Social Security Earnings Cap: How Much Counts Toward Benefits?
Published: 11/28/2020
Key Facts
- 2026 earnings cap: $184,500 — the maximum income subject to Social Security tax
- Earnings above the cap — not taxed for Social Security and don't count toward benefits
- Adjusted annually — the cap increases each year based on national wage growth
- Applies to both tax and benefits — same limit for what you pay in and what counts toward your benefit
What Is the Social Security Earnings Cap?
There is an annual limit on the amount of personal earnings subject to payroll (Social Security) tax. Above that amount, payroll taxes are no longer applied to your earnings. This same limit determines how much of your earnings count toward your benefit calculation.
In 2026, this limit is $184,500. Earnings above that amount are not subject to the 6.2% Social Security payroll tax and do not affect your PIA or AIME.
Example
If you earn $200,000 in 2026, only $184,500 is subject to Social Security tax. You pay 6.2% on $184,500, and the remaining $15,500 is not taxed for Social Security (though it is still subject to Medicare tax, which has no cap).
How Is the Cap Determined?
The cap is updated every year to keep pace with wage growth, using the National Average Wage Index (AWI):
Where $60,600 was the cap in 1994 and $22,935.42 was the AWI in 1992.
Why X − 2? The AWI for any given year isn't published until the following fall. Since the cap for year X must be announced in the fall of year X − 1, the most recent finalized AWI available is from year X − 2.
The cap for years 1937–1974 and 1979–1981 was set by statute. For all other years, it's calculated automatically as specified by the Social Security Act.
SSA.tools
Free Calculator
SSA.tools Free Calculator
See how this applies to your benefits. Use the free SSA.tools calculator with your actual earnings record for personalized results.
- Copy & paste: Import your earnings record directly from SSA.gov in seconds.
- What-if scenarios: Explore how different filing ages and future earnings affect your benefit.
- 100% private: Your data never leaves your browser — nothing is stored or transmitted.
Earnings Cap by Year
The following table shows the earnings cap for every year since 1937:
Related Guides
- AIME Guide — Learn how capped earnings are averaged to calculate your monthly indexed earnings
- PIA Guide — See how your AIME is converted to your Primary Insurance Amount using the bendpoint formula
- Maximum Benefit — Discover what it takes to reach the maximum Social Security benefit by earning at the cap for 35 years
- Work Credits — Understand how earnings also count toward the 40 credits needed to qualify for benefits
Use the SSA.tools calculator to see exactly how your earnings—subject to each year's cap—affect your benefit amount.
Additional Resources
- Contribution and Benefit Base [ssa.gov]
- Contribution and Benefit Base Determination [ssa.gov]
- Average Wage Index since 1951 [ssa.gov]