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One of these is the maximum amount of earnings that are subject to Social Security tax. Here's what the new limit is and what it means for high earners in the United States. The $ 22,924 Social ...
For the Old Age, Survivors and Disability Insurance (OASDI) tax or Social Security tax in the United States, the Social Security Wage Base (SSWB) is the maximum earned gross income or upper threshold on which a wage earner's Social Security tax may be imposed. The Social Security tax is one component of the Federal Insurance Contributions Act ...
This cap is the highest annual income subject to Social Security tax, and the closer your wages are to this limit, the higher your benefit will be. In 2024, the cap is $168,600 per year.
Unlike the COLAs, which are tied to inflation, these annual tax limits are based on changes in the national wage index. For 2024, the maximum earnings subject to Social Security taxes is $168,600.
You'll also have to consistently reach the maximum taxable earnings limit, which is the highest income subject to Social Security tax. Starting in 2025, that limit will be $176,100 per year.
In 2024, the maximum earnings subject to Social Security taxes was $168,600. This means workers paying into the system are taxed on wages up to this amount, typically at the 6.2 percent rate.
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.
Image source: Getty Images. Social Security's wage base limit is increasing in 2025. To understand why some people will have to pay more Social Security payroll tax in 2025, you need to know what ...
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