Wage base 2027 (projected)
$190,200
$184,500 in 2026
Max employee tax
$11,792.40
+$353.40 on 2026
2027 COLA estimate
3.4%
2.8% for 2026
Earnings test (projected)
$25,200
a year, under full retirement age
2026 figures from SSA. The 2027 wage base and earnings test are the 2026 Trustees Report projections. The COLA estimate is PayMetric Labs' own modeled estimate from BLS data.
2027 Social Security calculator: your paycheck and your benefit
If you work: Social Security tax in 2027
Box 3 of a W-2: before 401(k) deferrals, which don't reduce it
2027 Social Security tax (projected)
$11,792.40
6.2% of wages up to $190,200
Change against 2026
+$353.40
2026: $11,439.00 on up to $184,500
Withholding stops
Paycheck 25
of 26, then each check is about $477 bigger
If you collect benefits: your check after the 2027 COLA
The average retired worker gets $2,071 in 2026
From January 2027 at 3.4% (estimate)
$2,141 a month
+$70 a month, +$840 a year
Until SSA announces on October 14, the 2027 wage base is the Trustees' projection and the COLA is PayMetric Labs' own modeled estimate from July and August CPI-W, assuming September matches August. Employee share only, one employer. SSA rounds benefits down to the dollar; the Part B premium change is not included.
How the Social Security wage base works
Every paycheck loses 7.65% to FICA: 6.2% Social Security and 1.45% Medicare. Your employer pays the same again. Medicare has no ceiling. Social Security does: once your wages for the calendar year reach the wage base (officially the contribution and benefit base), withholding stops until January.
The base isn't set by Congress each year. It follows a formula in the Social Security Act: the 1994 base of $60,600, scaled by how much the national average wage index (AWI) has grown since 1992, rounded to the nearest $300. The 2027 base uses the 2025 AWI, which SSA publishes on the same day as the COLA.
You can check the formula against this year. The 2024 AWI of $69,846.57 gives $184,500, exactly the 2026 base. The Trustees assume the 2025 AWI grew 3.1% to $72,025.07, which produces $190,200. If wages grew faster than that, the base comes in higher.
| Year | Wage base | Max employee tax |
|---|---|---|
| 2024 | $168,600 | $10,453.20 |
| 2025 | $176,100 | $10,918.20 |
| 2026 | $184,500 | $11,439.00 |
| 2027 (projected) | $190,200 | $11,792.40 |
Sources: SSA 2026 fact sheet, 2026 Trustees Report, Table V.C1.
What the 2027 wage base means for your paycheck
Below the base, nothing changes: you pay 6.2% on every dollar in both years. Above it, two things happen. You pay tax on $5,700 more of your salary, and the point where withholding stops moves later in the year. Biweekly pay, one employer, PayMetric Labs' own modeled estimate:
| Salary | 2027 Social Security tax | Change | Withholding stops (2026 / 2027) |
|---|---|---|---|
| $150,000 | $9,300.00 | +$0.00 | Never / never |
| $200,000 | $11,792.40 | +$353.40 | Check 24 / check 25 |
| $250,000 | $11,792.40 | +$353.40 | Check 20 / check 20 |
| $300,000 | $11,792.40 | +$353.40 | Check 16 / check 17 |
On $300,000, each biweekly check carries $715.38 of Social Security tax until the base is reached, then none. If you budget around that late-year bump, it arrives a little later in 2027. Your employer pays a matching $353.40 more for every employee above the base, worth knowing if you set salary budgets for a team.
The change matters most for people with two jobs. Each employer withholds up to the full base on its own, so two salaries that together pass $190,200 over-withhold. You get the excess back as a credit on Schedule 3 of your return, not in your paycheck.
See your whole paycheck, not just FICA
Federal, state, Social Security and Medicare on any pay frequency.
How the 2027 COLA is calculated, and our estimate
The COLA is the rise in the average CPI-W (the consumer price index for urban wage earners) for July, August and September over the same three months a year earlier, rounded to one decimal place. Two of the three months are already published.
The third-quarter 2025 average was 317.265. July 2026 came in at 327.104 and August at 328.481. If September matches August, the COLA is 3.4%. Here is how September moves it:
| September CPI-W against August | 2027 COLA |
|---|---|
| Down 0.3% | 3.3% |
| Unchanged | 3.4% |
| Up 0.2% | 3.5% |
| Up 0.5% | 3.6% |
That puts the likely range at 3.3% to 3.5%, well above the 2.7% the Trustees assumed in the spring, before prices picked up. The Senior Citizens League forecasts 3.5%. On the average retired worker's $2,071 a month, every 0.1 point is roughly $2 a month.
