Payroll tax rates
Social Security, Medicare, and federal unemployment (FUTA) rates that employers use on payroll, plus the 2026 Social Security wage base, the 2026 FUTA credit-reduction list, Form 940 due dates, the $500 FUTA deposit rule, and New York’s 2026 unemployment insurance wage base.
This is general information, not tax or legal advice — talk with your tax advisor about your own situation.
Social Security and Medicare
The Social Security tax rate for employees and employers remains 6.2 percent each. The Social Security Administration has published the 2026 contribution and benefit base — the wage base on which Social Security tax is assessed — as $184,500. Wages above that amount in 2026 are not subject to the 6.2 percent Social Security tax. For 2027, the Social Security Administration has published the contribution and benefit base as $192,300. At the 6.2 percent employee and employer rate, the most an employee pays in Social Security tax in 2027 is $11,922.60.
The Medicare tax rate is 1.45 percent each for the employee and the employer, with no wage base. An Additional Medicare Tax of 0.9 percent applies to wages an employee receives in excess of a threshold based on filing status. The employer must withhold that additional 0.9 percent from wages it pays to an individual in excess of $200,000 in a calendar year, without regard to the individual’s filing status or wages paid by another employer. An individual may owe more than the amount withheld, depending on filing status and combined wages.
The Additional Medicare Tax thresholds on the employee’s return are:
- $250,000 for married filing jointly.
- $125,000 for married filing separately.
- $200,000 for single, head of household (with qualifying person), and qualifying widow(er) with dependent child.
The employer does not match the Additional Medicare Tax. The 1.45 percent employer Medicare tax continues to apply to all wages.
Sources: IRS, Publication 15 (2026), Employer’s Tax Guide; SSA, Automatic Determinations — contribution and benefit base; SSA, What is the Social Security wage base for the current and previous years? (January 2, 2026); IRS, Questions and Answers for the Additional Medicare Tax.
Federal unemploymentFUTA rate, wage base, credit reduction, and Form 940
The Federal Unemployment Tax Act (FUTA) tax is 6.0 percent on the first $7,000 of wages you pay to each employee in a calendar year. Employers generally receive a credit of up to 5.4 percent for timely payments of state unemployment tax, which can bring the net FUTA rate to 0.6 percent. IRS Tax Topic 759 describes this structure.
A credit reduction can reduce that 5.4 percent credit for employers in states that have outstanding federal unemployment loans. The Department of Labor’s final 2026 FUTA credit-reduction list, updated November 10, 2026, names California only, at a 1.5 percent credit reduction. New York is not on that 2026 list. The U.S. Virgin Islands appears on the file as having repaid its outstanding advances, with a final credit reduction of 0 percent. Confirm the current list on the Department of Labor site before you file Form 940, because the list can change from year to year.
Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, is due by January 31. If you deposited all FUTA tax when it was due, you may file Form 940 by February 10. For deposits, Topic 759 states that if your FUTA tax liability is more than $500 for the calendar year, you must deposit at least one quarterly payment. If your liability is $500 or less in a quarter, you carry it forward until the cumulative amount is more than $500, and then deposit for that quarter. If the fourth-quarter liability plus any undeposited amounts from earlier quarters is $500 or less, you may deposit the amount or pay it with Form 940 by January 31. Follow the current IRS instructions for the year you are filing.
Sources: IRS, Tax Topic 759, Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return — Filing and Deposit Requirements; U.S. Department of Labor, FUTA Credit Reductions (final 2026 list updated November 10, 2026).
New York unemployment insurance2026 New York unemployment insurance wage base
New York State unemployment insurance contributions are assessed on wages up to a state wage base. The New York State Department of Labor’s unemployment insurance filing page lists the current rate (2026) wage base as $17,600. The department’s historical wage-base archive lists the same $17,600 figure for 2026.
Your contribution rate is assigned by the Department of Labor and is not the same for every employer. This page lists only the 2026 wage base, not a sample rate. Confirm your rate on the official NY DOL notice or account you receive.
Sources: New York State Department of Labor, Unemployment Insurance filing; NY DOL, historical wage-base archive.
How PayNortheast handles payroll taxes
PayNortheast calculates, withholds, deposits, and files federal, New York, and local payroll taxes, including Social Security, Medicare, FUTA, and New York unemployment insurance. A real person reviews every payroll, and year-end W-2 and 1099 filing is included. See full service payroll and New York payroll.
- Federal, New York State, and local payroll taxes calculated, deposited, and filed.
- Year-end W-2 and 1099 filing, with a real person reviewing every payroll.
- A dedicated account manager who knows New York payroll.
Questions employers ask
What are the 2026 and 2027 Social Security wage bases?
The Social Security Administration has published the 2026 contribution and benefit base as $184,500 and the 2027 base as $192,300. The tax rate remains 6.2 percent each for the employee and the employer, on wages up to that amount. In 2027, the most an employee pays is $11,922.60.
When is Form 940 due, and when do I have to deposit FUTA tax?
Form 940 is due by January 31, or by February 10 if you deposited all FUTA tax when it was due. If FUTA tax liability is more than $500 for the calendar year, you must deposit at least one quarterly payment. If the fourth-quarter liability plus any undeposited amounts is $500 or less, you may deposit it or pay it with Form 940 by January 31.
Is New York on the 2026 FUTA credit-reduction list?
No. The Department of Labor’s final 2026 list, updated November 10, 2026, names California only, at a 1.5 percent credit reduction. New York is not on that list. Re-check the official list before you file.
Official sources for this page
Every figure and rule on this page comes from the sources below, opened November 13, 2026, with the 2027 Social Security wage base confirmed November 15, 2026. Re-check them when a new official publication is posted.
- IRS, Publication 15 (2026), Employer’s Tax Guide — Social Security tax of 6.2 percent each for the employer and employee, 2026 wage base limit of $184,500, and Medicare tax of 1.45 percent each, with no wage base.
- Social Security Administration, Automatic Determinations — contribution and benefit base — 2026 contribution and benefit base of $184,500; contribution and benefit base table — 2027 contribution and benefit base of $192,300.
- SSA, What is the Social Security wage base for the current and previous years?, dated January 2, 2026.
- IRS, Questions and Answers for the Additional Medicare Tax — 1.45 percent Medicare tax, 0.9 percent Additional Medicare Tax, and the $200,000 / $250,000 / $125,000 thresholds.
- IRS, Tax Topic 759 — FUTA 6.0 percent, 5.4 percent credit, $7,000 wage base, Form 940 due dates, and the $500 deposit rule.
- U.S. Department of Labor, FUTA Credit Reductions — final 2026 list updated November 10, 2026, California 1.5 percent only.
- New York State Department of Labor, Unemployment Insurance filing and the historical wage-base archive — 2026 wage base of $17,600.
Last updated November 15, 2026. This page does not replace advice from your tax advisor or employment attorney.