Last updated: October 2026
2027 Payroll Tax Rates: Wage Base, FICA and FUTA
The 2027 Social Security wage base is $192,300, up $7,800 from $184,500 in 2026.
This page covers 2027. For 2026 payroll, including year-end work on 2026 wages, see the 2026 payroll tax rates.
The 2027 Social Security Wage Base
For 2027, Social Security tax applies at 6.2% to each employee’s wages up to $192,300, and the employer pays a matching 6.2% on the same wages.
The 2027 maximum Social Security tax per employee is 6.2% times $192,300, or $11,922.60, and the employer owes the same amount.
That is $483.60 more than in 2026, which is 6.2% times the $7,800 rise in the base.
FICA Rates for 2027
The 2027 Medicare tax is 1.45% for the employee and 1.45% for the employer, with no wage limit. Below the 2027 wage base, the employee and the employer each pay 7.65%. Combined, that is 15.3% of wages up to $192,300. Above $192,300 in 2027, only Medicare continues, at 1.45% each for the employee and the employer, or 2.9% combined. Section 3101 of the tax code sets the employee rates, and the Social Security Administration lists the same 2027 rates for employers.
The Additional Medicare Tax in 2027
For 2027, the 0.9% Additional Medicare tax applies to wages above $200,000, or above $250,000 on a joint return.
For a married person filing separately, the threshold is $125,000.
IRS Publication 15 for 2026 tells employers to withhold the 0.9% from wages paid to an employee above $200,000 in a calendar year.
FUTA for 2027
The FUTA tax rate is 6.0% of each employee’s first $7,000 of wages in 2027, under sections 3301 and 3306 of the tax code.
Credits for state unemployment tax can reduce it by up to 90% of the tax, which is 90% times 6.0%, or 5.4% of wages. With the full credit, the net 2027 rate is 0.6%, which is $42 per employee on $7,000 of wages.
When a state has outstanding federal unemployment loans, its employers can receive a smaller credit, which raises their FUTA cost for that year.
Before the First 2027 Payroll
Confirm that your payroll system uses the 2027 Social Security wage base of $192,300 before the first paycheck dated in 2027. Then review the Form 941 guide for the quarterly return that reports these taxes, and the payroll tax hub for the other federal filings.
Frequently asked questions
What is the Social Security wage base for 2027?
The Social Security wage base for 2027 is $192,300. The employee and the employer each pay 6.2% on wages up to that amount. The most an employee pays in 2027 is $11,922.60, and the employer pays the same.
Did the payroll tax rates change for 2027?
No. The 2027 rates are 6.2% for Social Security and 1.45% for Medicare, each for the employee and the employer. What rose for 2027 is the Social Security wage base, from $184,500 to $192,300.
What is the FUTA rate for 2027?
The FUTA rate is 6.0% of the first $7,000 of each employee's wages in 2027. With the full credit for state unemployment tax of up to 5.4%, the net rate is 0.6%, or $42 per employee.
This is not legal or financial advice. Consult a qualified professional for your specific situation.