Wage Base
The maximum amount of earnings subject to Social Security tax in a given year. For 2025, the wage base is $176,100. Earnings above this amount are exempt from Social Security tax.
The Social Security wage base is the annual limit on earnings subject to the 6.2% Social Security tax. For 2025, this cap is $176,100. Once your cumulative wages for the year exceed this amount, no additional Social Security tax is withheld for the remainder of the year.
The wage base is adjusted each year by the Social Security Administration based on changes in the national average wage index. It has risen steadily over the decades — from $132,900 in 2019 to $176,100 in 2025 — reflecting growth in average wages.
If you work for multiple employers in one year and your combined wages exceed the wage base, you may have excess Social Security tax withheld. You can claim the overpayment as a credit on your tax return. Medicare tax, by contrast, has no wage base limit and applies to all earned income.
Related Terms
Social Security Tax
A 6.2% payroll tax on wages up to the annual wage base ($176,100 in 2025), matched by your employer. Funds Social Security retirement, disability, and survivor benefits.
FICA
Federal Insurance Contributions Act taxes that fund Social Security (6.2%) and Medicare (1.45%). Both employees and employers pay FICA, totaling 15.3% on wages.
Self-Employment Tax
The combined Social Security (12.4%) and Medicare (2.9%) tax paid by self-employed individuals — effectively both the employee and employer shares of FICA, totaling 15.3%.