Tax News Update    Email this document    Print this document  

May 9, 2024
2024-0936

Social Security Administration publishes wage base projections for 2025 through 2033

For those responsible for employment tax budgets, or just curious what the future may hold, following are the estimated Social Security wage-base limits for employers and employees for calendar years 2025 through 2033 as recently published by the Social Security Administration (SSA). (Social Security Administration press release, 5-6-2024; The 2024 OASDI Trustees Report, Table V.C.1 (pg.122.)

In reviewing the following charts, keep in mind that the SSA provides three estimates — high, intermediate and low. For 2024, the actual wage base is $168,600, higher than the projected intermediate, high-cost and low-cost estimate of $167,700 in the March 2023 Annual Report of the Board of Trustees. (See Tax Alert 2023-0651.)

The May 2024 projections reflect an estimated increase in 2025 to $174,900 for intermediate and high-cost and $175,500 for low-cost.

Projected Social Security wage base information as provided by the SSA in May 2024

 

Calendar year

Intermediate

estimated wage base $

Low-cost

estimated wage base $

High-cost

estimated wage base $

2024 (actual)

168,600

168,600

168,600

2025

174,900

175,500

174,900

2026

181,800

184,200

178,500

2027

188,100

194,100

181,200

2028

195,900

204,000

187,800

2029

204,000

215,100

194,700

2030

213,600

227,100

201,900

2031

222,900

239,700

209,100

2032

232,500

252,600

216,600

2033

242,700

267,000

224,100

Projected Social Security wage base information as provided by the SSA in March 2023

(See Tax Alert 2023-0651)

 

Calendar year

Intermediate

estimated wage base $

Low-cost

estimated wage base $

High-cost

estimated wage base $

2023 (actual)

160,200

160,200

160,200

2024

167,700

167,700

167,700

2025

174,900

175,500

171,000

2026

181,200

185,700

177,300

2027

188,700

197,100

183,600

2028

196,500

208,200

190,200

2029

204,600

219,300

196,800

2030

212,700

231,000

202,500

2031

221,400

243,000

207,900

2032

230,100

255,900

213,600

* * * * * * * * * *
Contact Information

For additional information concerning this Alert, please contact:

Workforce Tax Services - Employment Tax Advisory Services

Published by NTD’s Tax Technical Knowledge Services group; Jennifer A Brittenham, legal editor
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement