Social Security taxes are regressive taxes, meaning lower earners have larger portions of total withheld income than higher earners. For example, person X, who earns $175,000 annually, pays about $7,885 in Social Security tax, approximately 4.5 percent. Person Y earns $85,000 annually, so their tax rate is about 6 percent. People with incomes low enough to be exempt from federal income taxes will still have Social Security deductions.
Receive updates on the latest news and alerts straight to your inbox.
This site offers information designed for educational purposes only. The information on this Website is not intended to be comprehensive, nor does it constitute advice or our recommendation in any way. We attempt to ensure that the content is current and accurate but we do not guarantee its currency and accuracy. You should carry out your own research and/or seek your own advice before acting or relying on any of the information on this Website.