You may not need to pay Social Security tax on all of your earnings if you have a high salary. Workers pay into the Social Security system until their income reaches the Social Security tax limit for that year. Earnings above this amount are not subject to Social Security tax or factored into Social Security payments in retirement.
As you consider your income and Social Security tax, it can be helpful to know the following:
— What is the Social Security tax limit?
— When do you stop paying into the Social Security system?
— What is the maximum amount of Social Security tax?
— How has the Social Security tax limit changed over time?
— What happens when your earnings exceed the taxable maximum?
— Is there a Medicare tax limit?
What Is the Social Security Tax Limit?
The Social Security tax limit is the maximum amount of earnings subject to Social Security tax, which is 12.4%. Workers who earn less than the limit will pay a 6.2% tax on their earnings with their employer paying another 6.2%. People who are self-employed pay the entire 12.4% tax themselves, up to the annual limit.
The Social Security tax limit is set each year, and in 2025, it is $176,100. For earnings in 2026, the limit is $184,500.
To know if you exceed the limit, check your overall earnings. “Thoroughly review all sources of income, including wages, self-employment earnings and other taxable compensation,” said Joseph Carpenito, a financial advisor at Materetsky Financial Group in Boynton Beach, Florida, in an email. “Understanding the composition of your income is crucial in managing your Social Security tax liability.”
When Do You Stop Paying Into the Social Security System?
Most workers pay 6.2% of their earnings into the Social Security system each year, and employers match this amount. Self-employed workers contribute 12.4% of their paychecks to Social Security. High earners only pay into the Social Security system until their pay reaches the Social Security taxable maximum, set at $176,100 in 2025 and $184,500 in 2026.
Earnings over the maximum limit are not taxed by Social Security or used to calculate future Social Security payments.
“Consider utilizing withholding adjustments by completing a Form W-4 with each employer,” Carpenito said. “This allows you to control the amount withheld for Social Security tax. Exercise caution to avoid over-withholding, which could result in a tax bill at the end of the year.”
What Is the Maximum Amount of Social Security Tax?
An individual who earns $176,100 or more in 2025 contributes $10,918.20 to Social Security, and their employer contributes a matching amount. Self-employed individuals who earn more than the taxable maximum must contribute $21,836.40 to Social Security in 2025.
For 2026, an individual who earns $184,500 would contribute $11,439, with the employer matching the same amount. Self-employed workers may pay as much as $22,878 in Social Security taxes in 2026.
“Stay vigilant about your income levels throughout the year,” said Dane Janas, a tax accountant and owner of Financial Umbrella in Wilmington, North Carolina, in an email. “Regularly assess your earnings to ensure you remain within the Social Security tax limit. Adjustments to withholding may be necessary if you are on track to surpass the limit.”
[See: 10 Strategies to Maximize Social Security.]
How Has the Social Security Tax Limit Changed Over Time?
The Social Security tax was first collected in 1937, and for more than a decade, a tax of 2% was assessed on incomes up to $3,000. It wasn’t until the early 1970s that annual tax limit adjustments were made. In 1990, the tax rate was set to the current 12.4%, and the tax limit in that year was $51,300.
Now, the Social Security taxable maximum is adjusted each year to keep up with changes in average wages.
Here’s a look at how the Social Security tax limit has changed over the last 30 years, according to the Tax Policy Center:
| Year | Maximum taxable earnings |
| 1995 | $61,200 |
| 2000 | $76,200 |
| 2005 | $90,000 |
| 2010 | $106,800 |
| 2015 | $118,500 |
| 2020 | $137,700 |
| 2025 | $176,100 |
The 2026 taxable maximum limit is $8,400 more than the 2025 maximum limit of $176,100 and $77,700 higher than the 2010 limit of $106,800.
What Happens When Your Earnings Exceed the Taxable Maximum?
After your earnings exceed the taxable maximum each year at a given job, Social Security taxes will stop being withheld, and you will notice a bump in your paychecks.
If you earn more than the taxable maximum through multiple jobs, each of your employers must withhold Social Security taxes from your wages until you exceed the tax limit at that individual job. When you file your tax return, however, you can claim a refund for Social Security taxes withheld in excess of the maximum amount for that year.
“Communication with all employers is paramount, especially for those with multiple sources of income,” Janas said. “Provide accurate and up-to-date information on cumulative earnings to enable each employer to adjust withholding appropriately.” Doing so can lower the risk of overpaying.
However, you can take additional steps if you pay too much in taxes. “If you have overpaid, you can claim a credit against your income tax when you file your income tax return,” said JP Geisbauer, a certified financial planner at Centerpoint Financial Management in Irvine, California, in an email.
[Read: What Happens if You Work While Receiving Social Security.]
Is There a Medicare Tax Limit?
While there’s a cap on earnings that is subject to the Social Security tax, there is no limit on Medicare tax. All covered wages are subject to a 1.45% Medicare tax that is matched by employers. The Medicare tax for self-employed individuals is 2.9%.
There is an additional 0.9% Medicare tax on wages in excess of $200,000 in a calendar year, which employers do not match.
More from U.S. News
How to Apply for Social Security
Frequently Asked Social Security Benefit Questions
How to Correct Your Social Security Earnings Record
What Is the Social Security Tax Limit? originally appeared on usnews.com
Update 12/01/25: This story was published at an earlier date and has been updated with new information.
