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We call this annual limit the contribution and benefit base. This amount is also commonly referred to as the taxable maximum. For earnings in 2025, this base is $176,100. The OASDI tax rate for wages paid in 2025 is set by statute at 6.2 percent for employees and employers, each.
If you are working, there is a limit on the amount of your earnings that is taxable by Social Security. This amount is known as the “maximum taxable earnings” and changes each year. The maximum taxable earnings have changed over the years, as shown in the chart below.
Tax rates are set by law (see sections 1401, 3101, and 3111 of the Internal Revenue Code) and apply to earnings up to a maximum amount for OASDI. The rates shown reflect the amounts received by the trust funds.
NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings.
The Federal Insurance and Self-Employment Contribution Acts (FICA and SECA) require the withholding of taxes from wages of all employed people, and the net earnings of most self-employed people, for the Social Security and Medicare programs. Therefore, you will continue to pay taxes regardless of age.
Social Security Program (Old Age, Survivors and Disability Insurance – OASDI) 2024 Maximum Taxable Earnings1: OASDI–$168,600; Hospital Insurance (HI, also called Medicare Part A)–No limit.
Benefit Examples For Workers With Maximum-Taxable Earnings. The initial benefit amounts shown in the table below assume retirement in January of the stated year, with maximum-taxable earnings since age 22. Benefits in 2025 reflect subsequent automatic benefit increases (if any).
Other important 2021 Social Security information is as follows: NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below).
What is FICA? FICA is a U.S. federal payroll tax. It stands for the Federal Insurance Contributions Act and is deducted from each paycheck. Your nine-digit number helps Social Security accurately record your covered wages or self-employment. As you work and pay FICA taxes, you earn credits for Social Security benefits.
You will pay tax on your Social Security benefits based on Internal Revenue Service (IRS) rules if you: File a federal tax return as an "individual" and your combined income* is. Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits.