Maximum Taxable Earnings

When you have wages or self-employment income that is covered by Social Security, you pay Social Security taxes each year up to a maximum amount that is set by law. That amount has changed frequently over the years. The maximum earnings for each year since Social Security taxes were first collected in 1937 are shown below.

For 2008, the maximum amount is $102,000.

If you earned more than the maximum in any year but had only one job, the amount shown in the "Your Taxed Social Security Earnings" column will be just the maximum amount. If you had more than one job, the total that is recorded may be more than the maximum. However, only the maximum amount will be used to calculate your benefit estimates.

NOTE: When you have more than one job in a year, each of your employers must withhold Social Security taxes on your wages without regard to what the other employers may have withheld. You may then end up with total Social Security taxes withheld that exceed the maximum.

Example: In 2008, you work at company A and earn $60,000. At company B, you earn $50,000. Together, Social Security taxes on $110,000 would be withheld for the year, but the maximum taxable earnings for 2008 are only $102,000. You can claim a refund of the excess taxes that would be withheld when you file your 2008 personal income tax return with the Internal Revenue Service.


Maximum Covered Earnings Each Year
1937 - 50 1951 - 54 1955 - 58 1959 - 65 1966 - 67 1968 - 71 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987	$ 3,000 3,600 4,200 4,800 6,600 7,800 9,000 10,800 13,200 14,100 15,300 16,500 17,700 22,900 25,900 29,700 32,400 35,700 37,800 39,600 42,000 $43,800		1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008	45,000 48,000 51,300 53,400 55,500 57,600 60,600 61,200 62,700 65,400 68,400 72,600 76,200 80,400 84,900 87,000 87,900 90,000 94,200 97,500 102,000


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