Attention High Earners: Here's the Maximum Social Security Tax for 2023
Each year, the Social Security Administration determines the maximum amount of earned income that Social Security tax applies to. This is formally known as the contribution and benefit base.
For 2023, the contribution and benefit base is rising to $160,200, due to the high rate of inflation in the United States. This is also the maximum income that can be used to compute the Social Security payments to retirees who start collecting their benefit.
Here, we'll discuss how this number is used when computing the Social Security tax of higher-earning Americans, and what the maximum Social Security tax you might have to pay in 2023 will be.
Source Fool.com
