Maximum Social Security tax in 2024
If you are tired of paying taxes to the Social Security Administration and you want to know the maximum amount you could pay in taxes in 2024, let’s have a look at it.
Do not forget that this amount will change in 2025. Therefore, it is updated every year so that the Social Security Administration can make up for the increasing cost of living in the United States.
What is the maximum Social Security tax in 2024?
The maximum Social Security tax is worth $168,600 in 2024, up from $160,200 in 2023. Bear in mind that it was $147,000 in 2022, just a couple of years ago. Hence, it has increased considerably.
Some people do not know that when they are working, there is a limit on the amount of taxes they pay. So, not all your earnings may be taxed by the Social Security Administration if you earn more than $168,600 in 2024.
People often call this the taxable maximum. If you read more on the topic, you may see it as the contribution and benefit base too. This taxable maximum can help you achieve the largest retirement benefit in 2024, but how?
Social Security’s taxable maximum
In order to get the largest Social Security payment in the United States, you will need to earn the taxable maximum for at least 35 years. Otherwise, you will not be able to achieve it even if you have met the 3 other requirements.
Apart from earning the contribution and benefit base for thirty-five years, you must file for retirement benefits at 70. Early retirement or retirement at Full Retirement Age will not give you as much money as delayed retirement.
Besides, you must have worked in jobs covered by the Social Security Administration. Some workers may not pay taxes to SSA because their jobs do not have to. Working for 35 years in jobs covered by SSA is essential to get $4,873 in 2024.
