High-income earners will face higher Social Security taxes in 2026, with the wage base rising from $176,100 to $184,500. This means a maximum total contribution of $11,439, with any income beyond $184,500 exempt from Social Security taxes but subject to Medicare taxes.

The tax rate remains unchanged, but the wage base increase will result in about a $520 extra tax for employees earning at or above the cap, with employers matching that amount. Self-employed individuals will pay $22,878 total in Social Security taxes next year.

The cost-of-living adjustment for benefits will rise 2.8% in 2026, reflecting inflation. However, paying more in Social Security taxes does not equate to higher retirement benefits. The program’s formula replaces a larger share of income for low-wage workers and a smaller share for high earners.

You can’t opt out of Social Security taxes, but you can plan smarter by maxing out retirement contributions and investing in taxable accounts to lower overall tax exposure. The wage base rises annually to keep pace with wage growth, with further adjustments likely to address Social Security’s funding shortfall.

High earners should review their 2026 income projection with a tax advisor to manage the impact of the Social Security tax changes. While the increase in 2026 is routine, long-term trajectory points toward higher taxes on high earners in the future.

Read more at Yahoo Finance: What High-Income Earners Need To Know