USA: Social Security 2027 Wage Base Rises to $192,300 and COLA Set at 3.6% - SSA Announcement 14 October 2026

The Social Security Administration announced on 14 October 2026 that the 2027 OASDI taxable wage base will increase to $192,300, up from $184,500. The Social Security cost-of-living adjustment (COLA) will be 3.6%, while the maximum OASDI tax per employee will rise to $11,922.60, with an equal amount payable by the employer.

Effective Date

• 1 January 2027

Published

• Social Security Administration – Press release, 14 October 2026

Payroll action

• Update payroll systems to apply the $192,300 OASDI taxable wage base effective 1 January 2027.
• Recalculate employer FICA budgets for employees earning above the 2026 wage base, accounting for a maximum additional employer OASDI cost of $483.60 per employee.
• Verify that the 6.2% employee and employer OASDI contributions stop once the applicable annual taxable wage base is reached.
• Confirm that Medicare tax calculations remain at 1.45% for employees and employers, with no wage cap.
• Verify Additional Medicare Tax withholding of 0.9% on employee wages exceeding $200,000.
• Notify affected high-earning employees about the impact of the higher OASDI wage base on their payroll deductions.
• Review year-to-date OASDI tracking for mid-year hires and terminations to ensure accurate contribution calculations.
• Complete the 2026 year-end OASDI reconciliation using the $184,500 wage base before transitioning payroll systems to the 2027 limit.

Social Security Administration