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Social Security, Medicare, and Disability Insurance Maximum Taxable Earnings & Contribution Rates


Data are from the Social Security Act of 1935 (the Act), as amended through December 31, 2011; regulations issued under the Act; and precedential case decisions (ruling). (http://www.socialsecurity.gov/regulations/index.htm.)

  • This database shows the contribution rates used to determine total amounts received by the trust funds.Years reflect Calendar Years.
  • Annual maximum taxable earnings for OASDI from years 1975-1978, 1982-1989, and 1993-2012, is based on automatic adjustment, under legislation in 1972 (as modified by legislation in 1973), in proportion to increases in average wage level.
  • Annual maximum taxable earnings for HI, for years 1975-1978, 1982-1989, and 1993, is based on automatic adjustment, under legislation in 1972 (as modified by legislation in 1973), in proportion to increases in average wage level.
  • Contribution rates for employer and employee, each, for Total OASDI and HI, from year 1984, in 1984 the 5.7 percent OASDI tax on taxable wages of employees was offset by a tax credit of 0.3 percent, resulting in an effective employee tax rate of 5.4 percent. However, the OASDI trust funds received the full 5.7 percent because of a general revenue transfer equivalent to 0.3 percent of taxable wages. Similar credits of 2.7 percent, 2.3 percent, and 2.0 percent were allowed against the combined OASDI and HI taxes on net earnings from self-employment in 1984, 1985, and from 1986 to 1989, respectively.
  • Contribution rates for self-employed person, for Total OASDI and HI from 1984-1989 the 5.7 percent OASDI tax on taxable wages of employees was offset by a tax credit of 0.3 percent, resulting in an effective employee tax rate of 5.4 percent. However, the OASDI trust funds received the full 5.7 percent because of a general revenue transfer equivalent to 0.3 percent of taxable wages. Similar credits of 2.7 percent, 2.3 percent, and 2.0 percent were allowed against the combined OASDI and HI taxes on net earnings from self-employment in 1984, 1985, and from 1986 to 1989, respectively.
  • Annual maximum taxable earnings for OASDI from 1990-1992 is based on automatic adjustment, under legislation in 1972 (as modified by legislation in 1973), using a transitional rule, specified by the Omnibus Budget Reconciliation Act (OBRA) of 1989, for computing a "deemed" average annual wage for 1988, 1989, and 1990.
  • Annual maximum taxable earnings for HI from year 1990 is based on automatic adjustment under legislation in 1972 (as modified by legislation in 1973), using a transitional rule, specified by the Omnibus Budget Reconciliation Act (OBRA) of 1989, for computing a "deemed" average annual wage for 1988, 1989, and 1990.
  • Annual maximum taxable earnings for HI for year 1991 are based on legislation in 1990.
  • Annual maximum taxable earnings for HI for years 1994-2012 is upper limit on earnings subject to HI taxes was repealed by OBRA 1993.
  • Contribution rates for employer and employee, each, for Total, OASDI and HI, for 2010 most employers were exempt from paying the employer share of OASDI tax on wages paid to certain qualified individuals hired after February 3. Amounts equal to the revenue forgone will be transferred from the general fund of the Treasury to the OASI and DI trust funds.
  • Contribution ratesfor employer and employee for Total OASDI and HI for years 2011-2012 was reduced by 2.0 percent for employees and for self-employed workers, resulting in a 4.2 percent effective tax rate for employees and a 10.4 percent effective tax rate for self-employed workers. The authorizing legislation does not specify percentage reductions attributable to the separate OASI and DI trust funds. Amounts equal to the revenue forgone will be transferred from the general fund of the Treasury to the trust funds.
  • Contribution rates for self-employed persons for Total OASDI and HI for years 2011-2012 was reduced by 2.0 percent for employees and for self-employed workers resulting in a 4.2 percent effective tax rate for employees and a 10.4 percent effective tax rate for self-employed workers. The authorizing legislation does not specify percentage reductions attributable to the separate OASI and DI trust funds. Amounts equal to the revenue forgone will be transferred from the general fund of the Treasury to the trust funds.
  • See Social Security Administration, Annual Statistical
  • Supplement to the Social Security Bulletin (http://www.ssa.gov/policy/docs/statcomps/supplement/), for additional information.