The 2024 FICA wage base limit is $168,600 for Social Security tax

The Social Security wage base — the maximum amount of your earnings subject to Social Security tax in 2024 — is $168,600. Any income you earn above that amount is not taxed for Social Security purposes. Medicare tax, by contrast, has no wage cap and applies to all your earnings, no matter how high.

This limit changes each year based on national wage growth. The Social Security Administration announces the new figure in October for the following year. If you earn more than $168,600 in 2024, you and your employer will stop paying Social Security tax once you cross that threshold, but Medicare tax continues on every dollar.

Self-employed people pay both the employee and employer portions of FICA tax (called self-employment tax), so the $168,600 limit affects them the same way — they owe Social Security tax only on earnings up to that amount.

Key Takeaways

  • The 2024 Social Security wage base limit is $168,600; earnings above this amount are not subject to Social Security tax.
  • Medicare tax has no wage limit and applies to all earnings at a flat rate of 2.9 percent, plus an additional 0.9 percent tax on high earners.
  • If you work for multiple employers in 2024, you may overpay Social Security tax and can claim a refund on your tax return.
  • Self-employed workers pay both the employee and employer share of FICA tax, but the Social Security portion still stops at $168,600 in total net earnings.

How the wage base limit affects your paycheck

Your employer withholds Social Security tax at 6.2 percent of your wages up to the $168,600 limit. Once you earn $168,600 in a calendar year, your employer stops withholding Social Security tax from your remaining paychecks for that year. The maximum Social Security tax you will pay as an employee in 2024 is $10,453.20 (6.2 percent of $168,600).

Medicare tax continues throughout the year at 1.45 percent of all wages, with no cap. High-income earners — those making over $200,000 as a single filer, $250,000 as married filing jointly, or $125,000 as married filing separately — also pay an additional 0.9 percent Medicare tax on earnings above those thresholds.

If you change jobs mid-year or work for multiple employers, each employer withholds Social Security tax independently based on what they pay you. This can result in overpayment if your combined earnings from all jobs exceed $168,600. You recover the overpayment when you file your federal tax return.

What happens if you work for multiple employers

When you work for more than one employer during 2024, each one withholds Social Security tax on the wages they pay you, up to $168,600. If your total earnings from all jobs exceed $168,600, you will have paid more Social Security tax than required.

For example, if you earn $100,000 from one job and $80,000 from a second job, your first employer withholds $6,200 in Social Security tax and your second employer withholds $4,960. Your total Social Security tax paid is $11,160, but the correct amount is $10,453.20. You can claim the $706.80 overpayment as a credit on your federal tax return (Form 1040).

The IRS does not automatically refund the overpayment — you must report it when you file. If you expect to overpay, you can also adjust your withholding with your second employer using Form W-4, though this requires coordination and is less common.

Self-employment tax and the wage base limit

If you are self-employed, you pay self-employment tax, which covers both the employee and employer portions of FICA. The combined Social Security rate is 12.4 percent (double the employee rate), but it applies only to net self-employment income up to $168,600 in 2024.

You calculate self-employment tax on Schedule SE (Form 1040). The Social Security portion stops once your net earnings reach $168,600, but the Medicare portion (2.9 percent, plus 0.9 percent additional tax for high earners) continues on all net earnings. Self-employed people can deduct half of their self-employment tax as an adjustment to income on their tax return.

How the wage base limit changes year to year

The Social Security wage base is indexed to the National Average Wage Index, which measures average earnings across the U.S. workforce. When average wages rise, the wage base rises with it. The Social Security Administration calculates the new limit each year and announces it in October.

The limit has increased most years since 1975, though the amount of increase varies. From 2023 to 2024, the limit rose from $160,200 to $168,600 — an increase of $8,400. This reflects wage growth in the economy. The limit will likely increase again in 2025, though the exact amount depends on wage data collected through September 2024.

Frequently Asked Questions

Do I need to do anything when I reach the $168,600 limit?

No. Your employer automatically stops withholding Social Security tax once you reach the limit. You do not need to notify them or take any action. If you work for multiple employers, you may need to claim an overpayment refund on your tax return.

Does the wage base limit apply to Medicare tax?

No. Medicare tax has no wage cap and applies to all your earnings. You pay 1.45 percent Medicare tax on every dollar you earn in 2024, plus an additional 0.9 percent if your income exceeds the high-earner threshold for your filing status.

What if I work part-time and do not reach $168,600?

You pay Social Security tax on all your earnings at 6.2 percent. The limit only matters if you earn more than $168,600; if you earn less, you pay the tax on your full income.

Can my employer withhold Social Security tax after I hit the limit?

No. Federal law requires employers to stop withholding Social Security tax once an employee's wages reach $168,600 in a calendar year. If an employer continues to withhold after that point, you can request a refund or claim it on your tax return.