The Social Security wage base, the maximum amount of pay subject to Social Security tax, will rise from $184,500 in 2026 to $192,300 in 2027. The Social Security Administration published the new figure with the 2027 cost-of-living announcement.
What it means for most service members
Almost nothing. Social Security tax is 6.2% of basic pay, and Medicare tax is 1.45%. Both are taken from basic pay only, never from BAH or BAS. Only members whose yearly basic pay is above the cap stop paying Social Security tax partway through the year. For nearly everyone in uniform, the full 6.2% comes out of every paycheck in both years, and the change makes no difference.
To pass $192,300 in basic pay, you would need monthly basic pay above about $16,025. In the 2026 pay table, only general and flag officers reach that level.
Who pays more
For the highest-paid officers, the higher cap means a little more Social Security tax:
- Maximum Social Security tax in 2026: $11,439.00
- Maximum Social Security tax in 2027: $11,922.60
That is up to $483.60 more over the year. Medicare tax has no cap, so it applies to all basic pay at every rank.
Retirees who work
The same announcement raised the earnings limit for Social Security retirement benefits. Military retirees who also draw Social Security before full retirement age should check the new limit, because earnings above it reduce benefits temporarily. Military retired pay does not count as earnings for this test.
Benefits rise too
The 2027 Social Security COLA is 3.6%, effective with January 2027 benefits. Military retired pay and, once Congress acts, VA disability compensation rise by the same 3.6%, effective December 1, 2026.