One key aspect of funding the Social Security program is the payroll tax that workers pay. The current
rate is 6.2% for both employees and employers, but it is capped based on annual earnings. For 2025, the
maximum taxable earnings will increase to $176,100, up from $168,000 in 2024.
This means that higher-income workers will contribute more to the program, ensuring that Social Security continues to have
enough funding to support beneficiaries.
The increase in the taxable earnings cap reflects overall wage trends and is designed to keep the Social
Security program financially stable. While only the first $176,100 of income will be taxed for Social
Security, this adjustment ensures that the program continues to benefit from contributions that align with
the growth of the national economy, which in turn helps maintain the program’s long-term viability.