The Social Security Administration (SSA) has announced that the maximum earnings subject to the Social Security component of the FICA tax will increase from $160,200 to $168,600. For 2023, the maximum Social Security tax that employers and employees will each pay is $10,453 ($168,600 x 6.2%).

Also, based on the increase in inflation measured in the Consumer Price Index (CPI-W) from the third quarter of 2022 through the third quarter of 2023, Social Security and Supplemental Security Income (SSI) recipients will receive a 3.2% cost of living adjustment (COLA) for 2024.

This Cost-of-Living Adjustment (COLA) will take effect at the end of 2023 or January 2024 for the roughly 71 million recipients. Other 2023 COLAs announced by the SSA are available at

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