FICA Tax Rate

FICA tax is a combination of a social security tax and a Medicare tax. The social security tax is assessed on wages up to $118,500; the Medicare tax is assessed on all wages.

Self-employed individuals pay a self-employment tax which is the equivalent of FICA tax. For 2015, they will pay a 12.4% OASDI tax (the old age, survivors, and disability insurance tax) on the first $118,500 of self-employment income. A 2.9%* Medicare tax is imposed on all net self-employment income.

The earnings limit for retirees under full retirement age is $15,720. Social security benefits will be reduced $1 for every $2 of earnings above this limit. There is no earnings limit for individuals at full retirement age. (Special rules apply in the first year of retirement.)

Tax Tax Rate Maximum Wage Base Maximum Tax
Social Security
6.20%
$118,500
$7,347
Medicare
1.45%*
No limit
No ceiling
* A 0.9% Medicare surtax is assessed on all wages or self-employment income in excess of $200,000 for singles, $250,000 for joint returns, and $125,000 for marrieds filing separately.