Social Security Tax Earnings Cap to Jump on U.S. Wages: Chartby
The Social Security Administration is making up for lost time. Maximum earnings subject to the Social Security tax benefiting retired and disabled Americans will increase to $127,200 in 2017 from the current cap of $118,500 as average wages gain, the government announced Tuesday. The 7.3 percent jump is the biggest since 1983, and comes after the U.S. left the earnings limit unchanged in 2016. Of the estimated 173 million workers who will pay such taxes next year, about 12 million will contribute more -- as will their employer -- due to the change: As much as $539 based on the withholding rate of 6.2 percent.