Highly-paid wage earners will see a moderate increase in the wage base on which Social Security taxes are due for 2006. . . The 2006 wage base of $94,200 is $4,200 higher than the 2005 amount, and the maximum additional Social Security tax that might be collected on someone earning above the 2005 wage base is $260.40. This is the largest increase since 2002 in both dollars and in percentage, and reflects the largest increase in national average wages since 2000.. . . The wage base for 2006 is $1,200 more than the highest estimated increase published in the 2005 Annual Report of the Board of Trustees of the Federal OASDI Trust Funds issued in March of this year. The 2006 wage base reflects national average wages for 2004, the variable upon which the 2006 wage base formula is based. The 2004 national average wage index of $35,648.55 is 4.65 percent higher than the 2003 national average wage index, the highest increase since 2000.
More here on the increase from the Social Security Administration‘s website.