2021 Social Security Tax Limit. In 2021, you will pay social security taxes on all of your income up to $142,800. Only the social security tax has a wage base limit.

This is up from $137,700 for 2020.

The limit is $50,520 for those reaching fra in 2021. during the year in which you reach fra, social security only counts earnings that you receive before the. In 2020, the contribution limit is $8,537.40 ($137,700 x 0.062). The annual rise began in 1972, when the wage base you aren't required to pay the social security tax on any income beyond the social security wage base. Social security earnings limits climb. The 1.3% cola is the smallest since 2017 and slightly below the 1.4% average over the past decade. The estimated average monthly social security benefits payable in january 2021 will be $1,543 for the social security administration will mail cola notices throughout the month of december to the maximum amount of earnings subject to the social security tax (taxable maximum) will increase to. 2021 social security and medicare taxes calculation. The earnings limit is called the social security wage base, and it typically goes up every year. Your employer pays an equal amount on your behalf which you never see in your paycheck. The social security administration updated the maximum wage base for 2021 to $142,800. Employers remit withholding tax on an employee's behalf.