W-2 Box 3 — Social security wages
Your wages subject to Social Security tax, capped at the annual wage base. Differs from Box 1 because traditional 401(k) deferrals are not excluded.
At a glance — Box 3
- Box name
- Social security wages
- Reports to
- Not reported on 1040 directly.
- Check against
- Gross wages up to the Social Security wage base (indexed annually — see the year-notes block below).
What Box 3 means
Box 3 reports your wages subject to Social Security (OASDI) tax. This is gross pay minus pre-tax Section 125 cafeteria plan contributions (health premiums, FSA, dependent care FSA) and pre-tax HSA — but it does NOT subtract 401(k)/403(b)/457(b) deferrals. That is why Box 3 is almost always higher than Box 1 for anyone contributing to a traditional retirement plan.
Box 3 is capped at the Social Security wage base, which the SSA indexes annually to the national average wage. Earnings above that cap are not subject to the 6.2% Social Security tax. Box 3 + Box 7 (tips) cannot exceed the wage base.
Tax return implications
- Used (together with Box 7) to verify Box 4 (Social Security tax withheld at 6.2%).
- Your future Social Security retirement, disability, and survivor benefits are based on your highest 35 years of Social Security wages (Box 3 + Box 7) — not Box 1.
- If you had multiple employers and Box 3 + Box 7 totals across all W-2s exceed the wage base, you can claim excess Social Security tax on Form 1040, Schedule 3, Line 11.
Common pitfalls & things to check
- Box 3 should never exceed the year's Social Security wage base on a single W-2. If it does, ask your employer to correct it (Form W-2c).
- Statutory employees (Box 13) and household workers have different Box 3 rules.
- Tips over $20/month must be included here via Box 7.
For 2025 returns (filed by April 15, 2026)
- Social Security wage base
- $176,100
- SSA COLA Fact Sheet — 6.2% OASDI tax stops applying above this cap (Medicare continues uncapped).
Values sourced from central tax-year config at build time — update automatically on FY rollover.
Related W-2 boxes
Box 4 — Social security tax withheld
The Social Security tax your employer withheld — exactly 6.2% of Box 3 (plus Box 7 tips), capped at 6.2% of the annual wage base.
Box 1 — Wages, tips, other compensation
Your taxable federal wages for the year — gross pay minus pre-tax deductions like traditional 401(k), Section 125 cafeteria plan contributions, and pre-tax HSA.
Box 2 — Federal income tax withheld
Total federal income tax your employer withheld from your paychecks during the year, based on your Form W-4 elections.
Box 5 — Medicare wages and tips
Your wages subject to Medicare tax. Unlike Social Security, there is no wage base cap — Box 5 can exceed Box 3 on high salaries.
Reconciling your W-2 at tax time? Use the paycheck calculator to verify expected federal, Social Security, and Medicare withholdings on your salary, and the federal income tax calculator to estimate your refund or balance owing before you file.
Sources
W-2 box definitions per IRS General Instructions for Forms W-2 and W-3 and IRC §6051. Rates and thresholds current for tax year 2025 (file by April 15, 2026); 2026 figures included where published.