# What Would a Social Security Payroll Tax Hike Cost Workers? | New Cato Analysis 

As Congress confronts Social Security’s financing shortfall, some Republicans are becoming more open to raising Social Security taxes to shore up the program.

September 17, 2026 • News Releases 

As Congress confronts Social Security’s financing shortfall, some Republicans are becoming more open to raising Social Security taxes to shore up the program.

In [**new analysis**](https://url.avanan.click/v2/r01/___https://zwly9k6z.r.us-east-1.awstrack.me/L0/https:*2F*2Fwww.cato.org*2Fblog*2Fwhat-would-social-security-payroll-tax-hike-cost-you/1/010001a0af8f9f11-858640e9-47bf-4111-8c1b-43408e6b642b-000000/zEvKpLfipAr9Y1At2feLZjCEG08=473___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjRmODZjNmUzNmZmMTBlMjM3MjRiM2YxMjNjZjQxNTgwOjc6ZThlYjo2ZjQ1ZDc3NTZiNDkyMTNjOWRjODI1OTBjMmQ1NGE3ODljZWUwOTNhYTYwNThkZWU3N2YzZmYyNTE3MmE4ZTU5Omg6VDpO)**,** the Cato Institute’s [**Romina Boccia**](https://url.avanan.click/v2/r01/___https://zwly9k6z.r.us-east-1.awstrack.me/L0/https:*2F*2Fwww.cato.org*2Fpeople*2Fromina-boccia/1/010001a0af8f9f11-858640e9-47bf-4111-8c1b-43408e6b642b-000000/WgBrVwAdwbUTZu1hUFnyzfBzsq8=473___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjRmODZjNmUzNmZmMTBlMjM3MjRiM2YxMjNjZjQxNTgwOjc6NGZiOToyMGZlZTdjZWRhY2Y5MGJmZTgwYTA4MjYwYjJlY2Q5NjljMjkzOTViNDg2ZGZhNjVmNDA2MTQ1ODM1ZmE2ZDRiOmg6VDpO) looks at what a tax-only solution would actually cost American workers.

Cato’s new [**Social Security Payroll Tax Calculator**](https://url.avanan.click/v2/r01/___https://zwly9k6z.r.us-east-1.awstrack.me/L0/https:*2F*2Fwww.cato.org*2Fsocial-security*23payroll-tax-hike-calculator/1/010001a0af8f9f11-858640e9-47bf-4111-8c1b-43408e6b642b-000000/KUdSVVuv_9X5pGP7Bloby9gp3HA=473___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjRmODZjNmUzNmZmMTBlMjM3MjRiM2YxMjNjZjQxNTgwOjc6ZWUwNToxNjJkZGRhMjZhNTU0NzBlOWVkNDA4NDQ3NTI5OGFhOGUzZTg0YjNlYjg5NjdjMTAwZDZmN2JiZDgyY2QyN2JjOmg6VDpO) compares the current 12.4 percent payroll tax with estimates of the rates needed to close Social Security’s long-term financing gap through higher payroll taxes alone. For a median full-time worker earning about [$61,600](https://url.avanan.click/v2/r01/___https://zwly9k6z.r.us-east-1.awstrack.me/L0/https:*2F*2Fdata.census.gov*2Ftable*3Fq=B20018%26g=010XX00US/1/010001a0af8f9f11-858640e9-47bf-4111-8c1b-43408e6b642b-000000/0E55QTtuOzoBo4Fq505ZahMKiZE=473___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjRmODZjNmUzNmZmMTBlMjM3MjRiM2YxMjNjZjQxNTgwOjc6MjRlNToyNTRhNTUyYTdmNGUzYmVjNTBlYTUwOTViNGY5MGMyYzBlYTJiNTMyZmQyZGJlMGZmNDFiYzM5MGY5NDFjYjljOmg6VDpO), the added tax burden would amount to roughly **two months of** [**median rent nationwide**](https://url.avanan.click/v2/r01/___https://zwly9k6z.r.us-east-1.awstrack.me/L0/https:*2F*2Fdata.census.gov*2Ftable*3Ft=Renter*2BCosts%26g=010XX00US/1/010001a0af8f9f11-858640e9-47bf-4111-8c1b-43408e6b642b-000000/WTwvOwaCkEWbjE5t1R5bkETQppQ=473___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjRmODZjNmUzNmZmMTBlMjM3MjRiM2YxMjNjZjQxNTgwOjc6ZjZlYTpjYTRjNzNhMTAzMjAxOTQzMzFmN2UyZjk4ZGIzYWI0YjAzMDRiNjY2ZDg5OTNkNzFiNDcxNDY1MzQ5Y2UzNWVjOmg6VDpO).

![newsletter_Bocciachart_9-17-26-img-1](/sites/cato.org/files/styles/pubs_2x/public/2026-09/newsletter_Bocciachart_9-17-26-img-1.jpg?itok=jk7mf6iv) 

Boccia shared the following statement:

> *“Raising payroll taxes to close Social Security’s financing gap would cost the typical worker $2,600 to $3,000 more each year. Instead of reforming a 91-year-old program to meet the times, Congress would be forcing younger, working Americans to pay more to provide increasingly generous benefits for a population that largely doesn’t need them.”*

Boccia argues Congress should instead pursue reforms that slow benefit growth for higher earners, protect those who depend most heavily on Social Security, and put the program on a more sustainable fiscal path.

You can read her full analysis [**here**](https://url.avanan.click/v2/r01/___https://zwly9k6z.r.us-east-1.awstrack.me/L0/https:*2F*2Fwww.cato.org*2Fblog*2Fwhat-would-social-security-payroll-tax-hike-cost-you/2/010001a0af8f9f11-858640e9-47bf-4111-8c1b-43408e6b642b-000000/Py1XFg5MEpI8OktU2H6PKuUw45c=473___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjRmODZjNmUzNmZmMTBlMjM3MjRiM2YxMjNjZjQxNTgwOjc6N2IzYjpkMjVkMTkwZjk3NmI0NzhjMzZhMzdjZTc1NjhhYjAxNmQzMDY5MzhiMTkwZWQ0ZTUzMTI2MjAyOTY3MzJmZDIyOmg6VDpO). If you’d like to speak with Romina about the calculator, the cost of a payroll tax increase, or alternative approaches to Social Security reform, I’m happy to connect you.

Best,

Ryan Carver 
***Media Relations Manager*** 
*540–589‑0573* 
Cato Institute 
1000 Massachusetts Avenue, N.W. 
Washington, DC 20001