When Does Social Security Stop Coming Out of Your Check?
Understand the annual income limit that stops Social Security tax deductions from your paycheck and how this rule applies to various employment scenarios.
Many employees notice a Social Security tax deduction on their paychecks and may wonder if it ever stops. This deduction is a standard part of payroll withholding, but it is not limitless. There is a specific income threshold set each year, and once an employee’s earnings surpass this amount, the Social Security tax deduction ceases for the rest of the calendar year.
The Social Security Wage Base Limit
The annual “wage base limit” is the maximum amount of earnings subject to Social Security tax for a given year. For 2025, the Social Security wage base limit is $176,100. Once your year-to-date gross earnings reach this figure, your employer will stop deducting the Social Security portion of payroll taxes from your pay for the remainder of the year.
This limit is not static; the Social Security Administration (SSA) adjusts it almost every year based on changes in the national average wage index, so the threshold typically increases annually. For example, if you earn $200,000 per year, you will have Social Security tax withheld from your paychecks until you have been paid $176,100. After that point within the same calendar year, your net pay will increase because this tax is no longer being taken out.
The maximum Social Security tax an employee would pay in 2025 is $10,918.20, which is calculated as 6.2% of the $176,100 wage base. Any earnings above this limit are not subject to the Social Security tax. This structure directly impacts higher-income earners, who will see a bump in their take-home pay partway through the year.
Understanding Your Paycheck Deductions
It is common to see a single line item on a paystub labeled “FICA,” which can cause confusion when the Social Security tax stops. FICA, the Federal Insurance Contributions Act, is composed of two distinct taxes: Social Security and Medicare. The Social Security tax, officially known as Old-Age, Survivors, and Disability Insurance (OASDI), is withheld at a rate of 6.2% for employees and is the tax subject to the annual wage base limit.
The second component of FICA is the Medicare tax, which is withheld at a rate of 1.45% for employees. Unlike the Social Security tax, there is no wage base limit for Medicare tax. This means the 1.45% Medicare tax will be deducted from all of your wages throughout the entire year, no matter how much you earn.
Therefore, even after your earnings have exceeded the $176,100 limit for 2025 and the Social Security tax stops, you will continue to see a deduction for the 1.45% Medicare tax. Some high earners may also be subject to an Additional Medicare Tax of 0.9% on wages over $200,000, but this does not have an employer match. This is why your FICA tax deduction will decrease, but not disappear entirely, once you pass the annual Social Security threshold.
Scenarios for Multiple Employers
A different situation arises for individuals who work for more than one employer in a single year. Each employer is required to withhold Social Security tax up to the annual wage base limit, without regard to what another employer has paid you. This can lead to an overpayment of Social Security taxes if your combined income from all jobs exceeds the limit, but your income from each individual job does not.
For instance, if you worked for two different companies in 2025, earning $100,000 from each, both employers would withhold the 6.2% Social Security tax on your full earnings. This results in tax being paid on a total of $200,000 in wages, which is more than the $176,100 limit. You can identify this overpayment by adding together the amounts shown in Box 3, “Social Security wages,” on your W-2 forms.
If you have overpaid Social Security tax, you can claim a refund for the excess amount by reporting it as a credit on your federal income tax return, Form 1040. The excess withholding is treated as a payment toward your federal income tax liability, which can increase your refund or lower the amount you owe.
Considerations for Self-Employed Individuals
The rules for the Social Security wage limit also apply to self-employed individuals, though the payment mechanism is different. Instead of FICA taxes, self-employed people pay Self-Employment (SECA) tax. SECA tax covers both the employee and employer portions of Social Security and Medicare taxes, resulting in a total Social Security rate of 12.4% and a Medicare rate of 2.9%.
The same annual Social Security earnings limit applies. For 2025, a self-employed individual pays Social Security tax only on the first $176,100 of their net earnings from self-employment. The Medicare portion of the SECA tax applies to all net earnings without any limit.
Self-employed individuals calculate their SECA tax liability using Schedule SE (Form 1040), Self-Employment Tax. The result is then reported on their personal Form 1040 tax return.