Social Security Payroll Tax Cap Rises to $184,500 for 2026; COLA Climbs to 2.8%
The maximum earnings subject to Social Security tax increase to $184,500 in 2026, while beneficiaries receive a 2.8% cost-of-living adjustment. Self-employed workers will pay more Social Security tax on higher earnings.
The Social Security Administration announced that Social Security benefits, including Old-Age, Survivors, and Disability Insurance (OASDI), and Supplemental Security Income (SSI) payments for 75 million Americans will increase 2.8 percent in 2026. On average, Social Security retirement benefits will increase by about $56 per month starting in January.
Higher Payroll Tax Threshold
Based on the increase in average wages, the maximum amount of earnings subject to the Social Security tax (taxable maximum) is slated to increase to $184,500 from $176,100. If you earn wages, you pay 6.2 percent through FICA withholding from your paycheck, and your employer pays 6.2 percent, while self-employed people pay the full 12.4 percent, and in 2026 you'll pay the tax on work income up to $184,500.
For expat workers and higher earners: If you earn above $184,500 in W-2 wages in 2026, you'll pay Social Security tax on that higher threshold—good news for late-career earnings. Self-employed visa holders and remote workers should account for the $184,500 cap when calculating Self-Employment Tax (SE Tax). The 2.8% COLA applies to US Social Security beneficiaries; if you're earning income in the US now but plan to claim benefits later, these adjustments show how your future benefits will be calculated.
Sources
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