Maximum Taxable Earnings
When you earn income, including through self-employment, that is covered by Social Security, you pay Social Security taxes each year up to a maximum amount that is set by law. That amount has changed frequently over the years.
For 2020, the maximum amount of taxable earnings is $137,700.
You now pay Medicare taxes on all your wages and your net profit from self-employment.
The maximum earnings for most recent four years are shown below. If you:
earned more than the maximum in any year but had only one job, the amount we use will be just the maximum amount.
had more than one job, the total that is recorded may be more than the maximum. However, we only use the maximum amount to calculate your benefit estimates.
When you have more than one job in a year, each of your employers must withhold Social Security taxes from your wages without regard to what the other employers may have withheld. You may then end up with total Social Security taxes withheld that exceed the maximum. You can claim a refund from the IRS of those Social Security taxes withheld that exceeded the maximum amount when you file your tax return the following year.
Maximum Taxable Earnings Each Year