FICA Tax Calculator: Calculate Social Security and Medicare Taxes

Understanding your FICA taxes is essential for accurate financial planning and paycheck budgeting. Our FICA tax calculator helps you determine exactly how much you'll contribute to Social Security and Medicare based on your income and filing status.

FICA (Federal Insurance Contributions Act) taxes are mandatory payroll deductions that fund two critical social insurance programs: Social Security and Medicare. As an employee, you pay 7.65% of your gross wages in FICA taxes, and your employer matches this contribution. For high earners, an additional Medicare tax of 0.9% may apply, bringing your total FICA obligation to 8.55% on wages above certain thresholds.

What is FICA Tax and Why Do You Pay It?

FICA tax is a federal payroll tax that provides funding for Social Security and Medicare programs. These programs offer retirement benefits, disability coverage, survivor benefits, and healthcare coverage for millions of Americans. The tax is split equally between employees and employers, with each party paying 7.65% on most wages (6.2% for Social Security + 1.45% for Medicare).

For 2025, the Social Security portion only applies to the first $168,600 of your annual earnings. This wage base limit typically increases each year with inflation. The Medicare portion has no wage limit, meaning you'll pay Medicare tax on all your earnings, no matter how high.

How FICA Taxes Are Calculated: A Complete Breakdown

Social Security Tax (6.2%)

The Social Security tax funds retirement, disability, and survivor benefits. Here's how it works:

• You pay 6.2% of your gross wages up to the annual wage base limit
• In 2025, the wage base is $168,600, so the maximum Social Security tax you'll pay is $10,453.20
• Your employer matches this amount, contributing another 6.2%
• If you earn more than the wage base, you stop paying Social Security tax for the remainder of the year

Medicare Tax (1.45%)

The Medicare tax funds healthcare for seniors and certain disabled individuals:

• You pay 1.45% on all your wages with no upper limit
• Your employer matches this amount, contributing another 1.45%
• Unlike Social Security, there's no wage base cap for Medicare tax
• The tax applies to every dollar you earn, regardless of amount

Additional Medicare Tax (0.9%)

High earners pay an additional Medicare tax on wages above certain thresholds:

• Thresholds: $200,000 (Single), $250,000 (Married Filing Jointly), $125,000 (Married Filing Separately), $200,000 (Head of Household)
• This tax only applies to wages above the threshold
• Your employer doesn't match this portion—it's employee-only
• Example: If you're single and earn $250,000, you pay 0.9% on $50,000 ($450)

Real-World FICA Tax Examples

Common FICA Tax Mistakes to Avoid

Planning Strategies Around FICA Taxes

For Employees:

• Maximize pre-tax contributions: 401(k), HSA, and FSA contributions reduce your FICA-taxable wages
• Time your income: If you're close to the Social Security wage base, timing bonus payments can optimize your tax impact
• Understand your paycheck: Review your pay stub regularly to ensure FICA withholding is accurate
• Plan for Additional Medicare tax: If you're a high earner, budget for the extra 0.9% tax on wages above the threshold

For Self-Employed Individuals:

• Consider an S-Corp election: Pay yourself a reasonable salary (subject to FICA) and take remaining profits as distributions (not subject to FICA)
• Maximize business deductions: Legitimate business expenses reduce your net self-employment income
• Make quarterly estimated payments: Avoid underpayment penalties by paying self-employment tax quarterly
• Track all business expenses: Keep detailed records to maximize deductible expenses and reduce taxable income

For High Earners Nearing Retirement:

• Time large compensation events: If possible, spread large bonuses or stock sales across tax years to manage Additional Medicare tax
• Maximize catch-up contributions: If you're 50+, take advantage of higher 401(k) and IRA contribution limits
• Consider Roth conversions strategically: Roth conversions create taxable income but aren't subject to FICA taxes

FICA Tax vs. Other Payroll Taxes

FICA taxes are just one component of payroll taxes. Understanding the complete picture helps with financial planning:

Key Distinction: FICA taxes fund specific social insurance programs and have dedicated rates and limits. Federal and state income taxes fund general government operations and use progressive tax brackets. This calculator focuses specifically on FICA taxes because they follow unique rules and limits.

How to Interpret Your FICA Tax Calculator Results

When you use our FICA tax calculator, you'll see several key pieces of information. Here's what they mean and how to use them:

Historical Context: How FICA Rates Have Evolved

Understanding the history of FICA taxes provides perspective on current rates and potential future changes:

Looking Ahead: Social Security and Medicare face long-term funding challenges due to demographic shifts. While rates have remained stable for decades, future adjustments to rates, wage bases, or benefit formulas may be necessary to ensure program solvency.