Title: Contribution and Benefit Base. URL Source: https://www.ssa.gov/OACT/COLA/cbb.html. Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The same annual limit also applies when those earnings are used in a benefit computation. This limit changes each year with changes in the national average wage index. Contribution and benefit base table. Year 2024: $168,600. Note: Amounts for 1978 through 1990 are legislated amounts. All other amounts are determined under automatic adjustment provisions of the Social Security Act.

Title: Contribution and Benefit Base Determination. URL Source: https://www.ssa.gov/OACT/COLA/cbbdet.html. Method for determining the base. The formula for determining the OASDI contribution and benefit base is set by law. The formula is applicable only if a cost-of-living increase becomes effective for December of the year in which a determination of the base would ordinarily be made. Because there is a cost-of-living increase for December 2025, the formula is applicable. The formula states that the base for any year Y after 1994 is equal to the 1994 base of $60,600 multiplied by the ratio of the national average wage index for year (Y-2) to that for 1992, with the result rounded to the nearest multiple of $300. If the result is less than the current base, the base is not reduced. Base for 2026. Under the above formula, the base for 2026 shall be the 1994 base of $60,600 multiplied by the ratio of the national average wage index for 2024 to that for 1992, or, if larger, the 2025 base of $176,100. If the amount so determined is not a multiple of $300, it is rounded to the nearest multiple of $300. Calculation details. Amounts in formula. 1994 base $60,600. 1992 average wage index 22,935.42. 2024 average wage index 69,846.57. Computation $60,600 times 69,846.57 divided by 22,935.42 equals $184,548.71, which rounds to $184,500. Higher amount $184,500 exceeds the base for 2025, so the base for 2026 is $184,500.