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Social Security's wage cap dictates how much annual income is taxed to fund the program. It changes annually and recently rose to $176,100.
Key Points from 24/7 Wall St.: The maximum Social Security check in 2025 is $5,108. There’s a maximum check because there is a cap on how much income is used to calculate benefits.
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 ...
That's because the government caps the amount of wages subject to Social Security tax. That cap increases every year as the standard of living increases. The earnings limit for 2025 is $176,100 ...
The first requirement is necessary because benefits are based on average wages in your 35 highest earning years -- but there is a cap on the wages that are subject to Social Security tax and ...
Social Security's benefit formula provides 90% of average indexed monthly earnings (AIME) below the first "bend point" of $791/month, 32% of AIME between the first and second bend points $791 to $4781/month, and 15% of AIME in excess of the second bend point up to the Ceiling cap of $113,700 in 2013. [171]
Along these lines, Social Security sometimes undergoes changes that aren't exactly welcome. In 2025, for example, the wage cap increased from $168,600 to $176,100, requiring higher earners to pay ...
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.