The employee rates remain 6.2% for Social Security and 1.45% for Medicare under current law. SSA’s 2026 Trustees Report estimates a $198,900 Social Security wage base for 2028. Medicare has no corresponding wage cap.
Filing in 2028? That generally concerns 2027 income. This 2028 tax-year reference generally concerns returns filed in 2029.
Rates, caps and payroll thresholds
| Component | Rate or threshold | Status |
|---|---|---|
| Employee Social Security | 6.2% up to the annual wage base | Current law |
| Employer Social Security | 6.2% up to the annual wage base | Current law |
| Employee / employer Medicare | 1.45% each, without a wage cap | Current law |
| Social Security wage base | $198,900 | SSA 2028 estimate |
| Additional Medicare employee withholding | 0.9% on wages over $200,000 from one employer | Current law; no employer match |
The confirmed 2026 Social Security base is $184,500 and the maximum employee Social Security tax is $11,439.00. Those are baseline comparisons, not the 2028 operational cap. Employers must use the final 2028 publication when running actual payroll.
Worked example: $220,000 of annual wages
Using the SSA estimate, Social Security tax would stop at $12,331.80. Base Medicare tax on $220,000 is $3,190.00. An employer also withholds $180.00 of Additional Medicare tax on its wages over $200,000. Total employee withholding for those three components would be $15,701.80.
Additional Medicare withholding is not always final Additional Medicare liability. The return-level thresholds are $200,000 for Single/HOH, $250,000 for married joint and $125,000 for MFS. A spouse’s wages or self-employment income can change the final result even when one employer’s withholding calculation was correct.
Multiple employers and self-employment
Each unrelated employer generally withholds Social Security using its own wage record. A worker whose combined wages exceed the annual limit may need to claim excess employee Social Security withholding on the return. Do not instruct a second employer to stop withholding solely because a first employer has already reached the cap.
Self-employment tax uses separate rules, including a net-earnings adjustment and coordination with wages already subject to Social Security tax. It is not calculated by multiplying gross freelance receipts by the employee 7.65% rate. Review the applicable Schedule SE instructions and final wage base before estimating quarterly payments.
Method, assumptions and release timing
Use the 2028 wage-base row in Table V.C1 of the 2026 SSA Trustees Report, intermediate assumptions. This is wage-indexed, not the editorial 3% tax scenario. Multiply wages by statutory rates for the worked examples.
SSA normally announces the final 2028 wage base in October 2027.
Primary sources: 2026 Trustees Report, Table V.C1 — intermediate assumptions · Publication 15 — employer tax guide
Frequently asked questions
Is the $198,900 wage base final?
No. It is the SSA 2026 Trustees Report’s intermediate estimate for 2028. The final wage base is normally announced in October 2027.
Does Medicare stop at the Social Security wage base?
No. The base Medicare tax continues above the Social Security cap, and Additional Medicare tax can apply at higher income levels.
Does an employer match Additional Medicare tax?
No. The additional 0.9% is an employee tax; the employer pays its regular Medicare share.
Can I use these estimates to file or set a contribution limit?
No. These tables illustrate planning assumptions. Use the final agency publication and the rules for the applicable year before filing, funding an account or changing payroll. A linked calculator may use a different year.
Explore a related calculator
Take-home pay calculator. Check the calculator’s supported year and assumptions; it may use a different year from this planning reference.