The Social Security Tax Cap Kicks in at This Salary Figure in 2021

Some people are investing in their retirement without even realizing it.

If you have a traditional job, you pay 6.2% of your salary per year in Social Security taxes. That number is then matched by your employer.

But there's a cap on how much money people are expected to contribute every year.

In 2021, you will pay Social Security taxes on all of your income up to $142,800. That is a $5,100 increase from the 2020 wage-based cap.

Check out this video for a full breakdown of what that means for your paycheck.

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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

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