The Social Security Administration announced the 2025 Social Security wage base on October 10, 2024. This limit is the maximum amount of wages subject to the Social Security tax in the calendar year.
The 2025 wage base is $176,100, marking an increase of $7,500 from the 2024 limit.
No limit applies to the wages subject to the Medicare tax. Any wages in excess of $200,000 are subject to an additional 0.9% Medicare tax withholding (from employee wages only).
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.
