2019 Social Security Wage Base
For 2019, the Social Security Wage Base is $132,900 (Wage base limit) and 6.2% (Employee social security tax rate).
Effective 2019-01-01Source: Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)Verified 2026-08-29
Compared with 2018
| Item | 2018 | 2019 | Change |
|---|---|---|---|
| Wage base limit | $128,400 | $132,900 | +$4,500 (+3.5%) |
| Employee social security tax rate | 6.2% | 6.2% | +0% (+0.0%) |
Who it applies to
Employers and employees subject to Federal Insurance Contributions Act (FICA) taxes, and self-employed individuals subject to Self-Employment Contributions Act (SECA) taxes
What changed this year, and why
The Social Security wage base limit for 2019 is $132,900, up from $128,400 in 2018. The employee tax rate remains 6.2%.
Common questions
- What is the Social Security wage base limit?
- The Social Security wage base limit is the maximum amount of wages subject to the Social Security tax for the year. Wages earned above this limit are not taxed for Social Security.
- How much Social Security tax does an employee pay?
- The employee Social Security tax rate is 6.2%. The employer pays an equal share.
- Does the wage base limit also apply to Medicare tax?
- No. Only the Social Security tax has a wage base limit. Medicare tax applies to all covered wages with no limit.
Only social security has a wage base
For 2019, social security tax is imposed only on wages up to $132,900 per employee. Medicare tax, by contrast, applies to all covered wages with no upper cap. The employee rate for social security is 6.2%, and the employer matches that 6.2%. Because only social security has a wage base limit, once an employee's cumulative wages for the year pass $132,900, no further social security tax is withheld or owed on additional pay, while Medicare tax continues to apply on every dollar. Employers should track each employee's year-to-date wages so they stop withholding social security tax at the correct point. If too much is withheld, the excess is reported on the employee's Form W-2 and claimed as a credit against income tax on the employee's return; the employer cannot simply keep the over-withheld amount.
Social security and Medicare taxes have different rates and only the social security tax has a wage base limit.
Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)
An acquisition does not restart the limit
When a corporate acquisition meets certain requirements, wages that the predecessor employer already paid to transferred employees are treated as though the new employer paid them. This applies for purposes of the social security wage base. In practice, the successor does not start the wage base over at zero. Wages earned with the prior owner count toward the $132,900 limit for 2019. Once the combined total reaches $132,900, no further social security tax applies for the rest of the calendar year, even though the employee is now on the successor's payroll. The employee rate for social security is 6.2%, and the employer matches that 6.2%. Without this rule, an employee who switched employers mid-year could end up paying social security tax on wages above the limit twice. The successor employer rule also applies to the Additional Medicare Tax withholding threshold of $200,000 in a calendar year.
Successor employer. When corporate acquisitions meet certain requirements, wages paid by the predeces- sor are treated as if paid by the successor for purposes of applying the social security wage base and for applying the Additional Medicare Tax withholding threshold (that is, $200,000 in a calendar year).
Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)
When the employer pays the employee's share
When an employer pays the employee's share of social security and Medicare taxes without deducting them from wages, those employer payments are themselves treated as wages subject to social security and Medicare taxes. This means the amounts the employer pays on behalf of the employee are included in the employee's total wages for the year. The employee social security tax rate is 6.2%, and the employer matches that 6.2%. These wages are counted toward the wage base limit of $132,900 for 2019. Once the total wages, including the amounts the employer paid as the employee's share, reach $132,900, no further social security tax applies for the rest of the calendar year. Medicare tax, by contrast, applies to all covered wages with no wage base limit. The employer must still determine withholding for social security and Medicare taxes by multiplying each payment by the employee tax rate, and there are no withholding allowances for these taxes.
Social security and Medicare taxes have different rates and only the social security tax has a wage base limit. The wage base limit is the maximum wage subject to the tax for the year.
Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)
Household employers
For household employees performing domestic service in a private home, the employer must withhold and pay social security and Medicare taxes when cash wages reach a certain threshold. For 2019, social security and Medicare taxes apply if the employer pays total cash wages of $2,100 or more in cash to a household employee during the year. The employee social security tax rate is 6.2%, and the employer matches that 6.2%. These taxes apply only up to the wage base limit of $132,900 for the year. Once wages exceed that amount, no further social security tax applies for the rest of the calendar year. However, social security tax does not apply to wages paid to a household employee who is under age 18 during any portion of the calendar year if household work is not the employee's principal occupation. Medicare tax, by contrast, applies to all covered wages with no wage base limit and no age-based exclusion. The employer must determine the amount of withholding by multiplying each payment by the employee tax rate.
Household employees: 1. Domestic service in private homes. Farmers, see Pub. 51. Exempt (withhold if both employer and employee agree). Taxable if paid $2,100 or more in cash in 2019.
Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)
Who counts as an employee
Under common law, a worker who performs services for an employer is generally considered an employee if the employer has the right to control what will be done and how it will be done. This control test applies even when the employer gives the worker freedom of action in carrying out the tasks. The key factor is not how the relationship is labeled or how payments are measured, but whether the employer has the right to direct the details of how the services are performed. People who are in business for themselves, such as doctors, lawyers, or veterinarians offering their services to the public, are usually not employees under common law. However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. For social security and Medicare tax purposes, the employee social security tax rate is 6.2%, and the employer matches that 6.2%. These taxes apply to wages up to the wage base limit of $132,900 for 2019. Once wages exceed that amount, no further social security tax applies for the rest of the calendar year.
Employee status under common law. Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done.
Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Publication 15 (2019), (Circular E), Employer's Tax Guide (IRS)
- Wage base limit
For 2019, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% to- tal). The social security wage base limit is $132,900.
- Employee social security tax rate
For 2019, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% to- tal).