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In 2025, FICA taxes will increase for higher earners as a result of one key Social Security change. To be clear, the FICA tax rate isn't changing. It will still be 15.3%, split equally between ...
The big Social Security news from the last couple of months has been the 2025 COLA, which came in at 2.5%. ... employee and employer portions of the 12.4% Social Security tax. Traditionally ...
Right now, the Social Security tax rate is 12.4% — 6.2% for the employee, 6.2% for the employer. With this change, employees will pay up to $10,918.20 in 2025, compared to $10,453.20 currently ...
The increase in 2025 will perhaps have the biggest impact on those earning between $168,600 and $176,100 per year, as you'll face Social Security tax on income that wasn't previously taxed in 2024.
While the wage cap for Social Security is rising in 2025, the Social Security tax rate is staying the same. That rate is 12.4% of your income, up to the annual wage cap.
The Federal Insurance Contributions Act (FICA / ˈ f aɪ k ə /) is a United States federal payroll (or employment) tax payable by both employees and employers to fund Social Security and Medicare [1] —federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.
For 2025, the Social Security wage base — the cap on earnings subject to Social Security tax — will rise to $176,100, meaning only income up to that amount is taxed for Social Security.
In 2025, that threshold, known as the earnings-test limit, is $23,400, up from $22,320. ... At the Social Security tax rate of 12.4%, that's an additional $930 you're looking at in 2025. And if ...