2018 Social Security Cost-of-Living Adjustment (article)
The Social Security Administration announced a 2.0 percent cost of living adjustment for 2018.
The Social Security wage base in 2018 will increase to $128,700 from the 2017 wage level of $127,200. The combined Social Security and Medicare tax rate remains at 7.65% - the Social Security portion is 6.2% on wages up to the applicable maximum taxable amount; the Medicare portion is 1.45% on all wages.
As a reminder, the Affordable Care Act imposes an additional 0.9% Medicare tax on high wage earners, applicable on earnings in excess of $200,000 in a calendar year.
Additional adjustments are included in the SSA’s Fact Sheet: 2018 Social Security Cost-of-Living Adjustments.
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