The Social Security wage base will increase from $176,100 to $184,500 in 2026. As a result, the maximum employee and employer Social Security tax contribution will rise from $10,918.20 to $11,439.00 next year. (See SSA Press Release)
The Medicare tax rate for 2026 remains at 1.45% of all covered earnings for employers and employees. The Additional Medicare Tax of 0.9% applies to wages of more than $200,000. While employers are required to withhold the additional 0.9% on covered wages over $200,000, there is no corresponding employer tax.
Social Security, Medicare and disability insurance contributions
2025 Compared to 2026
| Description | 2025 | 2026 | Increase |
| Social Security tax rate for employees | 6.20% | 6.20% | 0 |
| Social Security tax rate for employers | 6.20% | 6.20% | 0 |
| Social Security wage base | $176,100 | $184,500 | $ 8,400 |
| Maximum Social Security tax for employees and employers | $10,918.20 | $11,439.00 | $ 520.80 |
| Medicare tax rate for employers | 1.45% | 1.45% | 0 |
| Medicare tax rate for employees | 1.45% | 1.45% | 0 |
| Medicare tax rate for employees on wages above $200,000* | 2.35% (1.45% Medicare + 0.9% Additional Medicare) | 2.35% (1.45% Medicare + 0.9% Additional Medicare) | 0 |
| Medicare wage base | No limit | No limit | N/A |
* Employers must withhold the Additional Medicare Tax of 0.9% of wages over $200,000. There is no corresponding employer tax.
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