Individual taxable earnings of up to $160,2000 annually will be subject to Social Security tax in 2023, the Social Security Administration (SSA) announced Thursday, Oct. 13.
This amount, an increase from $147,000 in 2022, is the wage base limit that applies to earnings subject to the old age, survivors and disability insurance (OASDI) tax. The employee and the employer each will pay $9,932 in tax at the OASDI tax rate of 6.2%.
The SSA also announced a cost-of-living adjustment (COLA) of 8.7% for both Social Security and Supplemental Security Income (SSI) benefits beginning in January 2023.
The COLA increase, based on the consumer price index, marks a trend of rising COLAs in recent years. Learn more.