FICA Tax Rates and the Wage Cap
FICA tax rates and wage caps for 2025
| Tax | Employee Rate | Employer Rate | 2025 Wage Cap |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $176,100 (stops above this) |
| Medicare | 1.45% | 1.45% | No cap — applies to all wages |
| Additional Medicare | 0.9% | N/A (employee only) | Above $200,000 single / $250,000 MFJ |
| Total FICA (employee) | 7.65% (up to SS cap) | 7.65% (up to SS cap) | — |
Per paycheck gross: $75,000 ÷ 26 = $2,884.62. Social Security (6.2%): $178.85. Medicare (1.45%): $41.83. Total FICA per check: $220.68. Annual FICA: $5,737.50 Social Security + $1,087.50 Medicare = $6,825 total employee FICA.
When Does the Social Security Tax Cap Matter?
The Social Security wage base cap means high earners stop paying Social Security tax partway through the year. A worker earning $300,000 per year pays Social Security tax only on the first $176,100 (approximately 7 months of earnings at that rate). After reaching the cap — roughly in September — no additional Social Security tax is withheld, and their take-home pay increases noticeably.
- At $176,100 salary: Social Security tax applies all year ($10,918 total employee SS tax)
- At $200,000 salary: Additional Medicare Tax (0.9%) begins on income above $200,000
- At $300,000: SS cap reached in September; SS withholding stops; Medicare tax continues
- Self-employed workers pay both sides: 12.4% SS + 2.9% Medicare = 15.3% total SE tax
- Half of SE tax is deductible from gross income on Form 1040
Additional Medicare Tax for High Earners
Workers earning above $200,000 (single) or $250,000 (married filing jointly) pay an additional 0.9% Medicare Tax on income above those thresholds. Employers are required to withhold this additional tax once an employee’s wages exceed $200,000 in a calendar year, regardless of filing status. The annual reconciliation on Form 8959 adjusts for the correct threshold based on your actual filing status.
See Your FICA Taxes on Each Paycheck
Enter your salary to see exactly how much Social Security and Medicare tax is deducted each pay period.