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The new wage base limit, which will be in effect in 2025, is $176,100, up from the $168,600 limit in 2024. This means more income of some workers will be subject to Social Security payroll taxes.
The employer Social Security tax rate and the Social Security Wage Base were not directly impacted by this act, though they did change; only the employee's tax rate changes. This is reflected in the above table, showing the reduction from $6,621.60 to $4,485.60.
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.
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 the wage base limit is.
Robert Reich, former United States Secretary of Labor, suggests lifting the ceiling on income subject to Social Security taxes, which is $168,600 as of 2024. [119] Increase Social Security taxes. If workers and employers each paid 8.0% (up from today's 6.2%), it would provide solvency through 2090.
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.
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.
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 ...
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related to: 2013 social security tax limits 2024 25 million