Social Security Raises 2027 Wage Cap to $192,300, Lifting Max Tax to $11,922.60
Updated
Updated · Yahoo Finance · Nov 7
Social Security Raises 2027 Wage Cap to $192,300, Lifting Max Tax to $11,922.60
3 articles · Updated · Yahoo Finance · Nov 7
Summary
$192,300 will be the 2027 Social Security wage cap, up from $184,500 in 2026, pushing the maximum employee payroll tax to $11,922.60 for workers at or above that income.
The increase stems from Social Security's 12.4% payroll tax applying only up to the annual cap; for employees, that burden is split with employers, leaving each side to cover 6.2%.
Self-employed workers at the cap face the full 12.4% levy themselves, bringing their maximum 2027 Social Security tax bill to about $23,845.20.
The change mainly hits higher earners because wages above the cap remain exempt, while debate continues over whether lawmakers should raise or eliminate the ceiling entirely.