FICA Tax Explained: Social Security & Medicare (2025)

Look at any US paystub and you’ll see a deduction labelled “FICA” — or sometimes split into “Social Security” and “Medicare.” FICA stands for the Federal Insurance Contributions Act, and it’s the payroll tax that funds two of the country’s biggest social programs. For most workers it’s a flat 7.65% of every dollar earned.

The two parts of FICA

• Social Security: 6.2%. Funds retirement, disability and survivor benefits. It only applies up to an annual wage base of $176,100 (2025) — earnings above that aren’t subject to Social Security tax.
• Medicare: 1.45%. Funds hospital insurance for people 65+. Unlike Social Security, there’s no cap — it applies to all your wages.

Add them together and the standard FICA rate is 7.65%. On a $60,000 salary that’s about $4,590 a year; on $100,000 it’s $7,650.

The Additional Medicare Tax

High earners pay a little more. An extra 0.9% Medicare surtax applies to wages above $200,000 (single) or $250,000 (married filing jointly). So above those thresholds, your Medicare rate effectively becomes 2.35% on the excess.

Employer match

Here’s something many people miss: your employer pays FICA too. They match your 6.2% + 1.45%, so a total of 15.3% is going to Social Security and Medicare on your behalf — you just only see your half on the paystub. (If you’re self-employed, you pay both halves yourself.)

FICA vs income tax

FICA is separate from federal income tax. Income tax is progressive (different brackets) and depends on deductions and filing status; FICA is a flat rate from the very first dollar with no standard deduction. Both come out of your paycheck — together they’re the bulk of what comes out of your paycheck.

See it on your salary

Our calculator breaks out Social Security and Medicare as separate line items for any salary, so you can see your exact FICA contribution alongside federal and state tax.