The 2024 FICA rates and wage base
For 2024, the Social Security portion of FICA is 6.2% on wages up to $168,600, and the Medicare portion is 1.45% on all wages with no cap. If you are self-employed, you pay both the employee and employer share, which comes to 15.3% total on net earnings (though you can deduct half of self-employment tax when you file). These rates have been the same since 2013, but the wage base — the maximum amount subject to Social Security tax — increases each year based on average wage growth.
Your employer withholds these amounts from your paycheck automatically. If you work for multiple employers in the same year, you might pay more Social Security tax than necessary if your combined wages exceed the wage base, but you can claim the overpayment as a credit when you file your tax return.
Key Takeaways
- Social Security tax in 2024 is 6.2% on wages up to $168,600; Medicare tax is 1.45% on all wages with no limit.
- The wage base limit ($168,600 in 2024) changes each year and is announced by the Social Security Administration in October of the prior year.
- Self-employed workers pay 15.3% total (both employee and employer portions) on net self-employment income.
- If you worked for multiple employers and your total wages exceeded the wage base, you can claim the excess Social Security tax as a refund on your tax return.
Why the wage base changes every year
The Social Security wage base is tied to the National Average Wage Index, which measures how much the average American worker earned in the previous year. The Social Security Administration calculates this index and announces the new wage base in October, which takes effect January 1 of the following year. This means the 2024 wage base was announced in October 2023.
Medicare tax, by contrast, has no wage base limit. You pay 1.45% on every dollar you earn, no matter how high your income goes. High earners also pay an additional 0.9% Medicare tax on wages above $200,000 (single filers) or $250,000 (married filing jointly), which was added in 2013.
How to find the exact 2024 wage base
The Social Security Administration publishes the wage base on its official website at ssa.gov. You can also find it on your pay stub or in the tax withholding tables your employer uses. If you are self-employed, the IRS includes the current wage base in Publication 15-B and on the self-employment tax worksheet in Form 1040 instructions.
Your payroll provider or tax software will use the correct 2024 wage base automatically, so you do not need to calculate it yourself unless you are reconciling your own withholding or checking for overpayment.
What happens if you exceed the wage base
Once your wages reach $168,600 in 2024, your employer stops withholding Social Security tax for the rest of that calendar year. This is different from Medicare tax, which continues on every paycheck. If you change jobs mid-year and your new employer does not know about your previous earnings, they may withhold Social Security tax on wages that should be exempt. This creates an overpayment.
You do not get a refund automatically. Instead, you claim the overpayment when you file your federal tax return. The IRS will refund the excess Social Security tax you paid. This is one reason to keep your W-2 forms from all employers — they show exactly how much Social Security tax was withheld by each one.
Self-employment tax and the 2024 rate
If you are self-employed, you pay FICA taxes through self-employment tax on Schedule SE. The rate is 15.3% — 12.4% for Social Security (on net earnings up to $168,600) and 2.9% for Medicare (on all net earnings). You calculate this on your net profit after business expenses, not your gross revenue.
You can deduct half of your self-employment tax as an adjustment to income on your tax return, which lowers your taxable income. This deduction is taken on Form 1040 and helps offset the fact that self-employed workers pay both the employee and employer portions. Keep records of your net earnings and self-employment tax calculation in case the IRS asks to review them.
How 2024 rates compare to recent years
The employee and employer FICA rates (6.2% Social Security, 1.45% Medicare, plus 0.9% additional Medicare for high earners) have not changed since 2013. What does change is the wage base. In 2023, the wage base was $160,200. In 2024, it rose to $168,600 — an increase of $8,400. This reflects wage growth across the economy.
The wage base typically increases by a few hundred to a few thousand dollars each year, depending on how much average wages grew. In years with very low wage growth, the increase can be minimal. In years with strong wage growth, the increase is larger.
Frequently Asked Questions
Do I pay FICA taxes on all my income?
No. Social Security tax applies only to wages up to $168,600 in 2024. Medicare tax applies to all wages with no limit. Self-employed income is treated the same way — Social Security tax on net earnings up to the wage base, Medicare tax on all net earnings.
What if I work part-time and do not earn $168,600?
You still pay 6.2% Social Security tax and 1.45% Medicare tax on every dollar you earn, up to your total income. The wage base only matters if you earn more than $168,600 in a single year.
Can my employer choose not to withhold FICA taxes?
No. FICA withholding is required by law for all employees. Your employer must withhold Social Security and Medicare taxes from your paycheck. The only exception is certain religious groups that have been granted exemption, which is rare and requires specific IRS approval.
If I am retired and still working, do I pay FICA taxes?
Yes. FICA taxes explore to all wages, regardless of your age or whether you receive Social Security benefits. There is no age limit or earnings limit that exempts you from FICA withholding.
Where can I verify my FICA contributions are being recorded correctly?
You can create an account at ssa.gov and view your Social Security earnings record online. This shows how much you have paid into Social Security each year. Check it periodically to make sure your employer reported your wages correctly.