What You Pay in FICA Tax in 2024

FICA tax in 2024 has two parts: Social Security at 6.2% of your wages, and Medicare at 1.45% of your wages. If you're self-employed, you pay both the employee and employer portions, which totals 15.3% for Social Security and Medicare combined. Your employer withholds these amounts from your paycheck automatically.

The Social Security portion only applies to wages up to a certain limit. In 2024, that limit is $168,600 — meaning once you earn that much in a year, Social Security tax stops being withheld from your paychecks. Medicare tax, by contrast, has no wage limit and continues on all earnings. High earners also pay an additional 0.9% Medicare tax on wages over $200,000 (single filers) or $250,000 (married filing jointly).

Key Takeaways

  • Social Security tax is 6.2% on wages up to $168,600 in 2024; Medicare tax is 1.45% on all wages with no limit.
  • Self-employed workers pay 15.3% total for both programs because they cover both the employee and employer share.
  • High earners pay an extra 0.9% Medicare tax on wages above $200,000 (single) or $250,000 (married filing jointly).
  • Your employer withholds FICA tax automatically from each paycheck; you see it listed separately on your pay stub.
  • The wage base limit for Social Security changes each year based on average wage growth.

How the Social Security Wage Base Works

The wage base is the maximum amount of your annual earnings subject to Social Security tax. In 2024, that number is $168,600. If you earn $150,000, you pay Social Security tax on all of it. If you earn $200,000, you pay Social Security tax only on the first $168,600.

This limit changes every year. The Social Security Administration adjusts it based on the average wage index — essentially, how much American workers earned on average the previous year. When average wages go up, the wage base goes up. This is why the limit was $160,200 in 2023 and $168,600 in 2024. The 2025 limit will be announced by the Social Security Administration in October 2024.

Medicare tax has no wage base limit. You pay 1.45% on every dollar you earn, no matter how much that is. This is one key difference between the two programs.

Self-Employment Tax and What It Covers

If you're self-employed, you pay self-employment tax instead of having an employer withhold FICA. The rate is 15.3% total: 12.4% for Social Security (the employee and employer portions combined) and 2.9% for Medicare (employee and employer combined).

Self-employment tax applies to your net business income — what you earn after subtracting business expenses. You calculate it on Schedule SE (Form 1040), which you file with your tax return. The Social Security portion still has the $168,600 wage base limit for 2024, so once your net self-employment income reaches that amount, you stop paying the 12.4% Social Security portion on additional earnings.

You can deduct half of your self-employment tax from your income when you file your tax return, which reduces your overall tax burden slightly. Many self-employed people set aside money throughout the year to cover this tax, since it's not withheld automatically like it is for employees.

Additional Medicare Tax for High Earners

Workers who earn above certain thresholds pay an extra 0.9% Medicare tax on top of the regular 1.45%. In 2024, these thresholds are $200,000 for single filers, $250,000 for married couples filing jointly, and $125,000 for married couples filing separately.

This additional tax was introduced in 2013 as part of the Affordable Care Act. Unlike the regular Medicare tax, there is no wage base limit — the extra 0.9% applies to all earnings above the threshold. If you're an employee, your employer withholds this tax automatically once your year-to-date wages cross the threshold. If you're self-employed, you calculate it yourself on your tax return.

The thresholds do not adjust for inflation each year — they remain fixed at $200,000, $250,000, and $125,000. This means more workers may become subject to this tax over time as wages generally increase.

Reading Your Pay Stub and FICA Deductions

Your pay stub shows FICA taxes broken down into two line items: one for Social Security and one for Medicare. You'll see the amounts withheld listed separately, along with the percentages. If you're a high earner, you may also see a line for additional Medicare tax.

The amounts withheld are based on your gross pay — your earnings before any deductions. If you earn $3,000 in a pay period, Social Security tax is calculated as $3,000 × 6.2% = $186. Medicare is $3,000 × 1.45% = $43.50. These amounts come out of your paycheck before you receive it.

If you work multiple jobs or change jobs during the year, you might overpay Social Security tax. This happens because each employer withholds based on their own payroll, not your total earnings across all employers. When you file your tax return, you can claim a credit for the overpayment, and the IRS will refund it to you.

How FICA Taxes Fund Social Security and Medicare

The FICA taxes you pay fund two separate programs. The 6.2% Social Security portion goes into a trust fund that pays retirement benefits, disability benefits, and survivor benefits to workers and their families. The 1.45% Medicare portion funds Part A (hospital insurance) and Part B (medical insurance) for people age 65 and older, as well as some younger people with disabilities.

These are not savings accounts in your name. FICA is a pay-as-you-go system: current workers' taxes pay current beneficiaries' benefits. When you retire, future workers' FICA taxes will fund your benefits. The amount you receive in benefits is based on your earnings history and age when you claim, not on how much you paid in.

Both programs are managed by federal agencies — Social Security Administration for Social Security, and Centers for Medicare and Medicaid Services for Medicare. Your employer reports your wages and FICA withholding to the IRS, which tracks your earnings record for benefit calculation purposes.

Frequently Asked Questions

What happens to my FICA taxes if I earn over the Social Security wage base?

Once your wages reach $168,600 in 2024, your employer stops withholding the 6.2% Social Security tax for the rest of that year. You continue paying the 1.45% Medicare tax on all earnings. If you work multiple jobs, each employer withholds independently, which can result in overpayment — you'll get a credit on your tax return.

Do I pay FICA tax on all types of income?

FICA applies only to wages and self-employment income. It does not explore to investment income, rental income, interest, or capital gains. If you have a job and also earn money from investments, you pay FICA only on your wages or self-employment earnings.

Can I opt out of paying FICA tax?

No. FICA is mandatory for all employees and self-employed workers. The only exceptions are certain religious groups and some government employees hired before specific dates, but these are rare. If you're working, FICA tax is withheld automatically.

Will the FICA tax rates change in 2025?

The rates themselves — 6.2% for Social Security and 1.45% for Medicare — have been fixed since 1990 and are set by law. The wage base limit for Social Security changes each year, and the 2025 limit will be announced in October 2024. The rates can only be changed by Congress.

How do I know how much FICA tax I've paid in a year?

Your W-2 form, which your employer sends you by January 31, shows total Social Security and Medicare taxes withheld for the year. You can also check your Social Security earnings record online at ssa.gov using your personal account, which shows your lifetime earnings and FICA contributions.