The Social Security Administration announced a whopping 8.7%
boost to monthly Social Security and Supplemental Security Income (SSI)
benefits for 2023. This is on the heels of a 5.9% increase last year. The
increase is based on the rise in the Consumer Price Index over the past 12
months ending in September 2022. For
those contributing to Social Security through wages, the potential maximum
income subject to Social Security tax increases to $160,200. This represents
a whopping 9% increase in your Social Security Tax! Here’s a recap of the key
dollar amounts: 2023 Social Security Benefits – Key Information What it means for you
Social Security & Medicare Rates The
Social Security and Medicare tax rates do not change from 2022 to 2023. Note: The above tax rates are a
combination of 6.20 percent Social Security and 1.45 percent for Medicare.
There is also a 0.9 percent Medicare wages surtax for single taxpayers with
wages above $200,000 ($250,000 for joint filers) that is not reflected in
these figures. Please note that your employer also pays Social Security and
Medicare taxes on your behalf. These figures are reflected in the
self-employed tax rates, as self-employed individuals pay both halves of the
tax. |