How Much FICA Tax Do I Pay on My Income?
A guide to the federal payroll tax on your income. We explain how rates, income thresholds, and your employment type affect what you owe and why.
The Federal Insurance Contributions Act (FICA) mandates a payroll tax for most employees and employers in the United States. These funds are allocated to two federal programs: Social Security and Medicare. This tax directly funds retirement, disability, and health insurance benefits that millions of Americans use.
The Components and Rates of FICA Tax
FICA tax is composed of two separate parts. The first is the Social Security tax, which has an employee rate of 6.2% for 2025. This tax helps fund retirement, disability, and survivor benefits.
The second component is the Medicare tax, which has an employee rate of 1.45%. This tax funds the Medicare program, providing health insurance primarily for individuals aged 65 and older. Unlike Social Security tax, there is no income limit for the Medicare tax.
The combined FICA tax rate for an employee is 7.65% of their gross pay. Employers are also required to contribute a matching amount for each employee, paying 6.2% for Social Security and 1.45% for Medicare.
Calculating Your FICA Tax as an Employee
The Social Security tax is subject to an annual income limit known as the wage base limit. For 2025, this limit is $176,100, meaning the 6.2% tax only applies to earnings up to this amount. This results in a maximum Social Security tax payment of $10,918.20 for an employee in 2025.
To calculate your annual FICA tax, multiply your gross earnings up to the wage base limit by 6.2% for the Social Security portion. Then, multiply your total gross earnings by 1.45% for the Medicare portion. For example, an employee earning $90,000 would pay $5,580 in Social Security tax and $1,305 in Medicare tax.
Higher-income earners may be subject to the Additional Medicare Tax. This is an extra 0.9% tax on wages that exceed certain thresholds based on filing status: $200,000 for Single filers, $250,000 for Married Filing Jointly, and $125,000 for Married Filing Separately. This additional tax is paid only by the employee, as employers do not match this contribution.
FICA Tax for Self-Employed Individuals
Self-employed individuals pay taxes under the Self-Employment Contributions Act (SECA). Because they are considered both the employee and employer, a self-employed person is responsible for paying both portions of the taxes.
The SECA tax rates are 12.4% for Social Security and 2.9% for Medicare, representing the combined employee and employer shares. The 2025 Social Security wage base limit of $176,100 also applies to self-employment earnings, while the Medicare tax applies to all net earnings.
SECA tax is levied on 92.35% of your net earnings from self-employment, not the total net profit. This adjustment accounts for the value of the employer’s matching contribution. To help offset the tax burden, self-employed individuals can deduct one-half of their total SECA tax payment as an adjustment to income on their Form 1040.
Addressing FICA Tax Overpayments
An employee can overpay Social Security taxes, most commonly when working for two or more employers in a year. If their combined income exceeds the annual wage base limit, they may have too much tax withheld.
Each employer must withhold Social Security tax up to the $176,100 limit and is unaware of wages paid by other employers. If your total earnings from multiple jobs surpass this threshold, the cumulative tax withheld will exceed the annual maximum of $10,918.20.
An overpayment of Social Security tax can be recovered by claiming it as a refundable credit on your annual Form 1040 income tax return. This credit will either reduce the income tax you owe or increase your tax refund.