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Introduction
Some new things are coming your way in regards to social security taxation in 2024. On October 10th 2024, the Social Security Administration announced that the 2025 social security wage base will increase from the current $168,600 to $176,100, a $7,500 base increase (The SSA fact sheet can be found here). There will be no changes made to medicare taxation as there is currently no wage limit and all covered wages are subject to the 1.45% tax. Wages in excess of $200,000 in 2025 will also remain subject to the additional medicare tax of 0.9% to only be withheld from employee’s wages and not subject to employer taxation.
Unlike the increased wage base, the Social Security tax rate of 6.2% will remain the same in 2025. This will make the maximum social security tax both employers and employees could potentially pay in 2025, $10,918.20, an annual increase of $465.00 from the 2024 maximum.
Self Employed?
For self employed individuals in 2025 the social security wage base will also increase to $176,100 with no limit on wages subject to Medicare tax. The self employed social security tax rate remains unchanged at 15.3% with a maximum tax liability of $20,922.60 annually.
Cost of Living Adjustment (COLA)
With the increase in the Social Security wage base also comes an adjustment to benefit checks. The Social Security Administration announced a 2.5% increase in benefit checks for 2025, while the increase seen in 2024 was 3.2%. This follows the significant 8.7% increase implemented in 2023. For more information on the increase in benefits, please click here.
Table: Changes in the wage base and social security taxes in the past few years (1998-2025)
| Year | Wage Base | Increase | Maximum Social Security Employee Share | Maximum Social Security Employer Share | Maximum Total Contribution to Social Security |
|---|---|---|---|---|---|
| 2025 | $176,100 | 4.4% | $10,918.20 | $10,918.20 | $21,836.40 |
| 2024 | $168,600 | 5.2% | $10,453.20 | $10,453.20 | $20,906.40 |
| 2023 | $160,200 | 9.0% | $9,932.40 | $9,932.40 | $19,864.80 |
| 2022 | $147,000 | 2.9% | $9,114.00 | $9,114.00 | $18,228.00 |
| 2021 | $142,800 | 3.7% | $8,853.60 | $8,853.60 | $17,707.20 |
| 2020 | $137,700 | 3.6% | $8,537.40 | $8,537.40 | $17,074.80 |
| 2019 | $132,900 | 3.5% | $8,239.80 | $8,239 .80 | $16,479.60 |
| 2018 | $128,400 | 0.9% | $7,960.80 | $7,960.80 | $15,921.60 |
| 2017 | $127,200 | 7.3% | $7,886.40 | $7,886.40 | $15,772.80 |
| 2016 | $118,500 | 0.0% | $7,347.00 | $7,347.00 | $14,694.00 |
| 2015 | $118,500 | 1.3% | $7,347.00 | $7,347.00 | $14,694.00 |
| 2014 | $117,000 | 2.9% | $7,254.00 | $7,254.00 | $14,508.00 |
| 2013 | $113,700 | 3.3% | $7,049.40** | $7,049.40 | $14,098.80 |
| 2012 | $110,100 | 3.1% | $4,624.20 * | $6,826.20 | $11,450.40 |
| 2011 | $106,800 | 0.0% | $4,485.60* | $6,621.60 | $11,107.20 |
| 2010 | $106,800 | 0.0% | $6,621.60 | $6,621.60 | $13,243.20 |
| 2009 | $106,800 | 4.7% | $6,621.60 | $6,621.60 | $13,243 .20 |
| 2008 | $102,000 | 4.6% | $6,324.00 | $6,324.00 | $12,648.00 |
| 2007 | $97,500 | 3.5% | $6,045.00 | $6,045.00 | $12,090.00 |
| 2006 | $94,200 | 4.7% | $5,840.40 | $5,840.40 | $11,680.80 |
| 2005 | $90,000 | 2.4% | $5,580.00 | $5,580.00 | $11,160.00 |
| 2004 | $87,900 | 1.0% | $5,449 .80 | $5,449 .80 | $10,899.60 |
| 2003 | $87,000 | 2.5% | $5,394.00 | $5,394.00 | $10,788.00 |
| 2002 | $84,900 | 5.6% | $5,263 .80 | $5,263 .80 | $10,527.60 |
| 2001 | $80,400 | 5.5% | $4,984.80 | $4,984.80 | $9,969.60 |
| 2000 | $76,200 | 5.0% | $4,724.40 | $4,724.40 | $9,448.80 |
| 1999 | $72,600 | 6.1% | $4,501.20 | $4,501.20 | $9,002.40 |
| 1998 | $68,400 | $4,240 .80 | $4,240.80 | $8,481.60 |
Recommended Reading: Social Security Wage Base 2024
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