Workers’ contributions to Social Security will not disappear, but the amount will be adjusted in 2025 to reflect national wage trends.
Several developments are coming in 2025 that will affect our wallets and bank accounts. Although the 12.4% tax on workers’ earnings remains in effect, the maximum labor income that can be taxed will increase in 2025.
The social security tax is shared between employees and employers. Both must contribute 6.2 percent of the workers’ salary to the total of 12.4 percent that goes to Social Security. The rate has stayed constant since 1990, however the maximum amount of taxed income has climbed over time and will again in 2025.
How much is the maximum amount of earnings to be taxed in 2025?
In 2025, the highest income subject to Social Security tax will be $176,100. Income above this level is not taxed for Social Security. The maximum sum has continuously increased over the last ten years, as shown in the chart below.
| Year | Amount |
|---|---|
| 2015 | $118,500 |
| 2016 | $118,500 |
| 2017 | $127,200 |
| 2018 | $128,400 |
| 2019 | $132,900 |
| 2020 | $137,700 |
| 2021 | $142,800 |
| 2022 | $147,000 |
| 2023 | $160,200 |
| 2024 | $168,600 |
| 2025 | $176,100 |
Employers are required to deduct Social Security taxes from the wages of employees who work more than one job per year.
This means that the total Social Security taxes withheld may surpass the maximum limit. When submitting tax returns, workers can request a refund from the IRS for any Social Security taxes withheld that exceeded the maximum amount.
ALSO SEE : List of Changes Retirees Collecting Social Security Checks Must Make in 2025