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In 2025, the maximum taxable earnings limit will increase to $176,100. Most workers pay 6.2% of their income, which means the maximum tax burden is $10,918.20. That exceeds the maximum tax burden ...
Each year, there's a wage cap put in place that determines how much income is taxed to fund the program. In 2025, that cap is $176,100, up from $168,600 in 2024.
However, the amount of income subject to the Social Security portion of the FICA tax will change next year. The maximum taxable earnings is currently $168,600 but will rise to $176,100 in 2025.
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 ...
Earnings-test limit for those reaching FRA in 2025: If you'll hit FRA in 2025, the earnings-test limit is much higher. It jumps to $62,160. It jumps to $62,160. That's up from $59,520 in 2024.
Income Limits 2024. Income Limits 2025. Benefit Reductions. If you're under FRA. $22,320 per year. $23,400 per year. $1 for every $2 over the limit. If you'll reach your FRA this year
[a] [9] The taxation limit in 2020 was $137,700 of gross compensation, resulting in a maximum Social Security tax for 2020 of $8,537.40. [7] This limit, known as the Social Security Wage Base, goes up each year based on average national wages and, in general, at a faster rate than the Consumer Price Index (CPI-U).
The RET exempt amounts are updated annually based on changes in general wage levels. The official amounts for 2025 will be announced in October, but the trustees estimate the lower limit at ...