Social Security Wage Base Increases to $176,100 in 2025

The Social Security Administration (SSA) has announced that the maximum earnings subject to Social Security (OASDI) tax will increase from $168,600 to $176,100 in 2025. The maximum Social Security employer contribution will increase $465 in 2025. These changes reflect cost-of-living adjustments (COLA) to account for inflation.​
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For 2025, the Federal Insurance Contributions Act (FICA) tax rate for both employers and employees is 7.65% (6.2% for Social Security tax and 1.45% for Medicare tax). 

For 2025, an employer must withhold: 

1. 6.2% Social Security tax on the first $176,100 of employee wages (maximum tax is $10,918.20; i.e., 6.20% × $176,100)*, plus; 
   
2. 1.45% Medicare tax on the first $200,000 of employee wages, plus; 
   
3. 2.35% Medicare tax (regular 1.45% Medicare tax + 0.9% additional Medicare tax) on all employee wages in excess of $200,000. 

*Note that for above, a self-employed worker will pay a total of $21,836.40 in social security tax ($176,600 × 12.4%).
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In addition, Social Security and Supplemental Security Income (SSI) benefits will increase by 2.5% in 2025.
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Lastly, the retirement earnings test remains in effect for individuals below normal retirement age (age 65 to 67, depending on year of birth) who continue to work while collecting Social Security benefits. For affected individuals, $1 in benefits will be withheld for every $2 in earnings above $23,400 in 2025 (up from $22,320 in 2024). For working individuals collecting benefits who reach normal retirement age (NRA) in 2025, $1 in benefits will be withheld for every $3 in earnings above $62,160 (up from $59,520 in 2024), until the month that the individual reaches NRA. After that month, there is no limit on earnings.
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The SSA had a 2025 Fact Sheet on the changes. 
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