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 3.2% for 2024. The chart below identifies key figures that are affected by the annual Cost-of-Living Adjustment (COLA) for the years 2022 through 2024.

Social Security and Medicare Highlights

Social Security Benefits (COLA) increase. 3.2% 8.7% 5.9% Maximum earnings subject to Social Security tax $168,600.00 $160,200.00 $147,000.00 Medicare tax No Limit No Limit No Limit Maximum Social Security tax Employee $10,453.20 $9,932.40 $9,114.00 Self-employed $20,906.40 $19,864.80 $18,228.00 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. $1,730.00 $1,640.00 $1,510.00 Maximum earnings and still receive full Social Security benefits. Under full retirement age 1 $22,320.00 $21,240.00 $19,560.00 Year of full retirement age $59,520.00 $56,520.00 $51,960.00 2 Full retirement age No Limit No Limit No Limit 3 Maximum Social Security monthly benefits at full $3,822.00 $3,627.00 $3,345.00 retirement age. Medicare premiums 4 Part A (per month) $506.00 $499.00 Part B (per month) $164.90 $170.10 Hospital deductible $1,600.00 $1,556.00 $1 in benefits is withheld for every $2 in earnings above The Department of Health and Human Services 1 4 limit. has not yet announced Medicare premium Applies only to earnings for months prior to attaining changes for 2024. Standard monthly premiums 2 full retirement age. $1 in benefits is withheld for every are listed for 2022 and 2023. High income $3 in earnings above the limit. taxpayers may be subject to higher premiums. 3 A person born in 1956 will reach full retirement age in 5 Medicare tax rate increases by 0.9% on wages 2022 or 2023 at age 66 and 4 months. A person born in and SE income above the threshold amount, 1957 will reach full retirement age in 2023 or 2024 at age plus 3.8% on unearned income above the 66 and 6 months. A person born in 1958 will reach full threshold amount. retirement age in 2024 or 2025 at age 66 and 8 months.