What you actually receive also depends on the 2027 Medicare Part B premium, which is usually deducted from your check and is announced separately by CMS. A large premium rise can eat part of a COLA. SSA mails COLA notices in December and posts them in your my Social Security account.
CPI-W: BLS series CWUR0000SA0, not seasonally adjusted, checked October 4, 2026.
Working while you collect: the 2027 earnings test
If you claim before full retirement age and keep working, SSA holds back benefits once your earnings pass a limit. In 2026 it withholds $1 for every $2 above $24,480, and in the year you reach full retirement age, $1 for every $3 above $65,160 (counting only earnings before the month you reach it). The Trustees project $25,200 and $67,200 for 2027.
Withheld benefits aren't lost. At full retirement age SSA recalculates your monthly amount to credit the months it held back. From the month you reach full retirement age, there's no limit at all.
What to do before January
- Earning near or above $190,200? Expect slightly smaller late-year paychecks in 2027 than in 2026, and check a full paycheck in our take-home calculator.
- Two jobs with combined wages above the base? Note the Box 4 totals on each W-2 so you claim the excess when you file.
- Self-employed? Your fourth-quarter estimate is due January 15. Our 1099 estimated tax guide shows how much to set aside.
- Changing jobs or adding one? Review your W-4. Our W-4 guide covers the two-job case.
- Collecting benefits and working? Compare your expected 2027 earnings with the new limit before the year starts.
Social Security 2027 questions
When will the 2027 COLA and wage base be announced?
On Wednesday, October 14, 2026, shortly after the Bureau of Labor Statistics publishes September inflation at 8:30am Eastern. The Social Security Administration releases the COLA, the new wage base, the earnings test limits and the maximum benefit together in one fact sheet.
What is the Social Security tax limit for 2027?
The Social Security Trustees project $190,200, up from $184,500 in 2026. At 6.2%, the most an employee would pay is $11,792.40, which is $353.40 more than in 2026. SSA confirms the figure on October 14.
Why did Social Security tax disappear from my paycheck?
Because your wages for the year passed the wage base ($184,500 in 2026). Your employer stops withholding the 6.2% for the rest of the calendar year, so your net pay jumps. It isn't an error, and it resets on your first paycheck in January, which is why that check looks smaller. Medicare tax keeps going, because it has no cap.
I have two jobs and paid more than the maximum. Do I get it back?
Yes. Each employer withholds up to the wage base on its own, so two jobs can take more than the annual maximum between them. You claim the excess as a credit on Schedule 3 when you file your return. If a single employer took too much, the IRS credit doesn't apply: ask that employer to refund it.
Do 401(k) contributions reduce Social Security tax?
No. Traditional 401(k) deferrals lower your income tax, but Social Security and Medicare tax are still charged on them. That is why Box 3 of your W-2 (Social Security wages) is often higher than Box 1. Some health insurance and HSA contributions made through a cafeteria plan do reduce Social Security wages.
Does Medicare tax have a wage limit?
No. The 1.45% employee Medicare tax applies to every dollar of wages. Above $200,000 in a year, your employer also withholds the 0.9% Additional Medicare Tax. That threshold is set in law and doesn't rise with inflation.
Is a COLA guaranteed every year?
No. If the CPI-W average for July to September doesn't rise over the year before, there is no COLA, and the law then also freezes the wage base for the following year. That happened in 2010, 2011 and 2016. With inflation running above 3% in 2026, a COLA for 2027 is not in doubt; only its size is.
I'm self-employed. What does the higher wage base cost me?
You pay both halves, 12.4%, on 92.35% of your net self-employment earnings up to the wage base. If your earnings are above the 2027 base, that is up to $706.80 more than in 2026. Half of it is deductible against income tax.
Methodology and limits
2026 figures come from the SSA 2026 COLA fact sheet. Until SSA announces, 2027 wage base and earnings test figures are the intermediate projections in the 2026 Trustees Report. The COLA estimate is PayMetric Labs' own modeled estimate, computed from published CPI-W values with SSA's method; the only assumption is the September value. All checked October 4, 2026.
Paycheck examples assume equal biweekly pay from one employer and show the employee share only. Benefit figures apply the COLA to your current check and round down to the dollar; SSA applies it to your primary insurance amount, so your notice may differ by a dollar. This is general information, not tax or retirement advice.