Some Workers Will Pay More in Social Security Payroll Taxes Next Year. Are You One of Them?

Under normal circumstances, we'd have already gotten a preview of what Social Security will look like in 2026. The government shutdown has delayed the announcement of the key program changes that will take effect on Jan. 1.

Some of these, like the cost-of-living adjustment (COLA), could make life a little easier for some Americans. But another update could cost workers more in Social Security payroll taxes next year. We don't know all the details yet, but here's what we can say for sure.

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The taxable wage base will increase

Every October, the Social Security Administration makes several changes to the program for the following year based on the latest inflation data. One of these changes is an increase to the taxable wage base -- the maximum amount of income you pay Social Security taxes on each year.

In 2025, this is $176,100. If you earn less than this, you're already paying Social Security taxes on all of your income. If you earn more than this, anything over $176,100 isn't subject to the 12.4% tax, which is split evenly between employee and employer.

It's very likely that the taxable wage base increases in 2026, but we don't yet know how much it will change. The Social Security Administration was supposed to announce the 2026 COLA and the change to the taxable wage base on Oct. 15, 2025. But the government shutdown has delayed the announcement until Oct. 24, 2025.

Who will be affected?

The wealthiest earners will notice changes, as they'll have to pay Social Security taxes on a larger portion of their income than they did before. But this increase likely won't give you sticker shock at tax time.

The taxable wage base increased from $168,600 to $176,100 from 2024 to 2025 -- a difference of $7,500. That would amount to about $465 in additional taxes. For someone earning well into the six figures, that's not much.

You could also pay more in Social Security payroll taxes next year, even if you earn less than the taxable wage base. If you got a raise or a new job that pays more, you will owe taxes on this additional income. The good news is, since you're used to paying Social Security taxes on all your income already, you probably won't notice the difference.

The silver lining

The thought of giving the government more of your hard-earned cash isn't appealing, but it could pay off for you in retirement. The Social Security Administration determines the size of your benefit checks by looking at how much you've paid in benefit taxes throughout your career.

Generally, the more you've paid in taxes, the larger your retirement benefit and the larger the spousal benefit your partner is eligible for if you're married. However, there are other factors that affect the size of your checks, including your age at signup.

The Social Security Administration tracks how much you've paid taxes on during all your working years in your earnings record, which you can view in your my Social Security account. Get in the habit of checking yours at least annually to make sure it looks accurate. If you're a high earner, yours might show the taxable wage base for a given year instead of your actual income. That's OK.

But if you notice any obvious mistakes, like no income for a year you know you worked, contact the Social Security Administration promptly to get it corrected. You'll need to provide copies of your tax documentation showing your real income for that year. Fixing this issue now will ensure you get the amount you deserve in retirement.

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