FICA stands for Federal Insurance Contributions Act. It's the combination of Social Security tax (6.2%) and Medicare tax (1.45%) that's withheld from your paycheck. Your employer pays a matching amount.

How much is FICA tax in 2025?

Employees pay 7.65% in FICA taxes (6.2% Social Security + 1.45% Medicare). Self-employed individuals pay 15.3% (both employee and employer portions). Social Security tax applies to wages up to $176,100.

What is the Social Security wage base for 2025?

The Social Security wage base for 2025 is $176,100. This means Social Security tax (6.2%) only applies to the first $176,100 of wages. Medicare tax has no wage limit.

What is the Additional Medicare Tax?

High earners pay an additional 0.9% Medicare tax on wages exceeding $200,000 (single) or $250,000 (married filing jointly). This brings total Medicare tax to 2.35% on income above these thresholds.

FICA Tax Explained: Social Security and Medicare Taxes (2025)

What is FICA Tax?

FICA (Federal Insurance Contributions Act) tax funds Social Security retirement/disability benefits and Medicare healthcare. It’s the largest tax most Americans pay after federal income tax.

2025 FICA Tax Rates

Employee FICA Rates

Tax	Rate	Wage Limit	Max Tax
Social Security	6.2%	$176,100	$10,918
Medicare	1.45%	No limit	No max
Additional Medicare	0.9%	Over $200k (single)	Varies
Total FICA	7.65%	–	–

Employer Matching

Tax	Rate	Notes
Social Security	6.2%	Employer pays same
Medicare	1.45%	Employer pays same
Additional Medicare	0%	Employer doesn’t match
Total Employer	7.65%	–

Combined Tax Burden

Tax	Employee	Employer	Total
Social Security	6.2%	6.2%	12.4%
Medicare	1.45%	1.45%	2.9%
Total	7.65%	7.65%	15.3%

How FICA Appears on Your Pay Stub

Pay Stub Example ($5,000 gross biweekly)

Deduction	Rate	Amount
Social Security	6.2%	$310.00
Medicare	1.45%	$72.50
Total FICA	7.65%	$382.50

FICA by Salary Level

Annual FICA Tax Table (Employee Portion Only)

Annual Salary	Social Security	Medicare	Total FICA
$30,000	$1,860	$435	$2,295
$50,000	$3,100	$725	$3,825
$75,000	$4,650	$1,088	$5,738
$100,000	$6,200	$1,450	$7,650
$150,000	$9,300	$2,175	$11,475
$176,100 (SS cap)	$10,918	$2,553	$13,471
$200,000	$10,918	$2,900	$13,818
$250,000	$10,918	$3,625 + $450*	$14,993
$300,000	$10,918	$4,350 + $900*	$16,168
$500,000	$10,918	$7,250 + $2,700*	$20,868

*Additional Medicare tax of 0.9% on income over $200,000 (single)

Year	Wage Base	Max SS Tax (Employee)
2025	$176,100	$10,918
2024	$168,600	$10,453
2023	$160,200	$9,932
2022	$147,000	$9,114
2021	$142,800	$8,854
2020	$137,700	$8,538

The wage base typically increases 2-5% annually based on average wage growth.

Additional Medicare Tax

High earners pay an extra 0.9% Medicare tax:

Thresholds

Filing Status	Threshold
Single	$200,000
Married Filing Jointly	$250,000
Married Filing Separately	$125,000
Head of Household	$200,000

Example: $300,000 Salary (Single)

Tax	Calculation	Amount
Social Security	$176,100 × 6.2%	$10,918
Medicare (regular)	$300,000 × 1.45%	$4,350
Additional Medicare	($300,000 - $200,000) × 0.9%	$900
Total FICA	–	$16,168

FICA for Self-Employed (Self-Employment Tax)

Self-employed individuals pay both employee and employer portions:

Tax	Rate	Notes
Social Security	12.4%	Both portions
Medicare	2.9%	Both portions
Total Self-Employment	15.3%	–

SE Tax Adjustment

Self-employed individuals:

Pay SE tax on 92.35% of net self-employment income
Can deduct 50% of SE tax from income tax

Self-Employment Tax Example

Factor	Amount
Net self-employment income	$100,000
Taxable for SE (× 0.9235)	$92,350
Social Security (12.4%)	$11,451
Medicare (2.9%)	$2,678
Total SE Tax	$14,129
Deduction (50%)	$7,065

FICA vs. Income Tax

Characteristic	FICA	Income Tax
Rate structure	Flat	Progressive
Deductions reduce?	No *	Yes
Standard deduction apply?	No	Yes
Refundable?	No **	Yes
Wage base limit?	SS: Yes; Medicare: No	No

*Pre-tax 401(k), HSA contributions reduce FICA wages **Except Earned Income Tax Credit situations

Reducing FICA Through Pre-Tax Deductions

These reduce FICA wages:

Pre-Tax Benefit	Reduces FICA?
Traditional 401(k)	✅ Yes
Health insurance premiums	✅ Yes
HSA contributions	✅ Yes
FSA contributions	✅ Yes
Commuter benefits	✅ Yes
Roth 401(k)	❌ No
Traditional IRA	❌ No

FICA Savings Example

Without 401(k)	With $23,500 401(k)
Wages: $100,000	Wages: $76,500
FICA: $7,650	FICA: $5,852
FICA savings	$1,798

What FICA Funds

Program	What It Funds
Old-Age Insurance	Retirement benefits
Survivors Insurance	Benefits for spouse/children
Disability Insurance	SSDI benefits

Medicare (HI)

Program	What It Funds
Medicare Part A	Hospital insurance
Medicare Trust Fund	Future Medicare benefits

FICA for Multiple Jobs

If you work multiple jobs and total wages exceed the SS wage base:

Job 1 Wages	Job 2 Wages	Total	SS Tax Problem
$100,000	$100,000	$200,000	Over-withheld
SS from Job 1	SS from Job 2	Total SS paid
$6,200	$6,200	$12,400	Should be $10,918
Excess	–	$1,482	Claimed on tax return

Solution: Claim excess Social Security tax on Form 1040 as a credit.

Medicare Across Jobs

Medicare has no wage limit, so no refund for Medicare taxes from multiple jobs.

W-2 Box Reference

W-2 Box	Content
Box 3	Social Security wages
Box 4	Social Security tax withheld
Box 5	Medicare wages
Box 6	Medicare tax withheld

Key Takeaways

FICA is 7.65% — 6.2% Social Security + 1.45% Medicare
Social Security caps at $176,100 — No more SS tax above this amount
Medicare has no limit — Plus extra 0.9% above $200k (single)
Employers match your contribution — Total 15.3% goes to these programs
Pre-tax deductions reduce FICA — 401(k), HSA, health premiums
Self-employed pay both halves — 15.3% total (but can deduct half)

Sources

Social Security Administration. “Benefits and Eligibility Information.” ssa.gov/benefits
Centers for Medicare & Medicaid Services. “Medicare Program Information.” medicare.gov

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

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