At what income thresholds will Social Security benefits be taxable in 2026 and have those thresholds changed?
Executive summary
The Social Security taxable wage base (the earnings cap subject to the 6.2% OASDI payroll tax) will be $184,500 in 2026, up from $176,100 in 2025, meaning the maximum employee Social Security tax rises to roughly $11,439 (6.2% × $184,500) for 2026 [1] [2] [3]. By contrast, the income thresholds that determine whether a portion of Social Security benefits is included in federal taxable income (the “combined income” bases such as $25,000 and $34,000) are not indexed for inflation and available sources do not mention any change to those benefit‑tax thresholds for 2026 [4].
1. Wage cap hike: high earners pay tax on more wages in 2026
The Social Security Administration set the 2026 OASDI taxable maximum at $184,500, an increase from the 2025 cap of $176,100; that means workers and employers each pay 6.2% on wages up to $184,500 and no Social Security tax on earnings above that level for 2026 [1] [5] [3]. Multiple outlets reported the same figure and calculated the practical effect: higher withholding for the relatively small share of workers who exceed the prior year’s cap, with the maximum employee OASDI withholding about $11,439 for 2026 [2] [3].
2. Why the cap rose: wage growth indexing and SSA rules
The taxable wage base is indexed to national wage trends and is updated annually by the SSA; the October 2025 announcement reflected wage growth that pushed the 2026 ceiling to $184,500 [1] [2]. Media coverage emphasizes that only about 6% of workers historically earn above the taxable maximum, so the practical impact is concentrated on higher earners [1].
3. Don’t confuse two different “thresholds”: payroll cap vs. benefit‑taxing bases
There are two separate concepts people often mix up: the payroll wage base (which determines how much of wages are subject to the 6.2% Social Security tax) and the IRS rules that determine when a portion of Social Security benefits becomes federally taxable. The payroll wage base increased to $184,500 for 2026 [1]; the long‑standing IRS “combined income” base amounts that trigger taxation of benefits (commonly quoted as $25,000 for single filers and $32,000 or $34,000 for married filers depending on the source) are not indexed to inflation and available sources do not report any 2026 change to those benefit‑tax thresholds [4].
4. Earnings test thresholds for beneficiaries also rose in 2026
Separate from taxation of benefits, the SSA raised the earnings‑test limits that can reduce benefits for people working before full retirement age: the annual exempt amount for beneficiaries under full retirement age increases to $24,480 in 2026 (from $23,400 in 2025), and the higher limit in the year you reach full retirement age is $65,160 in 2026 [6] [7] [8]. Those are distinct rules — they reduce current benefit payments when working income exceeds the limits, rather than changing how benefits are taxed on tax returns [6] [8].
5. What changed and what didn’t in 2026 (summary of impacts)
Changed: the Social Security wage base rose to $184,500 for 2026, raising maximum OASDI withholding and exposing somewhat more earnings to payroll tax for high earners [1] [2]. Also, earnings‑test thresholds that can trigger withholding of benefits increased for 2026 [6] [8]. Not changed (in reported sources): the fixed IRS base amounts used to determine whether Social Security benefits are included in taxable income are not reported as indexed for 2026 and sources note those thresholds remain fixed and therefore subject to “bracket creep” over time — available sources do not mention any 2026 statutory change to those benefit‑tax thresholds [4].
6. Competing coverage and a caution about projections
Most major financial outlets and tax analysts (AARP, CNBC, Kiplinger, Investopedia, SSA releases) converged on the $184,500 figure for 2026 and calculated the new maximum OASDI withholding accordingly [6] [1] [2] [9] [5]. A minority of earlier projections based on trustees’ intermediate forecasts had slightly different intermediate estimates (for example, some projections mentioned $183,300 or $183,600), but the final SSA announcement and broad reporting settled on $184,500 [10] [11] [2]. Reporters note that projections can change before the SSA issues final numbers, and that these adjustments reflect routine indexing rather than a policy change [11] [2].
Limitations: This analysis relies solely on the provided reporting and SSA fact sheets. If you need the exact IRS “combined income” base amounts used for benefit taxation in 2026 (how much of your benefits may be taxable on federal returns), consult IRS Publication 915 or the SSA directly; current provided sources discuss that those bases are fixed and do not indicate a 2026 update [4] [5].