The Social Security Payments are offered for the financial help of the US residents. But Do you ever think about how these social security payments are financed? Who funds these payments? Let’s know this! These social security payments are financed through the taxes that the SSA deducts from your paychecks. Yes, the employee or employer who is working and when they receive their wages the some amount of security tax is deducted from the paychecks. The self-employed persons need to report these social security taxes in quarterly tax payments.
The social security taxes are deducted from the wages monthly. These are only deducted so that in future you will receive the social security payments as the citizens who pay the security taxes to the Government will qualify for the benefits such as retirement payments or disability benefits. For our future safety we pay security taxes to the US Government. The taxes are automatically deducted from the paychecks. This guide will tell you about the Social Security Tax Limit 2024 with the tax rates, and history of the tax rates. Also we will know the taxable earnings in this guide.
Social Security Tax Limit 2024
You already know the reason for social security taxes. Now Do you ever wonder how this works? Let’s know all this here in the post. There are mainly two taxes which are linked to social security. The one is Social security tax which could also be known as OASDI. The other one is Medicare Tax. From both these payroll taxes the Social Security Payments are funded. This guide will include only the data for Social Security Taxes. This will include the tax rates for the distinct designations, tax limits or tax caps on the earnings or wages. Also we will know the calculation of the security taxes.
These Social security taxes will open our doors for the security payments such as retirement payments or SSDI payments. These both payments will offer us the amounts starting from $2710 per month, $3822 per month or more than this also for retirement payments. Our taxes payments now will secure our future. Based on our earnings history the social security payments are offered to us. The US residents who also see the deductions of the social security taxes from their paychecks then they must see this guide. As this guide will offer the social security tax calculations, limits as well as rates for the taxes. Check this guide for Social Security Tax Limit 2024.
US Social Security Tax 2024- Overview
| Post Title | Social Security Tax Limit 2024 |
| Year | 2024 |
| Country Name | USA |
| Name of the Managing Authority | SSA |
| Name of the Tax | Social Security Tax |
| SSA Tax Limit In 2024 | $1,68,600 |
| Social Security Tax Objective | Fund the Social Security Payments |
| Social Security Tax Rate 2024 | 6.2% Employee6.2% Employer12.4% Self Employed |
| Post Category | Finance |
| Official Web Page | www.ssa.gov |
SSA Tax Limit In 2024
The Tax Cap which is set for this year is $1,68,600. The maximum earnings that can be taxed are up to maximum taxable earnings. The social security taxes will be taxed only upto the amount of $1,68,600. These taxable earnings amounts get revised each year. This guide will provide the tax limit history for the previous year’s also. Let’s know the tax cap for the past years as well:
| Year | Tax Cap | Year | Tax Cap |
| 2016 | $1,18,500 | 2021 | $1,42,800 |
| 2017 | $1,27,200 | 2022 | $1,47,000 |
| 2018 | $1,28,400 | 2023 | $1,60,200 |
| 2019 | $1,32,900 | 2024 | $1,68,600 |
| 2020 | $1,37,700 | 2025 | ? |
Social Security Tax Rate 2024
The tax rate for social security also varies for each year. As the new tax rate is set by the law every year. The tax deductions are based on these tax rates only. The employers, the employees, the self employed people have distinct tax rates. The tax rates for the social security this year are provided below:
| Year | Employer, Employee | Self Employed | ||||
| 2024 | OASI | DI | OASDI | OASI | DI | OASDI |
| 5.3% | 0.9% | 6.2% | 10.6% | 1.8% | 12.4% | |
US Increase Tax Rate 2024
This will tell us the tax rate increase for this year with comparison with the previous years.
| Year | Employer, Employee | Self Employed | ||||
| 2019 or later | OASI | DI | OASDI | OASI | DI | OASDI |
| 5.3% | 0.9% | 6.2% | 10.6% | 1.8% | 12.4% | |
| 2016 – 2018 | 5.015% | 1.185% | 6.2% | 10.03% | 2.370% | 12.4% |
| 2000 – 2015 | 5.3% | 0.9% | 6.2% | 10.6% | 1.8% | 12.4% |
| 1997 – 1999 | 5.350% | 0.85% | 6.2% | 10.7% | 1.7% | 12.4% |
| 1994 – 1996 | 5.260% | 0.94% | 6.2% | 10.52% | 1.88% | 12.4% |
| 1990 – 1993 | 5.6% | 0.6% | 6.2% | 11.2% | 1.2% | 12.4% |
As we can see from the patterns, the tax rate has not changed since 1990. But the separate rates for the OASI and DI are changed each year.
US Tax Limit Calculator 2024
The tax for social security can be easily calculated. Suppose the earnings per year are $1,50,000 and the monthly earnings would be $12,500. The employees or employer with these earnings would have tax of $12,500 * 6.2% = $775 per month. The self employed with these earnings would have tax of $12,500 * 12.4% = $1,550 Per month.
Fact Check Social Security Tax Limit 2024
The data which are provided for the calculation are illustrated but the steps or procedure for the tax computation are reliable. The tax limits, tax rates are also reliable for this year. The more data will be provided by the SSA on its portal. The citizen can check the SSA portal for the next year tax rates as well as limits. In Mid October the next year tax limit will be available.
FAQ Related To Social Security Tax Limit 2024
The earnings over the tax limits are not subjected to OASDI Taxes.
No, Each year the tax limit is revised by SSA.
No, the doubled tax rate is paid by the self-employed persons.
Yes, the security taxes automatically deducted from the paychecks.
The tax cap for this year is $1,68,600.
