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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 ...
According to December 2023 data from the Social Security Administration, the average retiree collects around $2,038 per month in benefits at age 70, while the average benefit at age 62 is just ...
Each year, a wage cap is established that dictates how much income is taxed per worker for Social Security purposes. In 2025, that amount is $176,100. ... rampant inflation has led to higher-than ...
Despite its regressive tax rate, Social Security benefits are calculated using a progressive benefit formula that replaces a much higher percentage of low-income workers' pre-retirement income than that of higher-income workers (although these low-income workers pay a higher percentage of their pre-retirement income). [159]
In 2024, the Social Security wage cap is $168,600. In 2025, that cap is rising to $176,100. This means that higher earners generally will pay Social Security tax on an additional $7,500 of income.
If you want to earn the maximum Social Security retirement benefit, be prepared to work many years at a high salary and put off collecting benefits as long as possible. Even if you do get the ...
Data source: Social Security Administration. Only a small percentage of workers will earn above the maximum in any given year. But the people that will qualify for the maximum $5,108 benefit in ...
You’ll get credit only for earnings up to the Social Security wage base, which is the maximum amount of income on which Social Security assesses taxes. For 2024, the Social Security wage base is ...