On a $250,000 salary, employer Social Security tax stops at 6.2% of $176,100 ($10,918.20), but Medicare's 1.45% applies to the full $250,000 ($3,625).