The Social Security Administration issued a press release showing the updated FICA max and Cost-of-Living Adjustment (COLA) for 2025.
The maximum amount of earnings subject to Social Security Tax is $176,100 for 2025. The maximum FICA tax imposed will be $10,918 ($176,100 x 6.2%), and there is no cap on the 1.45% Medicare tax. Self-employed taxpayers pay both the employer and employee portion. In 2024, the FICA max was $168,600 and the maximum FICA tax imposed was $10,453.
The COLA for recipients is 2.5% for 2025. It was 3.2% in 2024 and has averaged 2.6% over the last decade.
We're Here to Help
From business growth to compliance and digital optimization, Eide Bailly is here to help you thrive and embrace opportunity.
Speak to our specialists