Year 2017 Income Tax Changes and Withholding Information

Effective January 2017
Federal Income Tax Withholding

The federal and state income withholding brackets have been revised for 2017. 

Employee Social Security /OASDI and Medicare

The year 2017 Social Security/OASDI tax rate for employees is 6.2 percent. The Medicare tax rate remains at 1.45 percent. The Social Security/OASDI maximum wage base increases to $127,200 for 2017. There continues to be no cap on the Medicare wage base.

Tax Summary                                                                   Year 2016                          Year 2017

Social Security/OASDI Rate                                          6.2 percent                         6.2 percent
Social Security Maximum Wage Base                          $118,500                             $127,200
Maximum Social Security /OASDI Contribution     $7,347.00                             $7,886.40
Medicare Rate                                                                   1.45 percent                       1.45 percent
Medicare Maximum Wage Base                                    No limit                            No limit
Maximum Medicare Contribution (1.45%)                 No limit                             No limit