Fact Sheet
Social Security
2021 SOCIAL SECURITY CHANGES
Cost-of-Living Adjustment (COLA):
Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2019 through the third quarter of 2020, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 1.3 percent COLA for 2021. Other important 2021 Social Security information is as follows:
| Tax Rate | 2020 | 2021 |
|---|---|---|
| Employee | 7.65% | 7.65% |
| Self-Employed | 15.30% | 15.30% |
NOTE: The 7.65 percent tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20 percent on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45 percent on all earnings. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent.
| 2020 | 2021 | |
|---|---|---|
| Maximum Taxable Earnings | ||
| Social Security (OASDI only) | $137,700 | $142,800 |
| Medicare (HI only) | No Limit | |
| Quarter of Coverage | ||
| $1,410 | $1,470 | |
| Retirement Earnings Test Exempt Amounts | ||
| Under full retirement age | $18,240/yr. ($1,520/mo.) | $18,960/yr. ($1,580/mo.) |
| NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. | ||
| The year an individual reaches full retirement age | $48,600/yr. ($4,050/mo.) | $50,520/yr. ($4,210/mo.) |
| NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit. | ||
| Beginning the month an individual attains full retirement age | None | |
| 2020 | 2021 | |
|---|---|---|
| Social Security Disability Thresholds | ||
| Substantial Gainful Activity (SGA) | ||
| Non-Blind | $1,260/mo. | $1,310/mo. |
| Blind | $2,110/mo. | $2,190/mo. |
| Trial Work Period (TWP) | $ 910/mo. | $ 940/mo. |
| Maximum Social Security Benefit: Worker Retiring at Full Retirement Age | ||
| $3,011/mo. | $3,148/mo. | |
| SSI Federal Payment Standard | ||
| Individual | $ 783/mo. | $ 794/mo. |
| Couple | $1,175/mo. | $1,191/mo. |
| SSI Resource Limits | ||
| Individual | $2,000 | $2,000 |
| Couple | $3,000 | $3,000 |
| SSI Student Exclusion | ||
| Monthly limit | $1,900 | $1,930 |
| Annual limit | $7,670 | $7,770 |
| Estimated Average Monthly Social Security Benefits Payable in January 2021 | ||
| Before 1.3% COLA | After 1.3% COLA | |
| All Retired Workers | $1,523 | $1,543 |
| Aged Couple, Both Receiving Benefits | $2,563 | $2,596 |
| Widowed Mother and Two Children | $2,962 | $3,001 |
| Aged Widow(er) Alone | $1,434 | $1,453 |
| Disabled Worker, Spouse and One or More Children | $2,195 | $2,224 |
| All Disabled Workers | $1,261 | $1,277 |
Social Security National Press Office Baltimore, MD