4. Some people will pay more in Social Security taxes
In 2016, most workers will pay 6.2% in Social Security tax on the first $118,500 they earned. Next year, you’ll have to pay taxes on the first $127,200 of income. The $8,700 jump is the biggest ever in Social Security history. It works out to a tax increase of $539.40 for anyone whose income hits or exceeds the cap.
The increase isn’t totally unexpected. Changes in the wage base are tied by law to national wage growth, but the wage base doesn’t increase if there’s no COLA in a given year. Since there was no COLA in 2016, the 2017 wage base adjustment reflects two years of wage growth, the Motley Fool explained.