SSA Announces 2018 Social Security Wage Base Increase

Less than one minute read time.

The Social Security Administration (SSA) recently announced that the 2018 Social Security wage base is increasing to $128,400 in 2018, from $127,200 in 2017.  The Social Security tax rate will remain at 6.2% for both the employee and employer portions of the tax.

There were no changes made to the Medicare tax; therefore, all taxable wages are still subject to the 1.45% tax for both the employee and employer portions.  The Medicare tax does not have a wage limit, and certain employees will be subject to the Additional Medicare Tax after their wages exceed the $200,000 threshold.  The withholding rate of 0.9% for the Medicare Additional Tax only applies for employees; employers are not subject to this portion.

For more information, please refer to the links below from the SSA website:

And for the latest year-end tips, updates, and information from Sage, bookmark the Sage Year-end Center:

NOTE:  This blog post was updated on 11/28/17 after the SSA published a new press release.  The release communicated that the 2018 social security wage base will be $128,400, and not $128,700 as they originally reported on 10/13/17.