Ullmann & Company, PC
Social Security Wage Base Increases to $128,400 for 2018

The Social Security Administration announced that the 2018 maximum wage base for the Social Security portion of FICA and the Self-Employment Tax will increase from $127,200 in 2017 to $128,400 in 2018.  The increase of $1,200 over last yearís amount comes after an $8,700 increase from 2016 to 2017. 
 
The Social Security Administrationís intermediate forecast predicts that the maximum wage base through 2026 will be as follows:
  • 2019 - $135,600
  • 2020 - $142,200
  • 2021 - $148,500
  • 2022 - $155,100
  • 2023 - $161,700
  • 2024 - $168,000
  • 2025 - $174,300
  • 2026 - $180,900

Actual annual increases to the wage base are announced in October of the preceding year and are based on then-current economic conditions.  As a result, these forecasts, especially the longer-range ones, are subject to change.  This year, the intermediate forecast projected that the Social Security wage base would be $130,500 in 2018; the approved figure turned out to be $128,400 as noted above.


Sources:  Social Security Administration: Updated 2018 Taxable Maximum Amount Announced, Parker's Federal Tax Bulletin (October 16, 2017), 2017 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds. 


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4647 N. 32nd Street
Suite 220
Phoenix, AZ 85018
(602) 224-0166
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