In 2025, the Social Security wage base will rise from $168,600 to $176,100. The Social Security tax rates for both employees and employers will remain unchanged at 6.2%, with the maximum tax for each rising from $10,453.20 in 2024 to $10,918.20 in 2025, reflecting a $465 increase due to the higher wage base.
The Medicare tax rate will remain at 1.45% for both employers and employees, with no wage base limit. An Additional Medicare Tax of 0.9% will apply to wages over $200,000 for employees, although employers are not subject to this extra tax. An employee’s total Medicare tax on wages above $200,000 is 2.35%.
