Social Security Payroll Tax Deduction Rate Increase for 2018

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Maximum Table Earnings Increase

According to the Social Security Administration, for 2018 the Social Security taxable wage base will increase from $127,200 to $128,700 maximum taxable earnings, an increase of $1,500.

FICA and Social Security Rates to Remain the Same

However, The Federal Insurance Contributions Act (FICA) tax rate of 7.65% will remain the same for 2018, which is the combined rate for Social Security (6.2% up to the maximum taxable amount) and Medicare (1.45%).

For individuals with more than $200,000 earned income ($250,000 for married couples filing jointly), an additional 0.9 percent in Medicare taxes will apply. Note: No limit currently exists on the amount of wages subject to the Medicare tax.

For individuals who are Self-Employed, the tax rate remains unchanged at 15.30%.

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