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.