Ssa maximum taxable earnings 2027

On 16 October 2026, the Social Security Administration officially announced the maximum amount of earnings subject to the Social Security payroll tax for the 2027 calendar year. The taxable maximum, often referred to as the "contribution and benefit base," has been set at $176,100. This represents an increase from the $170,400 limit established for 2026. Under the Federal Insurance Contributions Act (FICA), employees and employers are each required to pay a 6.2% Social Security tax on all earnings up to this threshold. Any income earned above the $176,100 limit in 2027 will not be subject to the Social Security portion of the payroll tax, though the 1.45% Medicare Hospital Insurance tax continues to apply to all earnings regardless of the amount. This annual adjustment is mandated by law and is based on the increase in the national average wage index. The announcement ensures that both employers and employees can adjust their payroll systems and tax planning strategies ahead of the new fiscal year beginning in January 2027.