2024 Social Security Tax Rates
| Who Pays | Rate | On Wages Up To | Max Annual Tax |
|---|---|---|---|
| Employee | 6.2% | $168,600 | $10,453.20 |
| Employer (matches) | 6.2% | $168,600 | $10,453.20 |
| Self-employed (both halves) | 12.4% | $168,600 | $20,906.40 |
The Wage Base Cap
The Social Security wage base ($168,600 in 2024) is adjusted annually for inflation. Once your cumulative earnings reach this threshold in any calendar year, Social Security withholding stops for the rest of the year. Your pay stub YTD column will show this clearly.
| Year | SS Wage Base | Max Employee Tax |
|---|---|---|
| 2021 | $142,800 | $8,853.60 |
| 2022 | $147,000 | $9,114.00 |
| 2023 | $160,200 | $9,932.40 |
| 2024 | $168,600 | $10,453.20 |
What Does Social Security Tax Fund?
OASDI stands for Old-Age, Survivors, and Disability Insurance. The 12.4% combined rate is split:
- 10.6% goes to the Old-Age and Survivors Insurance (OASI) Trust Fund — funds retirement and survivor benefits
- 1.8% goes to the Disability Insurance (DI) Trust Fund — funds SSDI benefits
Work Credits for Future Benefits
Every dollar of Social Security tax you pay builds your future benefit. In 2024, you earn 1 work credit per $1,730 in wages (up to 4 credits per year). You need 40 credits (10 years of work) to qualify for retirement benefits. Your benefit amount is calculated from your highest 35 years of indexed earnings.
Create a free account at SSA.gov to see your earnings history, estimated future benefit at different retirement ages, and verify your employer has been reporting your wages correctly. Errors are easier to fix if caught early.