2026 Social Security Taxable Wage Base Projected to Increase

What’s the maximum you’ll pay per employee in Social Security tax next year? The taxable wage base estimate has been released.

According to the intermediate projection issued in a June 2025 report, the Social Security taxable wage base next year will be $183,600.

That’d be a $7,500 increase from the current number of $176,100.

At the 6.2% rate, the maximum Payroll would withhold from each employee’s wages for Social Security tax would reach $11,383.20. Of course, employers would pay that same amount for each employee.

The per-employee maximum amount in 2025 is $10,918.20.

When SSA releases the final Social Security taxable wage base number for 2026, likely in October, we’ll let you know.

For employers that want to look further ahead, here are the intermediate projections included in the report:

• $190,800 in 2027
• $198,900 in 2028
• $207,000 in 2029, and
• $215,400 in 2030.

Social Security Benefits

The 2025 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds included other updates.

Of note, the report provided insight on the solvency of the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) trust funds.

The total cost of the Social Security program began to exceed the total income in 2021, and that’s expected to continue in 2025 and in coming years, according to intermediate assumptions.

For now, the projected program income and the combined reserves of the OASI and DI trust funds can keep the Social Security program afloat. The ratio of reserves to annual cost is projected to decline, though, facing depletion in 2034.

As for the OASI Trust Fund specifically, its reserves will become depleted during 2033, the report states. Once the reserve is depleted, the trust fund would be able to pay only 77% of scheduled benefits.

However, legislative changes could be made between now and then that would change the trajectory of the OASI Trust Fund.

Employer-Provided Retirement Plans

With so much uncertainty surrounding Social Security retirement benefits, employer-provided plans remain essential. That said, most employees don’t max out the allowable contribution amounts set by the IRS.

So, consider whether it may be time to tweak your 401(k) plan or other retirement plan.

For example, you could re-evaluate your employer match program.

You could also take another look at the investment menus you offer employees. Earlier this month, the Department of Labor resumed its neutral stance on cryptocurrency, giving employers more leeway when it comes to investment options.