What Are Your 2026 Payroll Taxes?

2026 Social Security Tax

As usual the wage base for the 6.2% Social Security tax increased. (FYI: The 1.45% Medicare tax is imposed on all wages) 

The 2026 Social Security wage base will be $184,500, which is an increase of $8,400 from $176,100 in 2025. 

The maximum Social Security tax employees and employers will each pay in is $11,439, an increase of $520.80 from the 2025 maximum.

2026 California State Disability Insurance (SDI)

 The 2026 California  SDI rate increased to 1.3%, up from 1.2% in 2025, funding both Disability Insurance (DI) and Paid Family Leave (PFL) benefits. There is no wage cap on contributions, meaning all wages are subject to the tax.