2027 FICA Wage Base Announced
10.14.2026 | The new FICA wage base for 2027 has been announced. The threshold will increase from $184,500 to $192,300 in 2027, an increase of 4.2%.
The OASDI rate of 6.2%, as well as the Medicare threshold and rates, will remain the same. Meanwhile, the Social Security benefits will increase by 3.6% in 2027.
On January 1, 2027, payroll departments and payroll companies must begin using the new base to calculate FICA withholdings and gross-ups. For more information, see the SSA’s 2027 COLA Fact Sheet at https://www.ssa.gov/news/en/cola/factsheets/2027.html and the SSA announcement at https://www.ssa.gov/news/en/press/releases/2026-10-14.html
Key 2027 Figures
What This Means for Relocation Gross-Ups
Taxable relocation benefits are wages subject to FICA, so the wage base directly affects how much tax assistance an employee needs. An employee who has already earned past the $184,500 limit in 2026 owes no further OASDI tax this year. A gross-up that applies the full 6.2% to all their relocation payments overpays.
Timing matters as well. A relocation payment made in December 2026 to an employee above the limit carries no OASDI. The same payment made in January 2027 falls under the new year’s wage base and does carry OASDI.
Frequently Asked Questions
What is the Social Security wage base for 2027?
The 2027 Social Security wage base is $192,300, up from $184,500 in 2026. Earnings above this amount are not subject to the 6.2% OASDI tax.
Does the Social Security wage base apply to Medicare tax?
No. The 1.45% Medicare tax applies to all covered wages with no limit. An additional 0.9% Medicare tax is withheld from employee wages above $200,000.
How does the wage base affect relocation tax gross-ups?
Relocation benefits are taxable wages subject to FICA. If an employee has already reached the annual wage base, no further OASDI tax is due that year. A gross-up that applies the full 6.2% will overpay.
