The 2025 Social Security wage base (also called the contribution and benefit base) is the maximum amount of earnings subject to Social Security tax in 2025.
For 2025, that wage base is $176,100.
What is the 2025 Social Security wage base?
The 2025 Social Security wage base is the upper limit on earnings to which the Social Security (OASDI) tax applies in 2025.
Wages above this amount are not subject to the Social Security portion of FICA (Federal Insurance Contributions Act) tax.
Once your earnings reach $176,100 for the year, additional income is no longer taxed for Social Security (though Medicare taxes still apply).
How is the 2025 Social Security wage base determined?
The 2025 Social Security wage base is derived using a statutory formula tied to national average wages.
The SSA multiplies a benchmark year’s wage base (1994’s $60,600) by the ratio of the national average wage index for 2023 divided by that for 1992, then rounds to the nearest $300.
If that result is less than the prior year’s base, they use the prior year’s base instead.
For 2025, the formula yields an amount that rounds to $176,100. That is greater than the 2024 base of $168,600, so the new base applies.
What is the tax implication of the 2025 Social Security wage base?
With the 2025 Social Security wage base set at $176,100, the maximum Social Security tax an employee (or employer) pays is 6.2 percent of that amount:
- Employee’s share: 6.2% × $176,100 = $10,918.20
- Employer also contributes the same amount (6.2%) for that same wage base, so total possible contribution to OASDI is double that, or $21,836.40 when combining both shares.
If you’re self-employed, you effectively cover both shares (12.4%) up to the wage base.
Earnings above that base are not taxed for Social Security, though they remain subject to Medicare tax (with no cap).
How does the 2025 Social Security wage base affect benefits?
The 2025 Social Security wage base also caps the portion of your earnings that count toward your benefit calculation in that year.
Wages above $176,100 are disregarded when determining your Average Indexed Monthly Earnings (AIME) or benefit formula.
Because your benefit is based on your top 35 years of earnings (capped at the base), earning above the cap may not directly boost your benefit unless you replace a year with lower earnings.
How does the 2025 base compare with recent years?
Here’s how the 2025 Social Security wage base compares:
- 2024 base was $168,600
- The increase from 2024 to 2025 is $7,500, or about a 4.45 percent rise.
- Historically, the base has risen each year with wage growth via the formula.
Because the base increased, high earners will pay more Social Security tax in 2025 than they did in 2024 (on the taxable portion).
Who is affected most by the 2025 Social Security wage base?
High earners, those whose wages exceed $176,100, are most affected by the wage base.
They pay the maximum Social Security tax and gain no tax exposure on additional income beyond that.
Meanwhile, everyone whose earnings are below $176,100 pays Social Security tax on all their wages.
The base shift increases taxes for those who were near or above the 2024 base.
For instance, someone earning $200,000 pays Social Security tax only on the first $176,100. The additional $23,900 is not taxed for OASDI.
What should you do with knowledge of the 2025 base?
- If you’re an employer or payroll manager, update withholding systems and payroll software so that Social Security taxes stop at $176,100.
- High earners should factor in the additional tax up to the base when forecasting earnings and net pay.
- If self-employed, recognize that your Social Security tax liability caps at 12.4% of earnings up to $176,100, plus Medicare on all income.
- When planning future earnings or side jobs, know that once you exceed $176,100, additional income will not increase your Social Security tax (but might increase Medicare or income taxes).
- Monitor future announcements—2026’s base is projected to be $183,600.
