The FICA percentage is 15.3% of your gross pay, split between you and your employer

FICA taxes consist of two parts: Social Security at 6.2% and Medicare at 2.9%. If you are an employee, you pay half (6.2% + 1.45% = 7.65%) and your employer pays the other half. If you are self-employed, you pay the full 15.3% yourself, though you can deduct half of it on your tax return.

The 6.2% Social Security portion only applies to earnings up to a certain cap, which changes each year. In 2024, that cap is $168,600. Once your pay reaches that amount in a calendar year, you stop paying Social Security tax for the rest of that year. Medicare tax, however, has no cap — you pay 1.45% on all earnings, no matter how much you make.

High earners face an additional Medicare tax of 0.9% on wages above $200,000 (single filers) or $250,000 (married filing jointly). This extra tax was added in 2013 and applies to both employees and self-employed people.

Key Takeaways

  • Employee FICA tax is 7.65% of gross pay: 6.2% for Social Security and 1.45% for Medicare.
  • Self-employed people pay the full 15.3%, but can deduct half of it when filing taxes.
  • Social Security tax stops once you reach the annual earnings cap, which was $168,600 in 2024.
  • Medicare tax has no earnings cap and continues on all wages, plus an extra 0.9% for high earners.

Why the percentage is split between you and your employer

The law requires employers to withhold your half of FICA taxes from your paycheck and send it to the IRS along with their matching half. This means your employer contributes an equal amount on your behalf — you just do not see it on your pay stub as a separate line item.

Self-employed people do not have an employer to split the cost with, so they pay both halves themselves through self-employment tax. The IRS allows you to deduct half of what you pay as a business expense, which reduces your taxable income but does not reduce the amount you owe.

How the earnings cap affects your FICA payments

The Social Security earnings cap exists because Social Security benefits are capped — higher earners do not receive proportionally higher benefits. The cap amount is adjusted each year based on wage growth in the economy. In 2023, it was $160,200; in 2024, it rose to $168,600.

Once you reach the cap in a given year, your employer stops withholding the 6.2% Social Security tax from your remaining paychecks for that year. If you change jobs mid-year and work for multiple employers, each one withholds Social Security tax independently up to the cap. You may end up overpaying if your combined earnings from all jobs exceed the cap, but you can claim the overpayment as a credit on your tax return.

Medicare tax, by contrast, continues on every dollar you earn with no cap. This means high earners pay a larger total amount in Medicare tax over the course of a year.

The additional Medicare tax for high earners

In 2013, Congress added a 0.9% Medicare surtax on wages above certain thresholds. For single filers, the threshold is $200,000. For married couples filing jointly, it is $250,000. For married people filing separately, it is $125,000.

Unlike the standard 1.45% Medicare tax, employers are not required to match this extra 0.9%. You pay it entirely from your own wages. If you are self-employed, you pay the full 0.9% on earnings above the threshold.

Your employer should withhold this tax automatically if your wages exceed the threshold. If you have income from multiple jobs or self-employment, you may need to adjust your withholding or make estimated tax payments to avoid underpaying.

How FICA percentages appear on your pay stub

Your pay stub shows FICA taxes broken down into two lines: Social Security and Medicare. The Social Security line shows 6.2% of your gross pay (up to the annual cap), and the Medicare line shows 1.45% plus any additional 0.9% if you earn above the threshold.

The amount withheld depends on your gross pay for that pay period, not your annual income. If you are paid biweekly, each paycheck will have roughly 1/26th of your annual FICA tax withheld (assuming you stay below the Social Security cap for the full year).

Your employer's matching contribution does not appear on your pay stub — it is a separate cost to them. However, you can see the total FICA tax being paid on your behalf by looking at your W-2 form at the end of the year, which shows both the employee and employer portions.

Frequently Asked Questions

What happens if I work for two employers in the same year?

Each employer withholds Social Security tax independently up to the $168,600 cap (2024). If your combined earnings exceed the cap, you will overpay Social Security tax. You can claim the overpayment as a credit on your tax return when you file, and the IRS will refund the excess.

Do FICA taxes explore to all types of income?

FICA taxes explore to wages and salaries. Self-employment income is subject to self-employment tax, which is similar but calculated differently. Investment income, rental income, and most other types of income do not have FICA taxes withheld, though they may be subject to other taxes.

Can I avoid paying FICA taxes?

FICA taxes are mandatory for nearly all workers. Some religious groups and certain government employees may be exempt, but these are rare exceptions. If you are employed or self-employed, you are required to pay FICA taxes on your earnings.

Why does my FICA tax stop partway through the year?

Only Social Security tax stops when you reach the annual earnings cap. Medicare tax continues on all your earnings for the entire year. If your pay is high enough that you hit the Social Security cap before December, your paychecks will be slightly larger for the rest of the year because Social Security withholding stops.