Social Security Wage Base Update

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The wage base limit is the maximum wage that’s subject to Social Security tax for that year. In 2025, the Social Security Wage base was $176,100 and is increasing to $184,500 for 2026. The Social Security Tax Rate is unchanged at 6.2% Employee Share and 6.2% Employer Share.

Medicare is also unchanged, at 1.45% with no wage base cap, and an additional 0.9% on all taxable wages over $200,000 ($250,000 for married taxpayers filing jointly and $125,000 for married taxpayers filing separately).

Most payroll software makes these wage base updates automatically, so make sure your software is up to date!  If you have any questions or concerns and would like to speak to a BMSS Professional, please call (833) CPA-BMSS or visit our website for contact details.

About BMSS

BMSS Advisors & CPAs was established in 1991 with the vision of creating a CPA firm that would provide peace of mind for its clients while sustaining a healthy, happy culture for its employees. As this dream has been realized, BMSS has grown to become one of the Southeast’s top advisory and accounting firms, now with eight offices throughout Alabama and Mississippi.

The CPA firm specializes in several industries, including (but not limited to) manufacturing, wholesale distribution, construction, technology, nonprofit, and government contracting. In addition to tax planning, compliance and assurance services, the firm boasts a robust business advisory practice area which includes transaction advisory, valuation, client accounting solutions, and CFO advisory services. BMSS also specializes in state and local tax, estate planning and employee benefit plan audits.

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