FICA takes 15.3% of your wages, split between you and your employer

FICA is two separate payroll taxes: Social Security and Medicare. Together they remove 15.3% of your gross pay. Your employer withholds 7.65% from your paycheck, and your employer pays the other 7.65% on your behalf — though you bear the economic cost of both halves.

The breakdown is straightforward: 12.4% goes to Social Security (on wages up to a cap that changes yearly), and 2.9% goes to Medicare (on all wages, with no cap). If you are self-employed, you pay both halves yourself, which is why self-employment tax is 15.3% of net profit.

The amount you pay depends only on your income. There are no deductions, no credits, and no way to reduce it except by earning less. FICA is withheld before federal income tax, state tax, or any other deduction.

Key Takeaways

  • FICA withholds 7.65% from your paycheck; your employer pays another 7.65% that you do not see but that reduces your take-home value.
  • Social Security takes 12.4% of wages up to an annual cap (which was $168,600 in 2024, but changes yearly), and Medicare takes 2.9% of all wages with no limit.
  • Self-employed people pay the full 15.3% themselves, calculated on net profit after business expenses.
  • FICA withholding happens before income tax and cannot be reduced or avoided through deductions or credits.
  • The money funds Social Security retirement, disability, and survivor benefits, plus Medicare hospital insurance for people 65 and older and some younger people with disabilities.

How the 15.3% breaks down between Social Security and Medicare

Social Security takes 12.4% of your wages, but only up to a wage cap. That cap changes every year based on inflation. In 2024, the cap was $168,600 — meaning once you earned that much in a calendar year, no more Social Security tax was withheld from your remaining paychecks that year. In 2025, the cap is higher. Check the Social Security Administration website or your pay stub to see the current year's limit.

Medicare takes 2.9% of every dollar you earn, with no wage cap. Once you hit the Social Security cap, Medicare tax keeps coming out of every paycheck for the rest of the year. Additionally, if your income exceeds certain thresholds ($200,000 for single filers, $250,000 for married filing jointly), you pay an extra 0.9% Medicare tax on the amount above the threshold.

Together, the base 12.4% and 2.9% equal 15.3%. For most workers, that is the total FICA rate. The extra Medicare tax only applies to higher earners.

Where FICA money goes and what it funds

Social Security tax funds three programs: retirement benefits for people 62 and older, disability benefits for workers under 65 who cannot work due to a medical condition, and survivor benefits for the families of workers who die. The program is a pay-as-you-go system — current workers' taxes pay current beneficiaries' checks.

Medicare tax funds hospital insurance (Part A), which covers inpatient hospital stays, skilled nursing care, hospice, and some home health services. It does not fund Medicare Parts B, D, or supplemental coverage; those come from general tax revenue and beneficiary premiums.

Both programs are federal trust funds managed by the Social Security Administration and the Centers for Medicare and Medicaid Services. The money does not sit in an account with your name on it; it is spent immediately to pay current beneficiaries.

Why your employer's FICA payment matters even though you do not see it

Your employer pays 7.65% of your wages in FICA taxes on your behalf. You do not see this money in your paycheck, but it is part of your total compensation cost to the employer. From an economic standpoint, this employer contribution reduces the amount available for your wages — if the employer did not have to pay FICA, that money could theoretically go to you instead.

When you negotiate salary, the total FICA cost (both halves) is part of what the employer budgets. Self-employed people see this clearly: they pay the full 15.3% out of pocket, which is why self-employment tax is often higher than employees expect.

You do not report the employer's FICA payment as income on your tax return, and you cannot deduct it. It is a cost borne by the employer, but the economic burden falls on you through lower wages.

How to find your FICA withholding on your pay stub

Your pay stub shows FICA withholding in two lines: one for Social Security (labeled "OASDI" or "Social Security") and one for Medicare (labeled "Medicare" or "HI"). The amounts should match 6.2% for Social Security and 1.45% for Medicare of your gross pay, assuming you have not hit the Social Security wage cap yet.

If you have already earned more than the Social Security cap this year, the Social Security line will show zero for the rest of the year, but Medicare will continue. If you earn over the threshold for extra Medicare tax, you will see an additional line labeled "Medicare Additional Tax" or "Extra Medicare Tax" showing 0.9% of the overage.

Your annual W-2 form also reports total FICA withheld in boxes 4 (Social Security tax) and 6 (Medicare tax). If you are self-employed, you calculate and pay FICA (called self-employment tax) on Schedule SE when you file your tax return.

What happens if you work multiple jobs or change jobs mid-year

If you work two jobs in the same year, each employer withholds Social Security tax up to the annual cap independently. This means you could pay more Social Security tax than required if your combined earnings exceed the cap. For example, if you earn $100,000 at Job A and $80,000 at Job B, both employers will withhold Social Security tax on their full amounts, even though your total earnings exceed the cap.

You can recover the overpayment when you file your tax return. The IRS will refund the excess Social Security tax withheld. Medicare tax has no cap, so there is no overpayment issue with multiple jobs.

If you change jobs mid-year, your new employer does not know how much you have already earned. They will withhold Social Security tax as if you are starting fresh. Again, you will reconcile this on your tax return and receive a refund if you overpaid.

FICA rates for self-employed people and gig workers

If you are self-employed or work as a contractor, you pay the full 15.3% FICA tax yourself on your net profit (income minus business expenses). This is called self-employment tax and is calculated on Schedule SE of your tax return.

You can deduct half of your self-employment tax when calculating your adjusted gross income, which provides some tax relief. However, you still pay the full amount upfront, usually through quarterly estimated tax payments.

Gig workers (rideshare, delivery, freelance) are generally treated as self-employed for FICA purposes. Platforms like DoorDash or Uber do not withhold FICA; you are responsible for paying it yourself. Many gig workers underestimate this cost and are surprised by the bill when they file their return.

Frequently Asked Questions

Can I opt out of FICA taxes?

No. FICA is mandatory for all workers in the United States, with very limited exceptions. Some religious groups and certain government employees have exemptions, but they are rare and require specific conditions. If you work and earn wages, FICA is withheld.

Does FICA withholding count toward my income tax?

No. FICA and federal income tax are separate. FICA is withheld first, then federal income tax is withheld from what remains. You cannot use FICA payments to reduce your income tax bill.

What if I did not work the whole year?

FICA is withheld on every paycheck based on your gross pay for that period. If you worked only part of the year, you pay FICA only on the wages you earned. There is no annual minimum or adjustment for partial-year work.

Why is my FICA withholding different from my coworker's if we earn the same salary?

The most common reason is that your coworker has already hit the Social Security wage cap for the year and no longer has Social Security tax withheld, while you have not. If you both earn the same salary but started work at different times in the year, your FICA withholding will differ.

Do I get FICA taxes back if I do not claim benefits?

No. FICA is a tax, not a savings account. Even if you never claim Social Security or Medicare, the money you paid in is spent to fund current beneficiaries. You do not receive a refund or credit for FICA taxes paid.