FICA tax is 15.3% of your wages, split between you and your employer
FICA stands for Federal Insurance Contributions Act. It funds Social Security and Medicare. The total rate is 15.3%, but you only see half of it on your paycheck — your employer pays the other half directly to the government.
On your end, you pay 7.65% of your gross wages. That breaks down as 6.2% for Social Security and 1.45% for Medicare. If you earn $50,000 a year, FICA takes roughly $3,825 from your paychecks. Your employer sends in another $3,825 on your behalf, though you never see that money leave your account.
The Social Security portion stops once you hit a wage cap. In 2024, you stop paying Social Security tax after earning $168,600. Medicare tax, by contrast, has no cap — you pay 1.45% on every dollar you earn, no matter how much you make. If you earn over $200,000 as a single filer (or $250,000 married filing jointly), you also pay an extra 0.9% Medicare tax on the amount above that threshold.
Key Takeaways
- You pay 7.65% of your wages to FICA: 6.2% for Social Security and 1.45% for Medicare.
- Your employer pays an equal 7.65%, bringing the total to 15.3%, though you only see your half deducted from your paycheck.
- Social Security tax stops once you reach the annual wage cap, which was $168,600 in 2024.
- Medicare tax has no wage cap and applies to every dollar you earn, plus an extra 0.9% if you earn above $200,000 (single) or $250,000 (married filing jointly).
How FICA appears on your pay stub
Your pay stub shows FICA as two separate line items: Social Security and Medicare. The Social Security line shows 6.2% of your gross pay. The Medicare line shows 1.45%. These amounts are subtracted before you receive your paycheck.
If you work for yourself as a freelancer or sole proprietor, you pay both halves — the employee portion and the employer portion — which totals 15.3%. This is called self-employment tax, and you pay it when you file your annual tax return, not through payroll deductions.
The Social Security wage cap and why it matters
Social Security tax only applies to income up to a certain limit. In 2024, that limit is $168,600. Once you earn that much in a calendar year, your employer stops taking Social Security tax from your paychecks for the rest of the year.
This cap changes every year based on wage growth. If you change jobs mid-year, you might pay Social Security tax on more than the cap if your employers don't coordinate. For example, if you earned $100,000 at Job A and then switched to Job B and earned another $100,000, you would pay Social Security tax on both amounts — a total of $200,000 — even though the cap is $168,600. You can claim the overpayment as a credit on your tax return.
Medicare tax has no cap. You pay 1.45% on every dollar, regardless of how much you earn in a year.
Additional Medicare tax for higher earners
If your income exceeds certain thresholds, you pay an extra 0.9% Medicare tax on the amount above that threshold. For single filers, the threshold is $200,000. For married couples filing jointly, it is $250,000. For married filing separately, it is $125,000.
This extra tax applies to wages, self-employment income, and certain investment income. Your employer withholds it automatically if your wages cross the threshold. If you have multiple jobs or self-employment income, you may need to account for it when you file your tax return.
What FICA taxes pay for
The 6.2% Social Security portion funds retirement, disability, and survivor benefits. When you turn 62 or older, you can draw from the Social Security fund you paid into. If you become disabled before retirement age, you may receive disability benefits. If you die, your spouse and children may receive survivor benefits.
The 1.45% Medicare portion funds hospital insurance (Part A), which covers inpatient hospital stays, skilled nursing, hospice, and home health care. It does not cover doctor visits or prescription drugs — those are covered by Medicare Part B and Part D, which have separate premiums you pay in retirement.
FICA tax rates by year
The employee portion of FICA has remained steady at 7.65% since 1990. The Social Security wage cap, however, rises most years. Here are recent caps:
| Year | Social Security Wage Cap |
|---|---|
| 2022 | $147,000 |
| 2023 | $160,200 |
| 2024 | $168,600 |
The cap is set by the Social Security Administration each October based on the average wage index for the prior year. It typically increases by a few thousand dollars annually, though the increase varies.
How to check your FICA tax on your pay stub
Look for line items labeled "Social Security" and "Medicare" or sometimes "OASDI" (Old-Age, Survivors, and Disability Insurance) and "HI" (Hospital Insurance). Multiply your gross pay by 0.062 to verify the Social Security amount and by 0.0145 to verify the Medicare amount.
If the amounts don't match, check whether you've already hit the Social Security wage cap for the year. If you have, Social Security tax should be zero for the rest of the year. If you haven't hit the cap and Social Security tax is missing, contact your payroll department.
You can also view your lifetime FICA contributions and estimated benefits by creating an account at ssa.gov and requesting your Social Security statement. This shows how much you've paid in and what your benefits might be at different retirement ages.
Frequently Asked Questions
Can I opt out of paying FICA tax?
No. FICA is mandatory for all employees and self-employed people. The only exceptions are certain religious groups and some government employees hired before specific dates. If you are a W-2 employee, your employer withholds FICA automatically.
What happens if I work two jobs — do I pay FICA twice?
Yes, you pay FICA on income from both jobs. If your combined earnings exceed the Social Security wage cap, you will overpay Social Security tax. You can claim the overpayment as a credit when you file your tax return, and the IRS will refund it.
Do I pay FICA tax on tips?
Yes. Tips are considered wages and are subject to FICA tax. Your employer should withhold FICA on tips you report. If you receive cash tips you don't report, you still owe FICA tax on them when you file your return.
Is FICA tax the same as income tax?
No. FICA and income tax are separate. FICA funds Social Security and Medicare. Income tax funds general government operations. Both are withheld from your paycheck, but they go to different places and fund different programs.
What if I'm self-employed — how do I pay FICA?
Self-employed people pay self-employment tax, which is 15.3% of net business income (after business expenses). You pay this when you file your annual tax return, not through payroll. You can deduct half of what you pay as a business expense on your return.