Elon Musk, the world’s first trillionaire, has a net worth of $1.2 trillion, but his Social Security taxes are capped at the same amount as someone making $184,500. This is because Social Security taxes are only imposed on income up to a certain maximum, which is $184,500 in 2026.

Social Security Tax Rules

Social Security taxes are paid through payroll deductions, with workers and employers each paying 6.2% of the worker’s income into Social Security, up to the cap. This means that the maximum Social Security tax liability in 2026 for someone earning $184,500 or more is $11,439. Self-employed individuals must pay the full 12.4% rate on their income, so their Social Security taxes would max out at $22,878.

However, since Musk’s income is heavily weighted toward stocks, it’s unclear what his liability for Social Security taxes is each year. His major payroll tax liability in recent years has come from exercising stock options that were paid as compensation. In 2021, he exercised an option to buy Tesla stock at a major discount, resulting in more than $20 billion in taxable income.

Sen. Bernie Sanders has called for changes to the Social Security tax rules, proposing to eliminate the cap on Social Security taxes over $250,000 and apply the full Social Security payroll tax to more forms of income, including capital gains. Sanders’ spokesperson said that his proposal aims to address wealth inequality and ensure that the wealthy pay their fair share of taxes.

Original reporting: NBC6 Miami — read the source article.