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Have Congress or the IRS changed Social Security tax thresholds or rules for 2026?
Executive summary
Congress has not enacted a law in the provided sources that unambiguously changes Social Security payroll‑tax rates for 2026; instead, the Social Security Administration (SSA) announced routine annual adjustments: a 2.8% COLA for 2026 and an increase in the maximum taxable earnings (wage base) to $184,500 for 2026 (up from $176,100 in 2025) [1] [2]. Legislative proposals that would more dramatically change taxation of benefits or the payroll‑tax base — such as bills to eliminate federal taxes on Social Security benefits or to raise the wage base above the SSA figure — are discussed in reporting but have not been reported as enacted in the provided material [3] [4].
1. SSA’s official 2026 adjustments: COLA and a higher wage base
The Social Security Administration announced a 2.8% cost‑of‑living adjustment (COLA) for 2026, payable beginning January 2026 to beneficiaries and starting Dec. 31, 2025 for SSI recipients; alongside that COLA the SSA stated the maximum amount of earnings subject to the OASDI payroll tax (the taxable wage base) will rise to $184,500 for 2026 from $176,100 in 2025 [5] [2]. Multiple outlets repeat these SSA figures and emphasize that the tax rate itself (6.2% employee / 6.2% employer, 12.4% self‑employed) was not changed in the SSA announcement [6] [7].
2. What changed vs. what did not: rates, thresholds, and routine adjustments
Available reporting shows the change for 2026 is an upward adjustment of the taxable maximum tied to average wages and the automatic COLA — standard annual administrative actions — not a statutory change in the payroll‑tax rate or the fundamental method of taxing benefits [8] [1]. The tax rate for Social Security withholding remains the same; only the amount of income subject to that rate increased because SSA raised the wage base for 2026 [6] [4].
3. Proposals in play: bills that would alter benefit taxation or the wage base
Journalists have reported legislative proposals that, if passed, would alter how Social Security benefits are taxed or who pays payroll taxes. For example, reporting describes a bill that would end federal taxes on Social Security benefits starting with 2026 tax returns and would offset revenue by raising the payroll‑tax wage base (one version mentioned a $250,000 threshold for expanded coverage) — but that reporting frames these as proposals, not as enacted law in the sources provided [3] [9]. The SSA and major outlets do not report such a bill as having been enacted into law in the provided documents [2] [1].
4. Who will feel the 2026 changes most — and how to think about them
Higher earners who previously had wages above the 2025 cap will have additional wages subject to FICA in 2026 until they hit $184,500, increasing their total Social Security withholding; as an example, outlets calculate one‑year withholding increases for those at or above the new cap [4] [7]. Meanwhile, most beneficiaries will see the 2.8% COLA increase their monthly checks; however, Medicare premium adjustments and any tax changes (if Congress acts) can offset part of that gain, according to reporting [10] [1].
5. Conflicting projections and earlier forecasts — read the source carefully
Some earlier or projection‑style pieces gave slightly different forecast figures (for instance, a projection of about $183,300 or roughly $183,600 for 2026 in trustee or analyst materials), but the SSA’s official announcement and fact sheets settled the wage base at $184,500 — the number cited by SSA press materials and most explanatory reporting [11] [12] [2]. When projections and trustee forecasts differ, the SSA announcement is the operative figure for withholding and payroll systems [8] [13].
6. What the IRS changed (or didn’t) in the reporting you provided
The provided IRS material (IRS Notice 703 rev. Nov. 2025) and news pieces discuss how Social Security benefits are treated for income‑tax purposes and provide guidance on filing, but the sources do not report a new IRS rule in 2026 that alters the statutory thresholds for taxing Social Security benefits; instead, reporting highlights a separate legislative proposal and state actions (e.g., West Virginia phasing out state taxation of benefits) without showing federal IRS threshold changes enacted for 2026 in the supplied documents [14] [9] [3]. Available sources do not mention an IRS‑driven change to federal Social Security benefit tax thresholds for 2026.
7. Bottom line and what to watch next
As of the reporting provided, the concrete, implemented changes for 2026 are administrative: a 2.8% COLA and an SSA‑set taxable maximum of $184,500 [5] [2]. Legislative proposals that would eliminate federal taxation of benefits or alter the wage base further are being reported as proposals and merit watching — if Congress passes such bills and the President signs them, reporting would update the legal status; that outcome is not documented in the current sources [3]. For definitive tax‑filing or payroll withholding effects, rely on SSA releases and IRS guidance as they update after any enacted law [8] [14].