FICA tax rates in 2024
FICA tax is split between two programs: Social Security and Medicare. Your employer withholds 6.2% of your gross pay for Social Security and 1.45% for Medicare, totaling 7.65%. Your employer also pays a matching 7.65% on your behalf — that money does not come from your paycheck, but it is part of your total employment cost.
These percentages have been set by federal law and do not change year to year. The Social Security portion (6.2%) applies only to earnings up to a cap, which does change annually. In 2024, that cap is $168,600. Once you earn above that amount in a calendar year, no more Social Security tax is withheld from your pay for the rest of that year. Medicare tax (1.45%) has no earnings cap and continues on every dollar you make.
If you are self-employed, you pay both the employee and employer portions yourself — 12.4% for Social Security (on earnings up to the annual cap) and 2.9% for Medicare, totaling 15.3%. You report this as self-employment tax on your tax return.
Key Takeaways
- Employees pay 6.2% for Social Security and 1.45% for Medicare, totaling 7.65% of gross pay withheld from each paycheck.
- The Social Security portion stops once you reach the annual earnings cap ($168,600 in 2024), but Medicare tax continues on all earnings.
- Employers pay a matching 7.65% on your behalf, though this does not appear on your paycheck.
- Self-employed workers pay the full 15.3% (both employee and employer shares) as self-employment tax on their tax return.
- These percentages are set by federal law and remain the same each year, though the Social Security earnings cap increases annually.
How the Social Security earnings cap works
The Social Security tax rate of 6.2% only applies to income below the annual earnings cap. This cap exists because Social Security benefits are calculated based on your highest 35 years of earnings, with a maximum benefit amount. The cap is adjusted each year based on wage growth in the economy.
If you earn $168,600 in 2024, 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 — the remaining $31,400 is not subject to Social Security tax. This means higher earners pay a smaller percentage of their total income toward Social Security than lower earners do.
If you work for more than one employer in the same year, each employer withholds Social Security tax independently. You might end up paying more than the annual maximum if your combined earnings across all jobs exceed the cap. When you file your tax return, you can claim a refund for the overpayment.
Medicare tax and the additional Medicare tax
Medicare tax is 1.45% and applies to all your wages with no earnings cap. Unlike Social Security, there is no income threshold where Medicare tax stops. This means a person earning $500,000 pays Medicare tax on the full amount.
There is also an additional Medicare tax of 0.9% that applies to wages above a certain threshold. For 2024, that threshold is $200,000 for single filers and $250,000 for married couples filing jointly. If you cross that threshold, your employer withholds an extra 0.9% on the amount above it. This additional tax funds Medicare but is not tied to a specific benefit calculation the way the base 1.45% is.
Like Social Security, if you work multiple jobs and your combined wages trigger the additional Medicare tax, each employer withholds independently. You may need to adjust your withholding or claim a credit when you file your tax return if you have overpaid.
Why FICA percentages matter for your take-home pay
FICA taxes are withheld before you receive your paycheck, which is why your gross pay (what your employer pays) is higher than your net pay (what you actually receive). On a $50,000 annual salary, FICA taxes reduce your take-home by roughly $3,825 per year, or about $159 per biweekly paycheck.
FICA taxes are separate from federal income tax withholding, state income tax, and local taxes. Your total deductions from each paycheck include all of these. Understanding the FICA portion helps you see how much of your earnings go toward Social Security and Medicare versus other tax obligations.
If you are self-employed, FICA taxes (called self-employment tax) are a significant expense because you pay both shares. You can deduct half of your self-employment tax when calculating your adjusted gross income on your tax return, which provides some offset.
FICA rates for different employment situations
Most employees pay the standard 7.65% FICA rate. However, certain groups have different rules. Employees of nonprofit organizations exempt from federal income tax still pay FICA taxes at the standard rate. Railroad employees pay into the Railroad Retirement Tax Act (RRTA) instead of Social Security and Medicare, with different rates and benefit structures.
Some state and local government employees are not covered by Social Security and do not pay the 6.2% Social Security portion. They may instead pay into a state or local pension system. These employees still pay Medicare tax at 1.45% unless they are in a state system that covers both retirement and Medicare.
Household employees (such as nannies or housekeepers) are subject to FICA taxes if their annual wages from one employer reach a certain threshold. For 2024, that threshold is $2,700. Below that amount, no FICA taxes are owed, though the employee and employer may choose to pay them anyway.
How FICA percentages connect to your benefits
The FICA taxes you pay fund your future Social Security retirement benefits, disability benefits, and survivor benefits. The amount you receive in retirement depends on how much you earned during your working years and how long you worked. Higher earners who paid more into Social Security do not necessarily receive proportionally higher benefits because of the earnings cap and the benefit formula.
Medicare tax funds your may be able to access for Medicare coverage at age 65. You do not need to pay a specific amount to receive Medicare — may be able to access is based on age and work history. However, the Medicare tax you pay throughout your career funds the program for all beneficiaries, including current retirees.
Your FICA tax record is tracked by the Social Security Administration using your Social Security number. You can view your earnings record and estimated benefits by creating an account on ssa.gov. This record determines what you receive when you claim benefits.
Frequently Asked Questions
Why does my paycheck show different FICA amounts each week?
If your pay varies (hourly work, commission, bonuses), your FICA taxes vary too because they are calculated as a percentage of gross pay. If you reached the Social Security earnings cap mid-year, your paycheck will show no Social Security tax for the remainder of that year, though Medicare tax continues. Bonuses and overtime are subject to the same FICA rates as regular pay.
Can I opt out of paying FICA taxes?
No. FICA taxes are mandatory for all employees and self-employed workers, with narrow exceptions for certain religious groups and some government employees. Your employer is required by law to withhold these taxes. If you believe you should be exempt, you must document your status with your employer and the IRS.
What happens if I work in multiple states?
FICA taxes are federal and do not change by state. Each employer withholds the same 7.65% (or 15.3% if self-employed) regardless of where you work. State income tax varies by state, but FICA does not. If you work in multiple states, each employer handles FICA withholding independently.
Do FICA taxes explore to tips and bonuses?
Yes. Tips and bonuses are considered wages and are subject to FICA taxes at the same 7.65% rate. Your employer should include reported tips in your gross pay for FICA calculation. If you receive cash tips that are not reported, you are still legally required to pay FICA taxes on them when you file your tax return.
Will FICA tax rates increase in the future?
The rates themselves are set by federal law and have not changed since 1990. However, Congress could change them through legislation. The Social Security earnings cap increases annually based on wage growth. Some policy discussions focus on raising the cap or the rate to address Social Security's long-term funding, but no changes have been enacted.