2019 Social Security Cost-of-Living Adjustment (article)
On October 11, 2018, the Social Security Administration announced a 2.8 percent cost of living adjustment for 2019.
The Social Security wage base in 2019 will increase to $132,900, from the 2018 wage level of $128,400. 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. The Internal Revenue Service provides a set of FAQs explaining the additional tax.
Additional adjustments are included in the SSA’s Fact Sheet: 2019 Social Security Cost-of-Living Adjustments.