OASDI wage base (Social Security wage base)
Also known as: Social Security wage base, Contribution and benefit base, FICA wage base
The maximum amount of wages subject to the 6.2% Social Security (OASDI) payroll tax each calendar year. $184,500 in 2026 (up from $176,100 in 2025), adjusted annually by the Social Security Administration based on national average wage growth. The Medicare portion of FICA has no wage base.
Last updated:
The Social Security wage base — formally called the Contribution and Benefit Base by the Social Security Administration — is the annual ceiling on wages subject to the 6.2% Social Security tax. Wages above the base are not subject to Social Security tax (employee or employer side), though they remain subject to the 1.45% Medicare tax (which has no wage base) and the 0.9% Additional Medicare Tax above filing-status thresholds. The wage base is one of three annual SSA adjustments, alongside the maximum monthly retirement benefit and the substantial-gainful-activity thresholds for disability eligibility.
Recent wage base figures: $142,800 (2021), $147,000 (2022), $160,200 (2023), $168,600 (2024), $176,100 (2025), $184,500 (2026). Year-over-year increases are based on the change in the national average wage index, which has run 3-5% in typical years and spiked to 9% in 2023 reflecting post-pandemic wage growth. The maximum employee-side Social Security tax in 2026 is 6.2% × $184,500 = $11,439.00; self-employed filers paying SECA owe double this maximum ($22,878.00) because they pay both the employee and employer halves.
The wage base creates a structural 'FICA cliff' for high earners — the marginal FICA rate cuts from 7.65% (Social Security 6.2% + Medicare 1.45%) to 1.45% (Medicare only) the moment year-to-date wages cross the base. For workers reaching the base mid-year, the post-base months see meaningfully lower payroll tax withholding, which can make late-year bonus or commission compensation more valuable than the same income paid earlier in the year. For self-employed filers, the cliff applies to net Schedule C/F income computed on Schedule SE.
Workers with multiple W-2s in the same year aggregate their wages against a single per-worker wage base. A worker earning $100,000 at Employer A and $90,000 at Employer B has $190,000 of total wages but pays Social Security only on the first $184,500. Each employer withholds independently on its own wage payments (Employer A withholds on the first $100,000; Employer B withholds on the first $90,000), producing total withholding of 6.2% × ($100,000 + $90,000) = $11,780. The over-withholding above the wage base cap is reconciled on Form 1040 line 31 (excess Social Security tax) and refunded with the regular tax refund. This is one of the small but real benefits of having multiple W-2 employers in the same year.
- FICA payroll taxes: the 7.65% on every US paycheck, explained FICA breaks down to 6.2% Social Security up to the wage base, 1.45% Medicare with no cap, plus a 0.9% surtax over $200k. What each line on your stub means.
- Self-employment tax 2026: how Schedule SE computes the 15.3% Schedule SE applies 15.3% (12.4% Social Security + 2.9% Medicare) to 92.35% of net earnings. See the wage-base cap and the half-SE-tax deduction.
- FICA (Federal Insurance Contributions Act) The combined Social Security (6.2%) and Medicare (1.45%) tax withheld from W-2 wages by employers, matched by an equivalent employer contribution. For 1099 self-employed income, the same tax appears as 15.3% self-employment tax on Schedule SE.
- Additional Medicare Tax A 0.9% federal surtax on wages, self-employment income, and railroad retirement compensation above filing-status thresholds ($200,000 single / $250,000 MFJ / $125,000 MFS). Enacted by the Affordable Care Act in 2010. Thresholds are not indexed for inflation.
- Schedule SE (Self-Employment Tax) The IRS form that computes self-employment tax — the self-employed equivalent of FICA — at a combined 15.3% on net earnings from self-employment, half of which is deductible above the line.
- COLA (Cost of Living Adjustment) The annual inflation-based adjustment applied to dollar amounts in the federal tax code, retirement contribution limits, Social Security benefits, and other indexed thresholds. Computed from a specified CPI-U window each year.
Educational content only. finbarrow is an independent editorial publication, not a licensed financial advisor, broker, tax preparer, or attorney. Verify rates and terms with the issuer or relevant regulator. See disclaimers.