2022 Social Security Wage Base
For 2022, the Social Security Wage Base is $147,000 (Wage base limit) and 6.2% (Employee social security tax rate).
Effective 2022-01-01Source: Publication 15 (2022), (Circular E), Employer's Tax Guide (IRS)Verified 2026-08-29
Compared with 2021
| Item | 2021 | 2022 | Change |
|---|---|---|---|
| Wage base limit | $142,800 | $147,000 | +$4,200 (+2.9%) |
| Employee social security tax rate | 6.2% | 6.2% | +0% (+0.0%) |
Who it applies to
Employees and employers subject to Social Security tax
What changed this year, and why
The Social Security wage base limit for 2022 is $147,000. This is the maximum amount of wages subject to the Social Security tax for the year. The employee's share of the social security tax is 6.2% of wages up to that limit, and the employer is charged the same rate on the same wages.
Common questions
- What is the Social Security wage base limit?
- The wage base limit is the maximum amount of wages subject to the Social Security tax for the year. Wages earned above this limit are not subject to the Social Security tax.
- What is the Social Security tax rate for 2022?
- The social security tax rate is 6.2% each for the employer and the employee, and for 2022 it is charged on wages up to the wage base limit of $147,000. Wages above that limit in the same year carry no further social security tax. Medicare tax is charged separately and has no wage base limit, so it keeps applying above $147,000.
Only social security has a wage base
Social Security and Medicare taxes both apply to employee wages, but they work differently when it comes to the cap on taxable earnings. Medicare tax has no ceiling: every dollar of wages is subject to the Medicare tax rate no matter how much an employee earns during the year. Social Security tax, by contrast, stops applying once wages reach a specific dollar amount. For 2022, that social security wage base limit is $147,000. Wages above that threshold are not subject to the Social Security tax, though they remain subject to Medicare tax. This means an employee who earns more than $147,000 pays Social Security tax only on the first $147,000 of those wages. The limit is applied per calendar year and per employer unless a successor employer situation applies. Employers must track each worker's year-to-date wages to know when to stop withholding the employee share and stop paying the employer share of the tax.
Social security and Medicare taxes have different rates and only the social security tax has a wage base limit. The wage base limit is the maximum wage subject to the tax for the year.
Publication 15 (2022), (Circular E), Employer's Tax Guide (IRS)
An acquisition does not restart the limit
When a business is acquired through a corporate acquisition, statutory merger, or consolidation, the new employer may be treated as a successor employer. If certain requirements are met, the wages that the predecessor employer paid to employees during the calendar year are counted as if the successor had paid them. This means the social security wage base does not restart at zero when the employee transitions to the new employer. For 2022, the social security wage base is $147,000. Whatever portion of that limit the predecessor already used up by paying wages to the employee is credited against the limit for the successor. So the successor only applies social security tax on wages up to the remaining amount of the $147,000 wage base. This prevents employees from having social security tax withheld on wages that fall under the limit but are split between two employers during the same calendar year.
Successor employer. When corporate acquisitions meet certain requirements, wages paid by the predeces- sor are treated as if paid by the successor for purposes of applying the social security wage base and for applying the Additional Medicare Tax withholding threshold (that is, $200,000 in a calendar year).
Publication 15 (2022), (Circular E), Employer's Tax Guide (IRS)
When the employer pays the employee's share
Sometimes an employer chooses to pay the employee's share of social security and Medicare taxes rather than withholding those amounts from the employee's wages. When the employer pays the employee's portion of these taxes, that payment itself is treated as additional wages to the employee. This means the amount the employer pays on behalf of the employee becomes subject to social security and Medicare taxes. The $147,000 social security wage base limit for 2022 applies to the total wages including the employer-paid employee share. So if an employer pays the employee's social security and Medicare taxes, those payments increase the employee's total taxable wages, which could push the employee closer to or past the $147,000 wage base limit. The employer must still track the cumulative wages to determine when the wage base limit is reached and stop applying social security tax at that point. The employer's own share of social security and Medicare taxes is separate and is always deductible as a business expense.
You can collect these taxes from the employee's wages (excluding tips) or from other funds he or she makes avail- able.
Publication 15 (2022), (Circular E), Employer's Tax Guide (IRS)
Household employers
Household employees are workers who perform domestic services in a private home, such as babysitting, cleaning, or cooking. Social security and Medicare taxes apply to wages paid to household employees, but the threshold for coverage is different from regular business employees. For 2022, if an employer pays total cash wages of $2,400 or more to a household employee during the calendar year, those wages are subject to social security and Medicare taxes. The $147,000 social security wage base limit applies to household employees the same way it applies to other workers: once the household worker's wages reach $147,000 for the year, social security tax no longer applies to additional wages, though Medicare tax continues on all wages. However, there is an age-based exemption: if the household employee is under age 18 during any portion of the calendar year and household work is not their principal occupation, the wages are exempt from social security and Medicare taxes. The employer must withhold the employee's share and pay the matching employer share of these taxes on wages that meet the threshold.
Household employees: 1. Domestic service in private homes. Exempt (withhold if both employer and employee agree). Taxable if paid $2,400 or more in cash in 2022. Exempt if performed by an individual under age 18 during any portion of the calendar year and isn't the principal occupation of the employee.
Publication 15 (2022), (Circular E), Employer's Tax Guide (IRS)
Who counts as an employee
Under common law rules, a worker is generally considered an employee if the employer has the right to control what work is done and how it is done. This control test applies regardless of the specific details of how or when the work is performed. When a worker qualifies as a common-law employee, the employer must withhold social security and Medicare taxes from their wages and pay the matching employer share. For 2022, the social security wage base limit is $147,000, meaning social security tax applies only to wages up to that amount, while Medicare tax applies to all wages without a limit. If a worker does not meet the common-law employee definition, they may still be treated as an employee by statute for social security and Medicare tax purposes under certain conditions. For example, certain agent drivers, commission drivers, full-time life insurance salespersons, and homeworkers may be statutory employees even if they are not common-law employees. The key point is that the common-law definition determines whether someone is an employee for tax purposes, and this status triggers withholding and payment obligations on wages up to the $147,000 wage base for social security tax.
Statutory employees. If someone who works for you isn't an employee under the common law rules discussed earlier, don't withhold federal income tax from his or her pay, unless backup withholding applies. Although the fol- lowing persons may not be common law employees, they’re considered employees by statute for social secur- ity and Medicare tax purposes under certain conditions.
Publication 15 (2022), (Circular E), Employer's Tax Guide (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Publication 15 (2022), (Circular E), Employer's Tax Guide (IRS)
- Wage base limit
For 2022, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% to- tal). The social security wage base limit is $147,000.
- Employee social security tax rate
For 2022, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% to- tal).