The Social Security Administration released a fact sheet showing the updated FICA max and Cost-of-Living Adjustment (COLA) for 2022.
The maximum amount of earnings subject to Social Security Tax is $147,000 for 2022. The maximum FICA tax imposed will be $9,114 ($147,000 x 6.2%), and there is no cap on the 1.45% Medicare tax. Self-employed taxpayers pay both the employer and employee portion.
The COLA for recipients is 5.9% for 2022, which is the highest adjustment since 1982. In 2021, the FICA max was $142,800 and the maximum FICA tax imposed was $8,843.