2021 increase in Social Security annual wage base

The Social Security annual wage base for 2021 is $142,800, a $5,100 hike from 2020.

The Social Security tax rate on employers and employees stays pat at 6.2%. Both will continue to pay the 1.45% Medicare tax on all compensation, with no cap. Individuals also pay the 0.9% Medicare surtax on wages and self-employment income over $200,000 for singles and $250,000 for couples. The surtax doesn’t hit employers