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.
How it works
The Social Security wage base is the ceiling on how much of your annual earnings are subject to the 6.2% Social Security tax. For 2025, that ceiling is $176,100. Once your cumulative wages for the year pass that amount, no more Social Security tax is withheld for the rest of the year — the wage base applies only to Social Security tax, not to Medicare tax, which has no such limit and applies to every dollar of wages.
Your employer tracks your year-to-date wages and automatically stops withholding Social Security tax once you cross the wage base, which shows up as your Social Security withholding (Box 4 on your W-2) leveling off for the rest of the year even as your gross pay keeps growing. If you switch jobs mid-year, each new employer starts tracking from zero, since they generally have no way to know how much you already earned elsewhere.
The Social Security Administration adjusts the wage base every year based on growth in the national average wage index, and it has risen steadily over time — from $132,900 in 2019 to $176,100 in 2025. If you work multiple jobs in the same year and your combined wages across employers exceed the wage base, more Social Security tax may be withheld in total than the annual maximum, since each employer withholds independently; you can claim that excess back as a credit on your tax return.
Example: crossing the wage base mid-year
An employee earning a $220,000 annual salary crosses the 2025 wage base of $176,100 partway through the year — specifically once their cumulative wages for the year reach that amount.
From that point forward, no additional Social Security tax is withheld from their remaining paychecks for the rest of the year, even though Medicare tax continues to be withheld at 1.45% on every remaining paycheck, since Medicare has no wage base at all.
Frequently asked questions
What is the Social Security wage base for 2025?
Does the wage base apply to Medicare tax too?
What happens if I have two jobs and together earn more than the wage base?
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%.