The Social Security Administration announced a 2.8% boost to monthly Social Security and Supplemental Security Income (SSI) benefits for 2026. That is a rate drop from last year’s 3.2% increase. The increase is based on the Consumer Price Index for the twelve months ending in September 2024.

For those contributing to Social Security through wages, the potential maximum income subject to Social Security taxes is increasing to $184,500. This represents a 4.8% increase in your Social Security taxes! What’s of interest here is the continued practice of raising the income subject to Social Security well beyond the annual Consumer Price Index. Here’s a recap of the key dollar amounts.

2026 Social Security benefits

What it means for you

• Up to $184,500 in wages will be subject to Social Security taxes, an increase of $8,400 from 2025. This amounts to a maximum annual employee Social Security payment of $14,114.25 (an increase of $643), so plan accordingly. You can claim a credit on your tax return for any excess Social Security taxes you paid due to having multiple employers.
• For all retired workers receiving Social Security retirement benefits, the estimated average monthly benefit will be $2,071 in 2026, an increase of $56 per month.
• SSI is the standard payment for people in need. To qualify for this payment, you must have little income and few resources ($2,000 if single, $3,000 if married).
• A full-time student who is blind or disabled can still receive SSI benefits. However, their earned income must not exceed the monthly and annual student exclusion amounts listed above.

Social Security & Medicare Rates

The Social Security and Medicare tax rates do not change from 2025 to 2026. The rates are 6.2% for Social Security and 1.45% for Medicare. There is also a 0.9% Medicare wages surtax for single taxpayers with wages above $200,000 ($250,000 for joint filers) that is not reflected in these figures. Please note that your employer also pays a 6.2% Social Security tax and a 1.45% Medicare tax on your behalf. The 15.3% self-employment tax rate reflects these amounts, as self-employed individuals pay both halves of the tax.

Contact our RRBB advisors for more information or if you have any questions.