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It's not a given that you'll pay Social Security taxes on your entire salary. Each year, there's a wage cap put in place that determines how much income is taxed to fund the program. In 2025, that ...
The more you earn up to this cap, the more you'll pay in taxes -- and the higher your future benefit will be. The income limit will increase in most years to account for cost-of-living changes. In ...
This means more income of some workers will be subject to Social Security payroll taxes. For example, if you earned $175,000 in 2024, $6,400 would be exempt from Social Security payroll taxes.
3. The wage cap for Social Security taxes is going up. Social Security is funded primarily by payroll taxes. Each year, there's a wage cap set that dictates how much income gets taxed for Social ...
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.
Employees and employers typically both pay Social Security taxes at a rate 6.2% of earnings, up to the $168,600 wage cap in 2024. The Social Security Administration reported that around 180 ...
The Social Security earnings test withholds benefits from workers under their FRA who claim checks while earning an income over a certain threshold. In 2024, you lose $1 for every $2 you earn over ...
This limit is the highest income subject to Social Security taxes, and you'll need to consistently reach this cap to earn the maximum possible benefit amount. In 2024, the limit is $168,600 per year.