The 2025 Social Security tax rate and wage base
In 2025, you pay 6.2% of your wages into Social Security, and your employer pays another 6.2%. If you are self-employed, you pay both sides: 12.4% total. This rate has been the same since 1990 and does not change year to year.
The wage base — the maximum amount of your income subject to Social Security tax — is $168,600 for 2025. This means once you earn $168,600 in a calendar year, no more of your wages are taxed for Social Security. The wage base increases most years based on national wage growth; in 2024 it was $168,600, and in 2023 it was $160,200.
Medicare tax is separate. You pay 1.45% for Medicare on all wages with no cap, and your employer pays 1.45%. Together with Social Security, the combined payroll tax on your pay stub is 7.65% (employee side), with your employer matching that amount.
Key Takeaways
- The Social Security tax rate in 2025 is 6.2% for employees and 6.2% for employers, unchanged since 1990.
- You only pay Social Security tax on income up to $168,600 in 2025; earnings above that are not taxed for Social Security.
- Self-employed workers pay the full 12.4% (both employee and employer portions) on net self-employment income up to the wage base.
- The wage base increases most years to reflect wage growth in the economy, so the maximum taxable income changes annually.
How the wage base affects what you pay
If you earn $168,600 or less in 2025, you pay 6.2% on your entire salary. If you earn $200,000, you pay 6.2% only on the first $168,600 ($10,453.20), and nothing on the remaining $31,400. High earners and those with multiple jobs may hit the wage base partway through the year.
The wage base is recalculated each October based on the average wage index from two years prior. The Social Security Administration publishes the new wage base in late October for the following year. If you work multiple jobs, you can claim a credit on your tax return if you overpaid Social Security tax across all employers combined, though your employer cannot refund it directly.
Self-employment tax and the 2025 rate
If you are self-employed, you report net self-employment income on Schedule SE and pay both the employee and employer portions of Social Security tax. For 2025, that is 12.4% on net earnings up to $168,600, plus 2.9% for Medicare on all net earnings with no cap.
You can deduct half of your self-employment tax as a business expense on your tax return, which reduces your adjusted gross income. The IRS provides worksheets and software to calculate this; many tax preparers handle it automatically. If your net self-employment income is below $400, you do not owe self-employment tax, though you may still file to establish work history for Social Security.
Why the rate stays the same but the wage base changes
Congress set the 6.2% rate in 1990 as part of a broader Social Security funding agreement. Changing the rate requires a new law, which has not happened since then. The wage base, by contrast, is adjusted automatically each year by formula — it is not a legislative choice.
The wage base adjustment is meant to keep Social Security funded as wages in the economy grow. Without it, a larger share of workers' income would fall outside the tax system over time. The adjustment does not affect the percentage you pay; it only changes the income ceiling to which that percentage applies.
What happens to the money you pay
Social Security tax goes into two trust funds: the Old-Age and Survivors Insurance (OASI) fund and the Disability Insurance (DI) fund. These funds pay current benefits to retirees, disabled workers, and survivors of deceased workers. You do not have a personal account; the money you pay in 2025 goes out as benefits to people receiving them now.
Your payment record is tracked by the Social Security Administration under your Social Security number. The amount you paid in, combined with when you claim benefits and how long you live, determines your benefit amount. You can view your earnings record and estimated benefits on your Social Security account at ssa.gov.
Tax withholding and your paycheck
Your employer withholds Social Security tax automatically from each paycheck. You see it listed separately on your pay stub as "Social Security" or "OASDI" (Old-Age, Survivors, and Disability Insurance). The amount withheld is calculated by multiplying your gross pay by 6.2%, up to the annual wage base.
If you have multiple jobs, each employer withholds based only on what you earn at that job, not your total income across all jobs. This can result in overpayment if your combined earnings exceed the wage base. You claim the overpayment as a credit on your federal tax return (Form 1040, line 24e) when you file.
Frequently Asked Questions
Does the Social Security tax rate ever change?
The rate has been 6.2% since 1990 and does not change automatically. Changing it would require Congress to pass new legislation. The wage base, however, increases most years based on wage growth.
What if I work for two employers in 2025?
Each employer withholds 6.2% on what you earn at their job. If your combined earnings exceed $168,600, you will overpay Social Security tax. You can claim the overpayment as a credit on your federal tax return when you file.
Do I pay Social Security tax on bonuses and commissions?
Yes, bonuses and commissions are wages subject to Social Security tax, up to the $168,600 wage base for 2025. Once you reach the wage base in a calendar year, no additional earnings are taxed for Social Security that year.
Is Social Security tax the same as Medicare tax?
No. Social Security tax is 6.2% on wages up to $168,600. Medicare tax is 1.45% on all wages with no cap. Together they make up the 7.65% payroll tax you see on your pay stub (employee side).
Can I opt out of paying Social Security tax?
No. Social Security tax is mandatory for all employees and self-employed workers. Some narrow exceptions exist for certain religious groups and government employees hired before specific dates, but most workers cannot opt out.