What is the social security wage base limit for the tax year 2021?
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Last modified 4/24/2023 5:05:39 AM EST |
Added by TaxBandits Team
The Social Security Administration in the United States adjusts the taxable earning level each year based on the national average pay index. According to it, when the expense of living rises, so does the amount of taxation earned.
For the year 2022, the Social Security Wage Base Limit is fixed as $147,000, which means an individual(employee) who earns equal to or above this wage base limit has to pay the social security tax. The employee and employer contribution to social security tax is 6.2 percent each. The maximum taxation earning limit is also applicable for the contribution and benefit plans.
To learn more about the wage limit, click here.