Important news and information.

2023 Social Security Wage Cap Jumps

On October 13, 2022, the Social Security Administration announced the 2023 wage cap for purposes of the Social Security tax. For 2023, the Social Security wage cap will be $160,200. This is an increase from the 2022 wage cap of $147,000. As most taxpayers know, the Federal Insurance Contributions Act (FICA) tax on wages is 7.65 percent each for the employee and the employer. The FICA tax has two components:
  • A 6.2 percent Social Security tax, and
  • A 1.45 percent Medicare tax, also known as hospital insurance (HI).
For self-employed workers, the self-employment tax is 15.3 percent, consisting of:
  • A 12.4 percent Social Security tax, and
  • A 2.9 percent Medicare tax.
The Social Security tax applies only up to the wage cap. There is no wage cap for HI tax.


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