Social Security

Goodbye to the $176,100 tax income limit in 2026: updated maximum amount of taxable earnings for Social Security

The SSA’s latest cost-of-living adjustment will change benefits, and expand the income subject to Social Security tax next year.

Calum Roche Joseph McMahon

Update: Nov 4th, 2025 09:59 EST

Every year, the Social Security Administration (SSA) announces a cost-of-living adjustment (COLA) for beneficiaries. This annual boost helps benefits maintain their purchasing power as prices rise from one year to the next.

The COLA doesn’t just affect benefit checks – it also influences how much of a worker’s income is subject to Social Security taxes.

Although the 12.4 percent tax on wages remains in place, the maximum income that can be taxed will rise again in 2026. The Social Security tax is split evenly between workers and employers, each paying 6.2 percent of the employee’s earnings. That rate has stayed the same since 1990, but the maximum taxable earnings limit continues to increase year by year.

Still waiting on November payments? Here’s why

How much is the maximum amount of earnings to be taxed in 2026?

The maximum amount of income subject to Social Security tax in 2026 is $184,500, up from $176,100 in 2025. Income above this threshold will not be taxed for Social Security purposes.

This change means that higher earners will contribute more toward the program in 2026. Here’s how the taxable maximum has evolved over the past decade:

Year	Amount
2016	$118,500
2017	$127,200
2018	$128,400
2019	$132,900
2020	$137,700
2021	$142,800
2022	$147,000
2023	$160,200
2024	$168,600
2025	$176,100
2026	$184,500

2026 COLA: Benefits to rise by 2.8%

Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2024 through the third quarter of 2025, Social Security and Supplemental Security Income (SSI) recipients will receive a 2.8% cost-of-living adjustment in 2026.

That means the average retiree’s monthly payment will go from $2,015 to $2,071 – a modest but meaningful bump designed to keep pace with inflation.

Here’s a look at how average payments will change:

Category	2025	2026
All Retired Workers	$2,015	$2,071
Aged Couple, Both Receiving Benefits	$3,120	$3,208
Widowed Mother and Two Children	$3,792	$3,898
Aged Widow(er) Alone	$1,867	$1,919
All Disabled Workers	$1,586	$1,630

Other key Social Security changes for 2026

The SSA has also announced several other important updates for next year:

Category	2025	2026
Quarter of Coverage	$1,810	$1,890
Retirement Earnings Test (Under full retirement age)	$23,400/yr. ($1,950/mo.)	$24,480/yr. ($2,040/mo.)
Earnings Limit (Year you reach full retirement age)	$62,160/yr. ($5,180/mo.)	$65,160/yr. ($5,430/mo.)
Disability Threshold (Non-Blind)	$1,620/mo.	$1,690/mo.
Disability Threshold (Blind)	$2,700/mo.	$2,830/mo.
Trial Work Period	$1,160/mo.	$1,210/mo.
Maximum Benefit at Full Retirement Age	$4,018/mo.	$4,152/mo.
SSI Payment Standard (Individual)	$967/mo.	$994/mo.
SSI Payment Standard (Couple)	$1,450/mo.	$1,491/mo.

The resource limits for SSI – $2,000 for individuals and $3,000 for couples – will remain unchanged in 2026.

Social Security tax rates remain the same

The overall tax rate for 2026 will not change:

Employees: 7.65% (6.2% for Social Security + 1.45% for Medicare)
Self-employed workers: 15.3% total

High earners making over $200,000 (or $250,000 for married couples filing jointly) will continue to pay an additional 0.9% Medicare surtax, as in previous years.

What if you have multiple jobs?

For workers with more than one employer in a year, each employer must withhold Social Security taxes up to the maximum limit.If your combined wages across jobs exceed $184,500, you may end up paying more than the maximum amount. In that case, you can claim a refund for the excess Social Security tax withheld when filing your federal tax return with the IRS.