The Social Security payroll tax cap rises from $184,500 to $192,300 in 2027. Update payroll setups and estimated tax plans before year-end.
Social Security wage base goes up
- The payroll tax cap moves from $184,500 to $192,300 in 2027, so more high-end wages face Social Security tax.
- Employers paying salaries above the old cap should update payroll systems before the first 2027 pay run.
- Self-employed owners with large net earnings will owe Social Security tax on more income next year.
- Benefits also get a 3.6% cost-of-living adjustment, according to the Social Security Administration.
Source: CPA Practice Advisor: Social Security’s Payroll Tax Cap is Going Up in 2027
IRS can take cards directly
- Final IRS rules let the agency accept credit and debit card tax payments itself, without routing taxpayers to outside processors.
- The rules implement Taxpayer First Act changes and lift limits on the IRS paying fees under card-payment contracts.
- Card payment terms could change, so check costs before charging your next tax bill.
Source: Federal Register: IRS: Rule: Regulations Regarding Payment of Tax by Commercially Acceptable Means
Dyed diesel penalties paused
- The IRS is suspending federal tax penalties for selling or using dyed diesel on highways nationwide for the rest of 2026.
- Trucking, farming and construction businesses gain temporary relief from a normally costly violation.
Source: CPA Practice Advisor: IRS Halts Penalties for Dyed Diesel Fuel Use for the Rest of 2026
Premium tax credit rules proposed
- Proposed IRS regulations would change premium tax credit eligibility, how the credit is computed, and repayment of excess advance credits.
- Freelancers buying Exchange health coverage should watch for changes that could affect their year-end tax bill.
Source: Federal Register: IRS: Proposed Rule: Premium Tax Credit