Why Millionaires Don't Have to Pay Any More Social Security Taxes This Year
By:
Adam Hardy
Adam Hardy
Lead data journalist | Joined May 2024
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Editor:
Brad Tuttle
Brad Tuttle
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As of this week, Americans earning $1,000,000 have already finished paying their share of Social Security taxes for the year, according to a new report. Any future paychecks for those million-dollar earners in 2023 won’t see deductions for Social Security.
By contrast, the vast majority of employees must contribute to the social safety net program throughout the entire year. This scenario is due to a lesser-known provision called the Social Security tax cap.
What the research says
A new analysis of the Social Security tax cap by the left-leaning Center for Economic and Policy Research highlights the fact that those who earn $1,000,000 salaries stopped paying Social Security payroll taxes on Feb. 28 this year.
