Cost-of-Living Adjustment (COLA): Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2014 through the third quarter of 2016, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 0.3 percent cost of living adjustment for 2017.
<p “=””>The 2017 tax rate for Social Security and Medicare Taxes remain unchanged at 7.65%. (Social Security tax is 6.2% and the Medicare tax is 1.45%). For self employed individuals the amount is double 15.3%.
The maximum taxable amount of earnings subject to Social Security tax increases to $127,200.
<p “=””>There is no income limit on earnings subject to Medicare taxes.<p “=””>Individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. This rate and threshold remains unchanged.
<p “=””>Here is a link to the complete fact sheet released by the Social Security Administration.