Social Security COLA Increase

Cross References

• www.ssa.gov

The Social Security Administration has announced that Social Security and Supplemental Security Income (SSI) benefits will increase by 8.7% for 2023. The chart below identifies key figures that are affected by the annual Cost-of-Living Adjustment (COLA) for the years 2021 through 2023.

Social Security and Medicare Highlights

Social Security Benefits (COLA) increase. 8.7% 5.9% 1.3% Maximum earnings subject to Social Security tax $160,200.00 $147,000.00 $142,800.00 Medicare tax No Limit No Limit No Limit Maximum Social Security tax Employee $9,932.40 $9,114.00 $8,853.60 Self-employed $19,864.80 $18,228.00 $17,707.20 Maximum Medicare tax No Limit No Limit No Limit Social Security tax rate Employee 6.20% 6.20% 6.20% Self-employed 12.40% 12.40% 12.40% Medicare tax rate 5 Employee 1.45% 1.45% 1.45% Self-employed 2.90% 2.90% 2.90% Earnings needed for one quarter of coverage. $1,640.00 $1,510.00 $1,470.00 Maximum earnings and still receive full Social Security benefits. Under full retirement age 1 $21,240.00 $19,560.00 $18,960.00 Year of full retirement age $56,520.00 $51,960.00 $50,520.00 2 Full retirement age No Limit No Limit No Limit 3 Maximum Social Security monthly benefits at full $3,627.00 $3,345.00 $3,148.00 retirement age. Medicare premiums 4 Part A (per month) $506.00 $499.00 $471.00 Part B (per month) $164.90 $170.10 $148.50 Hospital deductible $1,600.00 $1,556.00 $1,484.00 $1 in benefits is withheld for every $2 in earnings above High income taxpayers may be subject to 1 4 limit. higher premiums. Applies only to earnings for months prior to attaining Medicare tax rate increases by 0.9% on wages 2 5 full retirement age. $1 in benefits is withheld for every and SE income above the threshold amount, $3 in earnings above the limit. plus 3.8% on unearned income above the A person born in 1955 will reach full retirement age in threshold amount. 3 2021 or 2022 at age 66 and 2 months. A person born in 1956 will reach full retirement age in 2022 or 2023 at age 66 and 4 months. A person born in 1957 will reach full retirement age in 2023 or 2024 at age 66 and 6 months.