High Earner? You Will Pay More in Social Security Taxes in 2024
The vast majority of Social Security benefits are paid for by taxes on current workers. Every year, 12.4% of people's salaries -- up to a limit -- gets paid toward that program. If you're a standard employee, half that amount gets paid directly by you as an employee, and the other half gets paid by your employer on your behalf. If you're self-employed, you pay both halves of that tax.
In 2023, the salary limit subject to Social Security tax is $160,200. In 2024, that limit increases to $168,600. As a result, if you're a high earner, you will pay more in Social Security taxes in 2024 than you did in 2023. Indeed, as a higher earner, the total additional Social Security taxes you'll face in 2024 will be as much as $1,041.60 , even if your income remains exactly the same.
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Source Fool.com
