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Home Publications Graphic Economics Workers Earning More and Less than the Social Security Payroll Tax Cap
Workers Earning More and Less than the Social Security Payroll Tax Cap Print

January 25, 2013

On January 1, the maximum amount of annual earnings subject to the Social Security tax – a.k.a. the payroll tax cap – was adjusted for inflation and increased to $113,700.  Income above the cap is not taxed by Social Security.  To help alleviate Social Security’s long-term budget shortfall, raising – or even eliminating – the cap has gotten some attention from policy makers. Just 1 in 20 workers would be affected if the cap were eliminated entirely, and only 1 in 75 would be affected if the cap were applied to earnings over $250,000.

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For more, check out the report, "Raising the Social Security Payroll Tax Cap: How Many Workers Would Pay More?"