Social Security and Medicare Numbers for 2027: $192,300 Wage Base, Maximum Tax and Other Limits

By Web Asset House Studio · October 29, 2026

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How we wrote this: A summary of the Social Security Administration's 2027 COLA fact sheet and its contribution and benefit base and quarter-of-coverage pages, plus IRS Publication 15's rules for withholding (linked below), checked October 29, 2026. IRS employer publications for 2027 weren't out yet; the 2027 dollar figures come from SSA. This is general information, not tax advice.

Every October the Social Security Administration announces next year's numbers. For 2027 the headline for payroll is a higher wage base: more of a high earner's pay is subject to Social Security tax.

The 2027 numbers at a glance

Item	2026	2027
Social Security wage base (taxable maximum)	$184,500	$192,300
Social Security tax rate	6.2% employee + 6.2% employer	same
Maximum Social Security tax, employee share	$11,439.00	$11,922.60
Medicare tax rate	1.45% each, no wage cap	same
Self-employed rate (Social Security + Medicare)	15.3%	same
Earnings for one quarter of coverage	$1,890	$1,970
Cost-of-living adjustment (COLA)		3.6%

The 2026 maximum is simple math from SSA's figures ($184,500 × 6.2%); SSA states the 2027 maximum, $11,922.60, directly.

For employers: when Social Security withholding stops

Publication 15 explains the mechanics: multiply each wage payment by the employee rate, and stop Social Security withholding (and your matching share) once an employee's wages for the year reach the wage base. Medicare has no wage base; all covered wages are taxed.

For 2027, that means:

Social Security: 6.2% from the employee and 6.2% from you, on wages up to $192,300 per employee. On that last dollar, each side has paid $11,922.60.
Medicare: 1.45% each on all wages, all year.
Additional Medicare Tax: you must withhold an extra 0.9% from an employee's wages over $200,000 in a calendar year, starting in the pay period when wages pass $200,000. There's no employer share of this one. (SSA's fact sheet notes the individual threshold is $200,000, or $250,000 for married couples filing jointly; for employer withholding, Publication 15 uses $200,000.)

Example (2027): an employee paid $250,000.

Tax	Employee	Employer
Social Security (6.2% of $192,300)	$11,922.60	$11,922.60
Medicare (1.45% of $250,000)	$3,625.00	$3,625.00
Additional Medicare (0.9% of $50,000)	$450.00	none

Check that your payroll software or provider has the 2027 base before the first 2027 payroll. Then report it all on Form 941 each quarter and on the 2027 W-2s.

Two jobs, too much withheld? Each employer applies the wage base separately, so someone with two jobs can have more than the maximum withheld. IRS Publication 505 counts that "excess social security" withholding toward the employee's own tax payments when wages from two or more employers top the base.

For the self-employed

Self-employed people pay both halves: 12.4% Social Security on net earnings up to the base, and 2.9% Medicare on all of it. For 2027, the 12.4% part stops at $192,300. How net earnings are figured (the 92.35% rule) and the half-of-SE-tax deduction are in self-employment tax explained. A higher base can mean higher quarterly estimated payments for top earners.

Quarters of coverage

You earn Social Security work credits in "quarters of coverage." For 2027, SSA says each $1,970 of covered earnings counts as one, up to four per year, so $7,880 of earnings in 2027 earns the full four. That matters for owners who pay themselves little through a business.

If you or your workers already collect benefits

From SSA's fact sheet:

COLA: benefits rise 3.6%, starting with December 2026 benefits payable in January 2027.
Earnings test, under full retirement age all year: $25,560 ($2,130 a month); SSA withholds $1 of benefits for every $2 earned above it.
Earnings test, in the year you reach full retirement age: $67,920 ($5,660 a month), counting only months before that birthday; $1 withheld for every $3 above it. From the month you reach full retirement age, there's no limit.
Maximum benefit for a worker retiring at full retirement age: $4,188 a month.