economy
March 9, 2026
Million-dollar earners have already stopped paying into Social Security for 2026
The Social Security payroll tax is capped at $184,500 in 2026. Some high earners have already stopped paying into the program for the year.
TL;DR
- In 2026, Social Security payroll taxes only apply to earnings up to $184,500.
- Individuals earning $1 million annually stop paying into Social Security for the year before March.
- The Social Security trust fund for retirement benefits may run out in 2032, leading to a potential 24% benefit reduction if no action is taken.
- Raising the payroll tax cap is a proposed solution to address the funding shortfall, and research indicates it's a popular policy option.
- Opponents of raising the cap argue it would impact the upper-middle class and limit future tax revenue for other programs like Medicare.
- Earnings inequality has contributed to the shortfall, as the percentage of earnings subject to Social Security taxes has decreased since 1983.
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