Social Security Raises 2027 Taxable Earnings Cap to $192,300 as OASI Faces 2032 Shortfall
Updated
Updated · Yahoo Finance · Oct 15
Social Security Raises 2027 Taxable Earnings Cap to $192,300 as OASI Faces 2032 Shortfall
3 articles · Updated · Yahoo Finance · Oct 15
Summary
$192,300 will be the maximum earnings subject to Social Security payroll tax in 2027, up from $184,500 this year.
Workers and employers will each pay 6.2% on wages up to that cap, while self-employed workers pay the full 12.4%, putting the maximum 2027 withholding at $23,842.
Income above $192,300 remains exempt from the Social Security tax, keeping the earnings cap at the center of Washington's debate over how to shore up the program.
The pressure is growing because Social Security's Old-Age and Survivors Insurance trust fund is projected to run out by the end of 2032, after which it could pay about 80% of benefits.