Federal Tax, Tax

New Social Security Wage Base Increases

For 2023, the Social Security wage base notably increased by $13,200, to $160,200. (Wages and self-employment income above the threshold aren’t subject to the 6.2% Social Security tax.) For 2024, the Social Security Administration’s Office of the Chief Actuary (OCA) is projecting that the wage base will increase by $7,500, to $167,700. Note that actual annual increases to the Social Security wage base are announced in October, based on current economic conditions. Of note, the OCA is projecting that the combined Social Security trust funds will become depleted in 2033, with 77% of benefits payable at that time. This is one year sooner than the OCA projected last year. Contact the Cg Team with questions. © 2023