The Social Security Administration has announced that the amount of taxable earnings will increase in 2025. The SSA announces an increase in the recipients’ cost-of-living adjustment (COLA) on an annual basis.
This annual increase in Social Security benefits is intended to prevent their value from declining year after year due to inflation. The COLA is also used to determine how much of a contributor’s income is subject to Social Security taxes.
Social Security earnings limit will increase as the SSA confirmed
While the 12.4% tax on workers’ wages remains in place, the maximum amount of labor income subject to taxation will rise in 2025. For Social Security to receive 12.4% of workers’ wages, both parties must contribute 6.2%.
The maximum amount of income subject to taxation has increased over time and will do so again in 2025, while the rate has remained constant since 1990. In 2025, the maximum income that can be taxed under Social Security will be $176,100.
Income above this threshold is not subject to Social Security taxes. The chart below shows that the maximum sum has gradually risen over the last ten years.
Year | Amount |
2015 | $118,500 |
2016 | $118,500 |
2017 | $127,200 |
2018 | $128,400 |
2019 | $132,900 |
2020 | $137,700 |
2021 | $142,800 |
2022 | $147,000 |
2023 | $160,200 |
2024 | $168,600 |
2025 | $176,100 |
It is important to note that employers who employ multiple people in a given year must deduct Social Security taxes from their employees’ paychecks. This implies that more taxes than the maximum amount may be withheld overall.
Employees who file tax returns and have more than the maximum amount of Social Security taxes withheld may qualify for a refund from the Internal Revenue Service (IRS).
Social Security beneficiaries could earn up to $4,995 in monthly checks this year.
According to the Social Security Administration, this year all beneficiaries of the retirement, survivor, and disability insurance (RSDI) and Supplemental Security Income (SSI) programs will receive a 2.5% increase as a result of the cost of living adjustment, which was recently confirmed on October 10th.
According to the new COLA increase, retirees will receive up to $4,995 in monthly benefits if they delay benefits until they reach 70 years old and pay payroll taxes based on their maximum taxable earnings.

Beneficiaries should be aware that in order to qualify for these maximum benefits, they must meet all of the SSA’s requirements; therefore, it is recommended that you consult with a financial advisor or Social Security expert to increase your chances of becoming eligible for this payment.
Finally, as Social Security expands beyond retirement benefits, other beneficiaries such as survivors, disabled people, and Supplemental Security Income (SSI) recipients will receive a 2.5% increase beginning January 3rd. To learn more about the new payment amounts available in 2025, please read the following information:
Survivor benefits | Monthly benefits | 2.5% COLA increase | Extra income |
On average | $1,505 | $1,543 | $38 |
Individual | $1,773 | $1,817 | $44 |
2 Children | $3,653 | $3,744 | $91 |
Disability benefits | Monthly benefits | 2.5% COLA increase | Extra income |
On average | $1,537 | $1,575 | $38 |
Blind recipients | $2,590 | $2,655 | $65 |
Maximum payment | $3,822 | $3,918 | $96 |
SSI benefits | Monthly benefits | 2.5% COLA increase | Extra income |
On average | $698 | $715 | $17 |
Individuals | $943 | $967 | $24 |
Couples | $1,415 | $1,450 | $35 |
Essential person | $472 | $484 | $12 |
When will Social Security beneficiaries receive their first increased payments this month?
As the SSA announced in the new Social Security payment schedule for 2025, all beneficiaries will begin receiving their increased benefits on January 3rd. On this day, RSDI program participants who applied for their first check before May 1997 will receive their benefits.
Following this payment date, the federal agency will deliver the remaining payments on the dates listed below:
- On January 8th, for survivors, retirees, and disabled Americans who were born between the 1st and the 10th and have additionally claimed benefits after May 1997
- On January 15th, for survivors, retirees, and disabled Americans who were born between the 11th and the 20th and have additionally claimed benefits after May 1997
- On January 22nd, for survivors, retirees, and disabled Americans who were born between the 21st and the 31st and have additionally claimed benefits after May 1997
- On January 31st, for eligible SSI recipients, since the first of February falls on a weekend.