Social Security earnings base rises to $192,300 for 2027 from $184,500, SSA notice shows

The Social Security Administration (SSA) set the maximum earnings subject to Social Security (OASDI) taxes at $192,300 for 2027, up 4.2% from $184,500 in 2026, according to a notice in the Federal Register's October 26 issue.

What happened

The OASDI contribution and benefit base will be $192,300 for earnings paid in 2027 and self-employment income earned in tax years beginning in 2027, the SSA said. The base is the maximum annual earnings on which OASDI taxes are paid and the maximum used in determining a person's benefits. The increase from $184,500 is $7,800, or 4.2%.

The notice also sets the limits of the retirement earnings test, which withholds benefits from people who claim before normal retirement age (NRA) and keep working. For 2027 the lower monthly exempt amount is $2,130, or $25,560 a year, up from $2,040. A higher amount of $5,660 a month, or $67,920 a year, up from $5,430, applies in the year a person reaches NRA, for months before that age.

The SSA withholds $1 in benefits for every $3 of earnings above the annual limit for beneficiaries who reach NRA in the year, and $1 for every $2 for other beneficiaries under NRA.

Other 2027 amounts in the notice:

Item	2026	2027
Earnings base for OASDI taxes	$184,500	$192,300
Earnings for one quarter of coverage	$1,890	$1,970
Maximum monthly SSI payment, individual	$994	$1,029
Maximum monthly SSI payment, individual with an eligible spouse	$1,491	$1,544

Source: SSA notice, Federal Register, October 26, 2026.

The monthly earnings that count as substantial gainful activity, a test for disability benefits, are $1,770 for non-blind people with a determined disability and $2,950 for statutorily blind people in 2027.

The notice sets the dollar amounts, known as bend points, used in the primary insurance amount formula at $1,340 and $8,077 for workers who become eligible for benefits, or who die before becoming eligible, in 2027. The SSA also set the earnings threshold for a month to count as part of a trial work period for people with disabilities at $1,270, and the SSI student earned income exclusion at $2,500 a month, up to $10,080 for the year.

Why it matters

The base is set by a formula tied to the national average wage index. The SSA put the index for 2025 at $72,800.33, about 4.23% higher than the 2024 index of $69,846.57. Applying the formula to the 2025 index produced $192,353.14, which the SSA rounded to $192,300.

The notice also confirms the 3.6% cost-of-living increase in benefits, as FinanceInTime reported after the SSA announced it on October 14. OASDI benefits rise 3.6% for people eligible for December 2026 benefits, payable in January 2027.

What to watch

Federal SSI rates rise 3.6% for payments for January 2027, which the notice says will be paid on December 31, 2026.