Updated 30 March 2026
Social Security Wage Base Limit
The 2026 wage base is $168,600. You only pay the 6.2% Social Security tax on the first $168,600 of earned income. Anything above that threshold is exempt from Social Security tax.
$168,600
2026 wage base limit
$10,453
Max employee SS tax
$20,906
Max combined (employee + employer)
How the Wage Base Is Set
The Social Security Administration adjusts the wage base each year based on changes in the national average wage index (AWI). When average wages go up, the wage base goes up. When average wages stagnate (as they did in 2009-2011), the wage base stays flat.
The formula is straightforward: the SSA takes the 1994 wage base ($60,600) and multiplies it by the ratio of the AWI two years prior to the current year divided by the 1992 AWI. The result is rounded to the nearest $300. This is why the wage base can increase by different dollar amounts each year.
For 2026, the wage base is $168,600, unchanged from 2025. This reflects stable average wage growth during the reference period.
What Happens Above the Wage Base
Once your earned income exceeds $168,600 in a calendar year, your employer stops withholding the 6.2% Social Security tax. You will see a noticeable increase in your take-home pay for the remainder of the year.
For someone earning $250,000, this means:
- - First $168,600 is taxed at 6.2% = $10,453.20 in SS tax
- - Remaining $81,400 is exempt from SS tax, saving $5,046.80
- - Medicare tax (1.45%) still applies to the full $250,000 with no cap
- - Additional Medicare Tax (0.9%) applies to wages above $200,000
This is why Social Security tax is considered regressive: someone earning $168,600 and someone earning $1,000,000 pay exactly the same dollar amount in Social Security tax ($10,453.20). The effective rate drops as income rises above the cap.
Multiple Jobs and the Wage Base
If you work two or more W-2 jobs, each employer independently withholds Social Security tax on wages up to $168,600. Neither employer knows about your other job. If your combined wages exceed the wage base, you will have excess Social Security tax withheld.
To get the excess back, claim it as a credit on Form 1040 line 24 when you file your federal return. For example, if Job A pays $120,000 and Job B pays $80,000, you had $12,400 withheld total ($7,440 + $4,960) but only owed $10,453.20. You would get a refund of $1,946.80. Note: your employers do not get their matching overpayment refunded.
Wage Base History: 1937 to 2026
| Year | Wage Base | Max Employee Tax | Change | Note |
|---|---|---|---|---|
| 2026 | $168,600 | $10,453 | $0 | Unchanged from 2025 |
| 2025 | $168,600 | $10,453 | +$8,400 | |
| 2024 | $168,600 | $10,453 | +$8,400 | |
| 2023 | $160,200 | $9,932 | +$13,200 | Largest dollar increase ever |
| 2022 | $147,000 | $9,114 | +$4,200 | |
| 2021 | $142,800 | $8,854 | +$5,100 | |
| 2020 | $137,700 | $8,537 | +$4,800 | |
| 2019 | $132,900 | $8,240 | +$4,500 | |
| 2018 | $128,400 | $7,961 | +$1,200 | |
| 2017 | $127,200 | $7,886 | +$8,700 | |
| 2016 | $118,500 | $7,347 | +$1,500 | |
| 2015 | $118,500 | $7,347 | +$1,500 | |
| 2014 | $117,000 | $7,254 | +$3,300 | |
| 2013 | $113,700 | $7,049 | +$3,600 | |
| 2012 | $110,100 | $4,624 | +$3,300 | Payroll tax holiday (4.2% rate) |
| 2011 | $106,800 | $4,486 | $0 | Payroll tax holiday (4.2% rate) |
| 2010 | $106,800 | $6,622 | $0 | Frozen due to wage stagnation |
| 2009 | $106,800 | $6,622 | +$4,800 | |
| 2008 | $102,000 | $6,324 | +$4,500 | |
| 2007 | $97,500 | $6,045 | +$3,300 | |
| 2006 | $94,200 | $5,840 | +$4,200 | |
| 2005 | $90,000 | $5,580 | +$2,400 | |
| 2000 | $76,200 | $4,724 | ||
| 1995 | $61,200 | $3,794 | ||
| 1990 | $51,300 | $3,181 | Rate set at 6.2% (current) | |
| 1985 | $39,600 | $2,791 | ||
| 1980 | $25,900 | $1,588 | ||
| 1975 | $14,100 | $825 | ||
| 1970 | $7,800 | $374 | ||
| 1960 | $4,800 | $144 | ||
| 1950 | $3,000 | $45 | ||
| 1937 | $3,000 | $30 | Social Security begins |
Data sourced from SSA publication: Contribution and Benefit Base. Years between milestones are omitted for readability. See the full history page for every year.