Social Security payroll tax limit increases for 2025. Here's how that may affect you

Oct. 13, 2024 - CNBC

In 2025, millions of retired Americans will see a 2.5% cost-of-living adjustment for benefit payments, according to the Social Security Administration.

The Social Security Administration on Oct. 10 unveiled a higher threshold for earnings subject to Social Security payroll taxes, known as the "taxable maximum" or "wage base.

" The limit shifts annually based on the national average wage index. The limit for 2025 will be $176,100, up about 4.

4% from $168,600 in 2024. Earnings above those caps aren't subject to Social Security taxes but still incur levies for Medicare.

..