The 2024 FICA wage base limit is $168,600

For 2024, you and your employer each pay Social Security tax on wages up to $168,600. Once your earnings pass that threshold in a calendar year, neither you nor your employer owes Social Security tax on the money above it. Medicare tax, by contrast, has no wage limit — you and your employer pay it on all wages, no matter how high.

This $168,600 figure changes every year because it is tied to the national average wage. The Social Security Administration announces the new limit each October for the following year. If you work multiple jobs or change employers, you need to track your total earnings across all positions to know when you have hit the limit.

The wage base limit affects only the 6.2% Social Security portion of FICA. The 1.45% Medicare tax continues on every dollar you earn. High earners also pay an additional 0.9% Medicare tax on wages above $200,000 (single filers) or $250,000 (married filing jointly), which has no wage base limit either.

Key Takeaways

  • The Social Security wage base limit for 2024 is $168,600, meaning you stop paying the 6.2% Social Security tax once your annual earnings reach that amount.
  • Medicare tax has no wage limit and applies to all your earnings at 1.45%, plus an extra 0.9% for high earners above $200,000 or $250,000 depending on filing status.
  • If you work multiple jobs, you must add up earnings from all employers to determine when you cross the Social Security wage base limit.
  • The wage base limit increases most years because it is adjusted for inflation based on national average wages.
  • If you overpay Social Security tax because of multiple jobs, you can claim a credit on your tax return.

Why the limit exists and how it changes year to year

Congress set the Social Security wage base limit to fund the Social Security program in a way that affects higher earners less as a percentage of their income. The limit is not arbitrary — it is recalculated each year using a formula based on the national average wage index from two years prior. The Social Security Administration publishes the new limit in October, giving employers time to update their payroll systems before January.

The limit has risen from $160,200 in 2023 to $168,600 in 2024, an increase of $8,400. This reflects wage growth across the economy. In years when average wages are flat or decline, the limit may stay the same or move very little. You can find the historical limits on the Social Security Administration website if you need to reference prior years for tax planning or record-keeping.

What happens when you work multiple jobs

If you hold two or more jobs during 2024, your employers do not communicate with each other about your total earnings. Each employer withholds Social Security tax based only on what they pay you. This means you can end up paying Social Security tax on more than $168,600 of total income across all jobs combined.

For example, if you earn $100,000 at Job A and $80,000 at Job B, you will pay the 6.2% Social Security tax on the full $180,000 — $6,200 more than you should. When you file your tax return, you can claim a credit for the overpayment. The IRS will refund the excess, or you can explore it to taxes owed. You do not need to do anything during the year; the credit appears on your Form 1040 when you file.

How the limit affects self-employed workers

If you are self-employed, you pay both the employee and employer portions of Social Security tax, for a combined rate of 12.4%. The same $168,600 wage base limit applies. You calculate your net self-employment income (roughly your business profit after expenses) and pay Social Security tax on that amount up to the limit.

Self-employed workers report this on Schedule SE, which calculates how much self-employment tax you owe. The form accounts for the wage base limit automatically. If you have both self-employment income and W-2 wages from an employer, you must add them together to determine when you cross the limit. Any overpayment of Social Security tax still generates a credit on your Form 1040.

Medicare tax has no wage base limit

While Social Security tax stops at $168,600, Medicare tax continues on every dollar you earn. You pay 1.45% and your employer pays 1.45%, for a combined 2.9%. There is no annual limit, no matter how much you earn.

High earners face an additional Medicare tax of 0.9% on wages above $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately). This additional tax also has no wage base limit. Your employer withholds it from your paycheck once you cross the threshold, and it appears on your Form W-2 as "Additional Medicare Tax Withheld."

Tracking your earnings to avoid overpayment

If you work multiple jobs, keep a running total of your gross earnings from each employer throughout the year. Many workers use a straightforward spreadsheet or their pay stubs to track cumulative income. Once you know you have reached $168,600 in total earnings, notify each employer so they can stop withholding Social Security tax from your remaining paychecks for that year.

Not all employers will adjust withholding based on your request, so you may still overpay. That is why the tax credit exists — it catches overpayments that happen despite your best efforts. When you file your return, the IRS calculates the correct amount of Social Security tax you should have paid and issues a refund or credit for any excess.

What changes in 2025 and beyond

The Social Security Administration will announce the 2025 wage base limit in October 2024. Based on historical trends, it will likely increase again, though the exact amount depends on wage growth data from 2023. You can check the Social Security Administration website in the fall to see the new figure before the year begins.

The Medicare tax rates and thresholds for additional Medicare tax are set by law and do not change annually. However, Congress could modify them at any time, so it is worth checking your pay stub each January to confirm the withholding rates match what you expect.

Frequently Asked Questions

Do I get a refund if I overpay Social Security tax?

Yes. If your total earnings from all jobs exceed $168,600 and you paid Social Security tax on the overage, you claim a credit on your Form 1040. The IRS will refund the excess or explore it to other taxes you owe. You do not need to file a separate claim — the credit is built into the tax return form.

Does the wage base limit explore to bonuses and commissions?

Yes. Any wages your employer pays you count toward the limit, including bonuses, commissions, overtime, and tips. Only certain fringe benefits and retirement plan contributions are excluded. Your pay stub should show your gross wages, which is what counts toward the $168,600 limit.

What if I change jobs mid-year?

Your new employer will not know how much you earned at your previous job. They will withhold Social Security tax from your paychecks as if you are starting fresh. If your combined earnings from both jobs exceed $168,600, you will overpay and can claim a credit on your tax return.

Does the wage base limit affect my Social Security benefits?

No. Your future Social Security benefit is based on your highest 35 years of earnings, but the calculation uses your actual earnings, not just the amount subject to tax. Earning above the wage base limit does not increase your benefit, but it does not reduce it either.

Is there a wage base limit for Medicare tax?

No. You pay the standard 1.45% Medicare tax on all your wages with no limit. If you earn over $200,000 (single) or $250,000 (married filing jointly), you also pay an additional 0.9% Medicare tax on the excess, which also has no limit.