Twelve million workers will pay more this year because of the automatic adjustment in their payroll taxes for the taxable maximum amount of Social Security. The increase in 2017 is 7.3 percent, the most in 34 years. It can cost up to $539, and double that if you are self-employed.
For the last two years, only the first $118,500 of earnings was subject to the 6.2 percent tax. In 2017, this taxable minimum jumps to $127,200.
If you make less than $118,500, there won’t be an increase in tax. But if you earn more, the extra $8,700 will be subject to the 6.2 percent Social Security payroll tax and this will cost you as much as $539 and $1,078 if you are self-employed, by the end of the year.
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