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)
Social Security Wage Base History
| 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
Social Security (OASDI)
| 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
Social Security Tax Cap Across 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
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