Social Security Tax 2026

Social Security tax funds retirement, disability, and survivor benefits.

Employee Rate

6.2% on earnings up to $176,100 (2026 wage cap estimate). Employer matches 6.2%. Combined: 12.4%. Above cap: 0% additional SS tax.

Self-Employment Tax

12.4% on net self-employment income. Plus 2.9% Medicare (no cap). Total SE tax: 15.3%. Deductible half of SE tax on 1040.

Medicare Surtax

0.9% additional Medicare tax on earnings over $200K (single) / $250K (married). Withholding: employer withholds on wages > $200K.

Who Pays

All W-2 employees. All self-employed. Railroad workers. Domestic workers (above threshold). No exemption for high earners.

Wage Cap Impact

High earners: effective SS rate decreases. $176,100 cap means income above pays 0% SS tax. Combined with income tax: high earners pay lower effective SS rate.

Strategies

Maximize 401(k)/IRA (reduces taxable income but not SE tax). S-Corp salary optimization (reasonable salary + distributions). Hire family members. Use tax credits for retirement contributions.