Social Security Wage Base Rises to $192,300 for 2027 as SSA Confirms 3.6 Percent COLA

The Social Security Administration announced on October 14, 2026, that the taxable wage base for 2027 will be $192,300, an increase from $184,500 in 2026.

The wage base is the maximum amount of earnings subject to the 6.2 percent Social Security payroll tax. For 2027, the maximum Social Security tax for both employees and employers will be $11,922.60 each, up from $11,439 in 2026.

The announcement also confirmed the 3.6 percent cost-of-living adjustment for Social Security and Supplemental Security Income beneficiaries, effective January 2027. The COLA will add approximately $75 per month to average benefit checks.

The Medicare hospital insurance tax rate of 1.45 percent remains uncapped and applies to all earnings. High earners continue to pay an additional 0.9 percent Medicare tax on income above $200,000 for single filers and $250,000 for married couples filing jointly.

The SSA also updated retirement earnings limits for 2027. Beneficiaries younger than their full retirement age can earn up to $25,560 before benefits are reduced, up from $24,480 in 2026. For individuals reaching full retirement age in 2027, the earnings limit rises to $67,920, up from $65,160.

Prior projections based on the 2026 Social Security Trustees Report had estimated a slightly lower wage base of $190,200. The official figure confirmed by the SSA on October 14 superseded those earlier estimates.

Financial planners say the wage base increase is relevant for high earners and self-employed individuals who pay both the employee and employer portions of the payroll tax. Self-employed workers will pay a combined rate of 12.4 percent on earnings up to $192,300, plus the Medicare tax on all earnings.

The COLA and wage base adjustments take effect January 1, 2027.