American workers pay into Social Security through tax withholdings from their paychecks. As the Consumer Financial Protection Bureau (CFPB) explained, the withholdings are listed as FICA (Federal Insurance Contributions Act) contributions.
For most wage earners, the withholding equals 6.2% of earned income. But the Social Security Administration caps the amount of income subject to Social Security withholding, so high earners only pay the tax on a portion of what they earn. The cap is called the taxable maximum or contribution and benefit base and it’s expected to increase in 2026. That’s good news for some high earners and bad news for others.
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The taxable maximum earnings is $176,100 in 2025, so your Social Security tax withholding can’t exceed $10,918.20 (6.2% of $176,100) this year, no matter how much you earn. But the taxable maximum will soon increase — find out by how much and what it means for high earners in 2026.
What the Numbers Look Like Now vs. What They Will Be
According to the SSA’s 2025 OASDI Trustees Report, the taxable maximum will increase to a projected $183,300 in 2026, based on wage index forecasts, for a maximum Social Security withholding of $11,364. People who earn over $176,100 in 2025 will pay more Social Security withholding in 2026 as a result of the increase, assuming their income stays the same or grows. How much more they’ll pay depends on their 2025 earnings and whether or how much, their earnings increase in 2026.
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This following table demonstrates how it works. Percentages are rounded to the nearest 0.1%.
| Earned Income | Social Security Tax in 2025 | Percentage of Income in 2025 | Social Security Tax in 2026 | Percentage of Income in 2026 |
| $100,000 | $6,200 | 6.2% | $6,200 | 6.2% |
| $150,000 | $9,300 | 6.2% | $9,300 | 6.2% |
| $176,100 (2025 cap) | $10,918.20 | 6.2% | $10,918.20 | 6.2% |
| $182,000 | $10,918.20 | 6% | $11,284 | 6.2% |
| $183,300 (2026 cap) | $10,918.20 | 6% | $11,364 | 6.2% |
| $190,000 | $10,918.20 | 5.7% | $11,364 | 6% |
| $250,000 | $10,918.20 | 4.4% | $11,364 | 4.5% |
Here’s what the SSA expects the taxable maximum to look like over the next five years.
| Year | Projected Taxable Maximum |
| 2026 | 183,300 |
| 2027 | 186,000 |
| 2028 | 190,200 |
| 2029 | 196,800 |
| 2030 | 203,700 |
Interestingly, the taxable maximum only increases if Social Security had a cost-of-living adjustment (COLA) the previous year. The maximum remained steady from 2009 to 2011 and in 2016, for example — years that followed years with no inflation. The maximum has fallen just once since 1975, going from $76,600 in 1999 to $76,200 in 2000 because of a decline in the wage index.
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This article originally appeared on GOBankingRates.com: Social Security Tax Cap Is Rising Again — What It Means for High Earners in 2026
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