MOVE · THRESHOLD TEST · NOTE 17

The 2026 Social Security wage-cap threshold

SSA's $184,500 taxable maximum creates a visible payroll-tax threshold that a relocation model must not smooth away.

DECISION READING

The threshold that changes the reading.

A salary increase above $184,500 no longer increases employee OASDI for 2026, while Medicare continues. MOVE needs a capped Social Security calculation and an uncapped Medicare layer rather than one flat payroll percentage.

REPRODUCIBLE WORK

Test both sides of the boundary.

01

$150K OASDI

$150,000 × 6.2%

$9,300
02

Cap-level OASDI

$184,500 × 6.2%

$11,439
03

$200K OASDI

min($200,000, $184,500) × 6.2%

$11,439
04

Medicare contrast

$200,000 × 1.45%

$2,900 before any Additional Medicare Tax

SENSITIVITY

Move the input and watch the boundary.

  • Multiple employers can over-withhold Social Security during the year.
  • Additional Medicare Tax has separate filing-status thresholds.
  • The taxable maximum changes annually.

INPUT AND EVIDENCE LEDGER

Values held constant for this test.

FieldValueOrigin
Employee OASDI rate6.2%SSA / IRS
2026 taxable maximum$184,500SSA
Employee Medicare rate1.45% with no wage capIRS
Wage cases$150K / $184.5K / $200KControlled comparison

SOURCE SNAPSHOT

Verify the sourced threshold and its scope.

HUMAN ACCOUNTABILITY + AI USE RECORD

The owner is accountable; the technical checks were AI-assisted.

The TOOOLBOX site owner authorized the publication scope and remains the correction contact. AI assistance was used for drafting, implementation, arithmetic recomputation, and source-link checks. This record does not claim line-by-line human fact-checking or licensed professional review.

Record ID
TB-MOVE-17-20260902
Owner role
TOOOLBOX site owner and developer
Technical check date
2026-09-02
Human fact-check
No separate human fact-check recorded
AI use
Drafting, code, arithmetic, and link checks
Correction channel
Public contact page
  1. Matched the cap and maximum contribution to SSA's published figures.
  2. Recomputed all three wage cases and the Medicare contrast.
  3. Separated employee, employer, and self-employment treatment.

BOUNDARIES

What the threshold does not decide.

  • Only employee payroll tax is illustrated.
  • Self-employment uses different combined rates and deductions.
  • The page does not calculate a full tax return.

MORE MOVE DECISION NOTES

Test the result yourself.

This note preserves a dated calculation. Change the inputs in the live workspace, or compare another evidence pattern below. Live source availability and results can differ from the dated example.