The Social Security Administration (SSA) has announced that the 2026 Social Security wage base will be $184,500, an increase of $8,400 from the 2025 wage base of $176,100. The FICA tax rate will remain the same at 6.2% for the employee portion to match with the employer portion. The maximum Social Security tax that employees and employers will each pay in 2026 is $11,439.00. This is an increase of $520.80 from the 2025 maximum tax of $10,918.20.
There is no limit to wages subject to the Medicare Tax. All covered wages are still subject to the tax at 1.45%. When an employee reaches $200,000 an additional .9% of Medicare Tax will be withheld for the employee portion only. For State and Local Wage and Tax Information, please use this link.
If you have questions or require additional information, please contact the Penn Employee Solution Center at (215) 898-7372 or solutioncenter@upenn.edu.
2026 Tax Rates & Benefit Limitations
FICA Tax Rate
Employee: 6.2%
Employer: 6.2%
FICA Wage Base Limit: $184,500
Medicare Tax Rate
Employee: 1.45%
Employer: 1.45%
Employee Supplemental on wages over $200,000: 0.90%
Pennsylvania State Tax Rate
3.07%
Philadelphia City Wage Tax Rates
Resident:
July 1, 2025: 3.74%
Non-Resident:
July 1, 2025: 3.43%