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In 2020, the Social Security Wage Base was $137,700 and in 2021 was $142,800; the Social Security tax rate was 6.20% paid by the employee and 6.20% paid by the employer. [1] [2] A person with $10,000 of gross income had $620.00 withheld as Social Security tax from his check and the employer sent an additional $620.00. A person with $130,000 of ...
The Average Indexed Monthly Earnings (AIME) is used in the United States' Social Security system to calculate the Primary Insurance Amount which decides the value of benefits paid under Title II of the Social Security Act under the 1978 New Start Method. Specifically, Average Indexed Monthly Earnings is an average of monthly income received by ...
The general Social Security earnings-test limit in 2025 is $23,400 (up from $22,320 in 2024). You'll have $1 in Social Security withheld for every $2 you earn above that limit.
Data source: Social Security Administration. The table shows that if your full retirement age is 67 (as it is for anyone born in 1960 or later) and you collect as soon as possible, at age 62, your ...
Due to the way the Social Security Administration runs it calculations, earnings in your 60s (and beyond) have a much bigger impact on your final benefit amount for those earning above the maximum ...
Social Security calculates your monthly benefit using your average earnings during the 35 years when you earned the most money. It adjusts your earnings for inflation (called "indexing") to ...
Image source: Getty Images. Your earnings must equal or exceed the wage base limit. Social Security benefits equal a percentage of inflation-adjusted earnings in the 35 years your income was highest.
Social Security's earnings-test limits are rising in 2025. Currently, you can earn up to $22,320 without having your Social Security benefits withheld. In 2025, that threshold is increasing to ...