FICA takes a fixed percentage from each paycheck

FICA (Federal Insurance Contributions Act) removes 15.3% of your wages total — but you and your employer split it. If you are an employee, you pay 7.65% from your paycheck, and your employer pays the other 7.65%. That 7.65% breaks into two parts: 6.2% for Social Security and 1.45% for Medicare.

The amount that actually comes out of your paycheck depends on your gross income — the total you earn before taxes. If you earn $1,000 in a week, FICA takes roughly $76.50 from your check. If you earn $2,000, it takes roughly $153. The percentage stays the same; the dollar amount scales with what you make.

If you are self-employed, you pay both the employee and employer share yourself — 15.3% total — because there is no employer to split the cost with. You report this on Schedule SE when you file taxes.

Key Takeaways

  • Employees pay 7.65% of gross wages to FICA; employers pay another 7.65% on top of your salary.
  • The 7.65% employee share splits into 6.2% for Social Security and 1.45% for Medicare.
  • Self-employed workers pay the full 15.3% themselves because they have no employer to share the cost.
  • FICA is withheld from every paycheck based on your gross income, not your take-home pay.

Social Security and Medicare each take a different cut

The 7.65% you pay as an employee is not one flat tax. Social Security takes 6.2% of your wages up to a wage cap. That cap changes each year — in 2024 it was $168,600, meaning once you earn that much in a calendar year, Social Security stops taking 6.2% from the rest of your income. Medicare, by contrast, takes 1.45% of all your wages with no cap, so high earners keep paying Medicare tax on every dollar they make.

This is why someone earning $50,000 pays Social Security tax on the full amount, but someone earning $200,000 pays Social Security tax only on the first $168,600 (or whatever that year's cap is) and then pays only the Medicare portion on the remaining $31,400.

High earners pay an extra Medicare tax

If your income exceeds a threshold, you pay an additional 0.9% Medicare tax on the amount over that threshold. For single filers in 2024, the threshold was $200,000; for married filing jointly, it was $250,000. This extra tax is withheld from your paycheck if you cross the threshold, and it applies to wages, self-employment income, and certain investment income.

Your employer does not pay this extra 0.9% — it comes entirely from your paycheck. If you are self-employed, you owe it on your net self-employment income above the threshold.

How to find your FICA withholding on your pay stub

Your pay stub shows FICA broken down into at least two lines: one for Social Security (often labeled "OASDI" or "Social Security") and one for Medicare. Some pay stubs also show the additional Medicare tax as a separate line if you earn above the threshold. The amounts listed are what your employer withheld from that paycheck.

Add up the Social Security and Medicare lines to see your total FICA withholding for that pay period. Multiply by the number of pay periods in a year (26 for biweekly, 24 for semimonthly, 12 for monthly) to estimate your annual FICA cost. Your W-2 form at the end of the year will show the total FICA you paid for the entire year in boxes 4 and 6.

FICA withholding does not change based on your tax filing status

Unlike federal income tax withholding, which you can adjust by filing a new W-4 form, FICA withholding is automatic and fixed. You cannot reduce it, defer it, or claim exemptions from it. Every employee and self-employed person pays the same percentage on the same income, regardless of whether they are single, married, have dependents, or claim any deductions.

The only way FICA withholding changes is if your income changes or if you cross the Social Security wage cap or the additional Medicare threshold. Your employer calculates it the same way every pay period based on your gross wages.

What happens to the money you pay into FICA

The Social Security portion (6.2%) funds the Social Security program, which pays retirement benefits, disability benefits, and survivor benefits. The Medicare portion (1.45%, plus any additional Medicare tax) funds the Medicare program, which covers hospital insurance, medical insurance, and prescription drug coverage for people 65 and older and some younger people with disabilities.

These are not savings accounts in your name. The money you pay in this year goes to current beneficiaries. When you reach retirement age or become disabled, your benefits come from what current workers pay in. The amount of your future benefit depends on your earnings history and when you claim, not on how much you paid in.

Self-employed FICA is higher but partly deductible

If you are self-employed, you pay 15.3% on your net self-employment income (your business income minus business expenses). This is double what an employee pays because you cover both the employee and employer share. You calculate it on Schedule SE and report it with your tax return.

The good news: you can deduct half of your self-employment tax when you calculate your adjusted gross income. If you owe $3,000 in self-employment tax, you can deduct $1,500, which lowers your taxable income. This does not reduce the FICA you owe, but it reduces the income tax you owe on top of it.

Frequently Asked Questions

Can I opt out of paying FICA?

No. FICA is mandatory for all employees and self-employed people. The only exceptions are certain religious groups and some government employees hired before specific dates, and those exceptions are rare and require formal approval from the IRS.

Does FICA come out before or after federal income tax?

Both come out of your paycheck, but they are separate. FICA is calculated on your gross wages and withheld first. Federal income tax is then calculated on your remaining pay. Your employer withholds both and sends them to the government separately.

What if I worked multiple jobs — do I pay FICA on all of them?

Yes. Each employer withholds FICA on the wages they pay you. If you earn above the Social Security wage cap across all jobs combined, you may overpay Social Security tax, but you can claim a credit for the overpayment when you file your tax return.

Does FICA explore to tips?

Yes. Tips are considered wages and are subject to FICA withholding. You must report tips to your employer, and they withhold FICA on the total of your wages plus reported tips.

If I am retired and still working, do I pay FICA?

Yes. FICA applies to all wages regardless of age or whether you are already receiving Social Security or Medicare benefits. There is no age limit or earnings limit that exempts you from FICA withholding.