[US] Nation’s highest earners have already stopped paying into Social Security for 2026

In the US in 2026, earnings up to $184,500 are subject to Social Security payroll taxes. But by March 9, individuals with $1 million in annual wage and salary earnings had already stopped paying into the program for this calendar year, CNBC reports.

The stats, from the Center for Economic and Policy Research, revealed that wealthier individuals stop paying into the program even sooner. And, according to an estimate from labour economist Teresa Ghilarducci, Elon Musk may have paid all of his Social Security taxes for the year on New Year’s Day, depending on how his income is taxed.

Amid calls for higher taxes on the rich and a pending Social Security funding shortfall, some advocates and lawmakers are reportedly pushing to raise the payroll tax cap so that higher earners are forced to contribute more to the program.

In the future, Social Security may not be able to pay benefits as intended, Hayley Brown - a labour and disability researcher at the Center for Economic and Policy Research think tank - said.

“Meanwhile, we have people who are capable of paying into the system throughout the year who stop before three months of the year have gone by,” she said.

The Social Security Administration is facing looming depletion dates for the trust funds it uses to help make monthly payments to millions of beneficiaries.

Money continues to come into the program through payroll taxes, so benefits will not run out entirely, but the latest projections from the Social Security Administration’s actuaries suggest that the trust fund the program relies on to pay retirement benefits may run out in 2032, when monthly payments would be reduced by 24 per cent unless Congress takes action to address the shortfall.

Raising the Social Security payroll tax cap is one of the potential options under consideration for lawmakers.

Research has revealed that this is a popular choice among consumers. Raising the payroll tax cap to incorporate earnings over $400,000, while not increasing benefits for those extra contributions, was the most popular of all the policy options, according to a 2025 survey from the National Academy of Social Insurance, AARP, National Institute on Retirement Security and U.S. Chamber of Commerce.

Other popular choices the research identified were gradually raising the payroll tax rate from 6.2 per cent to 7.2 per cent and keeping age 67 as the full retirement age.

Source: CNBC

(Links and quote via original reporting)

In the US in 2026, earnings up to $184,500 are subject to Social Security payroll taxes. But by March 9, individuals with $1 million in annual wage and salary earnings had already stopped paying into the program for this calendar year, CNBC reports.

The stats, from the Center for Economic and Policy Research, revealed that wealthier individuals stop paying into the program even sooner. And, according to an estimate from labour economist Teresa Ghilarducci, Elon Musk may have paid all of his Social Security taxes for the year on New Year’s Day, depending on how his income is taxed.

Amid calls for higher taxes on the rich and a pending Social Security funding shortfall, some advocates and lawmakers are reportedly pushing to raise the payroll tax cap so that higher earners are forced to contribute more to the program.

In the future, Social Security may not be able to pay benefits as intended, Hayley Brown - a labour and disability researcher at the Center for Economic and Policy Research think tank - said.

“Meanwhile, we have people who are capable of paying into the system throughout the year who stop before three months of the year have gone by,” she said.

The Social Security Administration is facing looming depletion dates for the trust funds it uses to help make monthly payments to millions of beneficiaries.

Money continues to come into the program through payroll taxes, so benefits will not run out entirely, but the latest projections from the Social Security Administration’s actuaries suggest that the trust fund the program relies on to pay retirement benefits may run out in 2032, when monthly payments would be reduced by 24 per cent unless Congress takes action to address the shortfall.

Raising the Social Security payroll tax cap is one of the potential options under consideration for lawmakers.

Research has revealed that this is a popular choice among consumers. Raising the payroll tax cap to incorporate earnings over $400,000, while not increasing benefits for those extra contributions, was the most popular of all the policy options, according to a 2025 survey from the National Academy of Social Insurance, AARP, National Institute on Retirement Security and U.S. Chamber of Commerce.

Other popular choices the research identified were gradually raising the payroll tax rate from 6.2 per cent to 7.2 per cent and keeping age 67 as the full retirement age.

Source: CNBC

(Links and quote via original reporting)