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 2.5% for 2025. The chart below identifies key figures that are affected by the annual cost-of-living adjustment (COLA) for the years 2023 through 2025.

Social Security and Medicare Highlights

Social Security Benefits (COLA) increase. 2.5% 3.2% 8.7% Maximum earnings subject to Social Security tax $176,100.00 $168,600.00 $160,200.00 Medicare tax No Limit No Limit No Limit Maximum Social Security tax Employee $10,918.20 $10,453.20 $9,932.40 Self-employed $21,836.40 $20,906.40 $19,864.80 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. $1,810.00 $1,730.00 $1,640.00 Maximum earnings and still receive full Social Security benefits. Under full retirement age 1 $23,400.00 $22,320.00 $21,240.00 Year of full retirement age $62,160.00 $59,520.00 $56,520.00 2 Full retirement age No Limit No Limit No Limit 3 Maximum Social Security monthly benefits at full $4,018.00 $3,822.00 $3,627.00 retirement age. Medicare premiums 4 Part A (per month) $505.00 $506.00 Part B (per month) $174.70 $164.90 Hospital deductible $1,632.00 $1,600.00 $1 in benefits is withheld for every $2 in earnings above limit. The Department of Health and Human 1 4 2 Applies only to earnings for months prior to attaining full Services has not yet announced Medicare retirement age. $1 in benefits is withheld for every $3 in premium changes for 2025. Standard earnings above the limit. monthly premiums are listed for 2023 A person born in 1956 reached full retirement age in 2022 or and 2024. High income taxpayers may be 3 2023 at age 66 and 4 months. A person born in 1957 reached subject to higher premiums. full retirement age in 2023 or 2024 at age 66 and 6 months. Medicare tax rate increases by 0.9% 5 A person born in 1958 will reach full retirement age in 2024 on wages and SE income above the or 2025 at age 66 and 8 months. A person born in 1959 will threshold amount, plus 3.8% on unearned reach full retirement age in 2025 or 2026 at age 66 and 10 income above the threshold amount. months.