On Oct. 18, the Social Security Administration announced that the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase from $118,500 to $127,200 for 2017.

Of the estimated 173 million workers who will pay Social Security taxes in 2017, about 12 million will pay more because of the hike in the taxable maximum.

Workers pay the tax at a rate of 6.2% of earnings.

Employers, who also pay a 6.2% tax on eligible wages, will also pay more.

The increase, which is tied to growth in average wages, takes effect in January.

According to a report in The Wall Street Journal, the 7.3% increase is the biggest one-year jump in the taxable maximum since 1983.

The SSA also announced a 0.3% bump in Social Security and Supplemental Security Income payments for 2017.