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It is also the maximum amount of covered wages that are taken into account when average earnings are calculated in order to determine a worker's Social Security benefit. 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.
For 2020, the maximum Social Security tax paid by an employee — not including Medicare taxes — is $8,537.40. Medicare taxes are an additional 1.45% for both employers and employees, taking the ...
Maximum Taxable Earnings Limit. 2020. $137,700. 2021. ... That means most workers will pay up to 6.2% of $168,600 in Social Security taxes this year, so they could owe as much as $10,453.20 ...
[a] [9] The taxation limit in 2020 was $137,700 of gross compensation, resulting in a maximum Social Security tax for 2020 of $8,537.40. [7] This limit, known as the Social Security Wage Base, goes up each year based on average national wages and, in general, at a faster rate than the Consumer Price Index (CPI-U).
People hoping to receive the maximum Social Security benefit need to pay close ... 2020. $137,700. 2019. ... you don't pay Social Security payroll taxes on any income above the wage base limit ...
This is how the average and maximum benefit amounts have changed since 2014 -- as well as some not-so-good news about the future of Social Security. Two people sitting at a table looking at documents.
2020. $137,700. 1996. $62,700 ... 2024. $168,600. 2000. $76,200. 2025. $176,100. Data source: Social Security Administration. Chart by author. ... to receive the maximum possible Social Security ...
Social Security limits the amount of wages that it taxes each year based on inflation and wage growth. In 2024, Social Security's wage cap was $168,600. In 2025, it's $176,100.