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Fact check: What are the tax rates for Social Security benefits in 2026?
Executive Summary
The payroll tax rates that fund Social Security and Medicare for 2026 are reported to remain unchanged at the current statutory rates: 6.2% for the Social Security portion (12.4% total split between employer and employee) and 1.45% for Medicare (2.9% total), with self‑employed individuals paying both halves (totaling 15.3% including both programs). The taxable wage base for Social Security is rising for 2026, increasing the maximum Social Security tax per worker and the dollar amount of earnings subject to the 6.2% rate [1] [2].
1. Payroll Taxes Didn’t Change — But the Wage Base Did, and That Matters
All cited fact sheets and reporting note that the statutory payroll tax rates themselves remain the same going into 2026, meaning workers and employers each pay 6.2% toward Social Security and 1.45% toward Medicare, while self‑employed taxpayers pay the combined amounts (15.3%) and high earners face additional Medicare surtaxes above specific thresholds. What does change is the taxable maximum wage base subject to the 6.2% Social Security tax; reporting indicates the top tax amount per worker rises by roughly $1,041.60 to $22,878, reflecting a higher cap on taxable earnings rather than a higher percentage rate [1] [2]. The practical impact is higher overall payroll tax paid by higher‑earning workers even though the rate is stable.
2. How Income Tax on Social Security Benefits Still Uses a Tiered System
Separate from payroll taxes, federal income tax treatment of Social Security benefits remains governed by the established tiered thresholds that determine whether up to 85% of benefits become taxable based on combined income calculations. Reporting explains combined income includes adjusted gross income, non‑taxable interest, and half of Social Security benefits, with earlier threshold cutoffs ($25,000/$34,000 single and $32,000/$44,000 married) still used to compute the taxable portion. The mechanics and forms (SSA‑1099 used for reporting benefits) are affirmed in 2025 and October 2025 explainers that clarify how benefits feed into taxable income even as payroll tax parameters change [3] [4].
3. The 2026 Cost‑of‑Living Adjustment and Related Tax Notes
Multiple items for 2026 are interrelated: a Cost‑of‑Living Adjustment (COLA) of 2.8% is reported for benefits, while fact sheets reiterate the payroll tax structure and the higher taxable wage base. The COLA increases monthly Social Security checks, which can change a recipient’s combined income and potentially push more benefits into taxable territory for income tax purposes. The fact sheets and HR reporting emphasize the COLA’s impact on beneficiaries’ taxable income, but do not assert any change in the statutory payroll tax percentages — the change is in benefit amounts and the wage base for payroll tax calculations [5] [2].
4. Legislative Proposals Could Alter the Landscape — But Not Yet
A legislative proposal, the You Earned It, You Keep It Act, is reported to propose permanently eliminating federal income taxes on Social Security benefits starting in 2026, while offsetting revenue loss by raising the payroll tax wage base. This bill, if enacted, would change income tax treatment of benefits and potentially increase payroll tax burdens for higher earners by raising the wage cap. As of the late 2025 reporting, this remains a proposal and not law, so current guidance retains existing income tax thresholds and payroll rates pending congressional action [6] [2].
5. Where Sources Agree — And Where They Leave Gaps
All provided sources converge on unchanged statutory payroll rates for Social Security and Medicare for 2026 and on an increased taxable wage base leading to a higher maximum tax per worker. They also consistently describe the tiered income tax treatment of benefits using combined income formulas. The main gap across reports is specifics about the new taxable wage base dollar figure in every source snippet; one report states the per‑worker maximum tax increase ($1,041.60), but full confirmation of the exact wage cap number and its official announcement is not uniformly included in every summary provided [1] [2] [4].
6. What This Means for Workers and Retirees in Practical Terms
Practically, employees should expect the same percentage taken from paychecks for Social Security and Medicare in 2026, but higher‑earning workers will pay more in total dollars because a larger slice of their earnings becomes subject to the Social Security tax. Retirees should expect slightly larger monthly benefits because of the COLA, which may increase the fraction of benefits subject to federal income tax via the existing tiered tests. Proposed legislation could shift these burdens, but until a law passes, taxpayers should plan based on the unchanged rates and the reported higher taxable wage base [1] [3] [6].
7. Bottom Line — Stable Rates, Rising Base, Watch for Legislative Change
The authoritative picture from the assembled fact sheets and reporting is clear: tax rates themselves remain constant for 2026, but the taxable wage base increases, raising the maximum Social Security payroll tax paid by higher earners while keeping Medicare rates unchanged except for existing surtaxes on very high incomes. Concurrent financial adjustments, like the COLA and pending legislative proposals, can change net outcomes for individuals; taxpayers and payroll administrators should monitor official SSA releases and congressional action to confirm final dollar caps and any statutory changes before filing season [2] [6] [4].