The maximum amount of earnings subject to tax for Social Security will increase to $176,100 in 2025. This change is based on national wage trends and will affect workers’ take-home pay. The current tax rate remains unchanged at 12.4%, but the maximum taxable income threshold has been steadily rising over the past decade.
The new limit surpasses last year’s threshold of $168,600. Workers with higher incomes can expect a larger share of their earnings to go towards Social Security taxes. Employers will also need to withhold more taxes from employees’ wages if they have multiple jobs.
For workers who receive tax refunds for excess Social Security taxes withheld, this increase means they may see bigger refunds next year. However, the total amount of taxes withheld could still exceed the new limit in some cases, requiring workers to claim a refund when filing their tax returns.
Source: https://en.as.com/latest_news/goodbye-to-the-168600-tax-income-limit-the-updated-maximum-amount-of-taxable-earnings-for-social-security-in-2025-n-2