Social Security Wage Base Update for 2017

The Social Security wage base is $127,200 for 2017. The wage base represents the cap above which an employees wages are not subject to the 6.2% Social Security tax rate. There is no limit on employee wages subject to the 1.45% Medicare tax. So the FICA rate for 2017, which combines Medicare and Social Security taxes, will be 7.65% up to the wage base with employers paying an equal amount.

The social security wage base for self-employed individuals will also be $127,200. There is no limit on covered self-employment income that will be subject to the Medicare tax. The self-employment tax rate will be 15.3% (combined social security tax rate of 12.4% and Medicare tax rate of 2.9%) up to the social security wage base.