Social Security Wage Base (2026)
The annual indexed cap on wages subject to Social Security payroll tax — affects FICA withholding on severance.
Current value (2026)
$184,500
Primary source
Historical values
| Year | Value |
|---|---|
| 2026 | $184,500 |
| 2025 | $176,100 |
| 2024 | $168,600 |
What this means if you were laid off
Your employer stops withholding Social Security tax once your cumulative wages for the year cross $184,500 (for 2026, per the SSA 2026 COLA fact sheet). That cap is the Social Security wage base. It resets every January 1.
If your layoff happens in the second half of the year, you may have already crossed the cap. Your severance, in that case, carries zero Social Security withholding. At 6.2%, the difference on a $50,000 severance payment is $3,100 that stays in your pocket. That is real money most people do not notice when reviewing their offer.
If your layoff happens early in the year and your severance plus your prior earnings for the year do not reach $184,500, your employer withholds the full 6.2% on every dollar of severance. This is correct and expected.
Medicare withholding applies separately and has no cap. Your employer withholds 1.45% on all wages regardless of total income. If your combined compensation for the year exceeds $200,000, an additional 0.9% Medicare surtax applies to the amount over that threshold, per 26 U.S.C. Section 3101(b)(2). Your employer withholds the additional 0.9% starting at $200,000 even if your filing status means your actual surtax threshold is different.
The wage base itself is indexed annually by the Social Security Administration, tied to average national wage growth. It has increased every year since 2017. For planning purposes, assume the base will be modestly higher next year.
This page shows the current base, five years of history, and the issuing agency source. The tax calculator applies the current wage base to your FICA estimate automatically.
Frequently asked questions
- What is the Social Security wage base for 2026?
- $184,500, per the SSA 2026 COLA fact sheet. The base is indexed annually and published each October.
- How do I know if I have already hit the cap at the time of my layoff?
- Add up your W-2 wages from your employer for the year through your last regular paycheck. If that total exceeds $184,500, your severance has no Social Security withholding.
- Does Medicare withholding also stop at the cap?
- No. Medicare (1.45%) applies to all wages without a cap. An additional 0.9% Medicare surtax applies on wages above $200,000 in a calendar year under 26 U.S.C. Section 3101(b)(2).
- What if my employer has been withholding SS taxes after I already hit the cap?
- This is an over-withholding error. The excess is credited against your total FICA liability when you file. Contact payroll to correct it before the year closes if possible.
- Does the wage base apply to my total compensation across multiple employers?
- Each employer withholds SS taxes independently up to $184,500 from wages they pay you. If you work for multiple employers and your combined wages exceed the base, you have excess withholding that is refunded on your return.
See your full FICA estimate
The calculator applies the current wage base to your severance and shows exactly how much SS and Medicare is withheld.
Calculate your severanceLast verified: 2026-05-04. Not legal, financial, or tax advice. Methodology.