The Social Security Administration (SSA) has announced that the 2023 Social Security wage base will be $160,200, an increase of $13,200 from the 2022 wage base of $147,000. The FICA tax rate will remain the same at 6.2% for the employee portion to match with the employer portion. The maximum Social Security tax that employees and employers will each pay in 2023 is $9,932.40. This is an increase of $818.40 from the 2022 maximum tax of $9,114.00.
There is no limit to wages subject to the Medicare Tax. All covered wages are still subject to the tax at 1.45%. When an employee reaches $200,000 an additional .9% of Medicare Tax will be withheld for the employee portion only. For State and Local Wage and Tax Information, please use this link.
If you have questions or require additional information, please contact the Penn Employee Solution Center at (215) 898-7372 or solutioncenter@upenn.edu.
2023 Tax Rates & Benefit Limitations
FICA Tax Rate
Employee: 6.2%
Employer: 6.2%
FICA Wage Base Limit: $160,200
Medicare Tax Rate
Employee: 1.45%
Employer: 1.45%
Employee Supplemental on wages over $200,000: 0.90%
Pennsylvania State Tax Rate
3.07%
Philadelphia City Wage Tax Rates
Resident:
3.79% – Effective July 1, 2022
3.75% – Effective July 1, 2023
Non-Resident:
3.44% – Effective July 1, 2022
No change to the non-resident rate in 2023