Bad News on 2017 Social Security Taxes
For those earning a six-figure income, 2017 Social Security taxes will put an extra pinch on their wallets.
With Social Security obligations increasing every year, Social Security Administration must raise the ceiling on the taxable income from time to time. Not all years see an increase in taxation. 2016 was one such year and the Social Security tax burden remained the same as 2015, 6.2% for earnings up to $118,500.
In 2017 the tax rate has remained at 6.2%, however there is a big jump of $8,700 in the taxable earnings. That means individuals earning $118,000 or more will be taxed progressively more up to an income of $127,200 where Social Security tax is capped and is $540 more in 2017 than that in 2016.
Not all news is bad though in 2017. Medicare tax rate remains the same at 1.45% and it is applied to all earnings as it has been previously.
Here’s the official information page from the Social Security Administration.