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 https://www.ssa.gov/news/press/releases/2023/#10-2023-2
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