Understand your Social Security and Medicare tax contributions.
Calculate Your FICA Taxes
Enter your total gross annual income (e.g., 60000).
Employee
Self-Employed
Select whether you are an employee or self-employed.
Current year's Social Security taxable wage limit (e.g., 168600 for 2024).
Your FICA Tax Breakdown
Total FICA Taxes
Social Security Tax
Medicare Tax
Total Employee Contribution (if applicable)
Self-Employment Tax Deduction (if applicable)
FICA Tax = Social Security Tax + Medicare Tax.
Social Security tax is 6.2% up to a wage base limit. Medicare tax is 1.45% on all earnings.
Self-employed individuals pay both the employer and employee portions (15.3%) and can deduct half of their SE tax.
FICA Tax Table
Annual FICA Tax Contributions by Income Bracket
Annual Income
Social Security Tax
Medicare Tax
Total FICA
What is FICA Tax?
FICA, which stands for the Federal Insurance Contributions Act, is a U.S. federal payroll tax. It is levied on both employees and employers to fund two vital social insurance programs: Social Security and Medicare. Social Security provides retirement, disability, and survivor benefits, while Medicare offers health insurance primarily for individuals aged 65 and older, as well as for some younger people with disabilities. Understanding your calculate FICA contributions is crucial for managing your personal finances and appreciating the support these programs provide.
Who Should Use This Calculator?
Anyone who earns income in the United States, whether as an employee or self-employed, should understand their FICA tax obligations. This includes full-time employees, part-time workers, freelancers, independent contractors, and small business owners.
Common Misconceptions About FICA
A frequent misconception is that FICA taxes are a flat tax. In reality, the Social Security portion has a wage base limit, meaning earnings above a certain threshold are not subject to this tax. Another is that only employees pay FICA; self-employed individuals bear the full burden, paying both the employee and employer shares, though they receive a deduction. Many also underestimate the impact of FICA on their take-home pay.
FICA Tax Formula and Mathematical Explanation
The FICA tax calculation involves distinct rates for Social Security and Medicare, with a specific cap for Social Security.
Employee FICA Calculation:
Social Security Tax (Employee Portion): 6.2% of earnings up to the Social Security taxable wage base limit.
SS_Tax_Employee = MIN(AnnualIncome, FicaWageBase) * 0.062
Medicare Tax (Employee Portion): 1.45% of all earnings (no wage limit).
Medicare_Tax_Employee = AnnualIncome * 0.0145
Total FICA Tax (Employee):Total_FICA_Employee = SS_Tax_Employee + Medicare_Tax_Employee
Self-Employed FICA (Self-Employment Tax) Calculation:
Self-employed individuals pay both the employee and employer portions, totaling 15.3% (12.4% for Social Security + 2.9% for Medicare) on their net earnings from self-employment. However, the calculation is based on 92.35% of net earnings. They also get to deduct one-half of their self-employment tax liability.
Net Earnings from Self-Employment:NetEarningsSE = AnnualIncome * 0.9235
Social Security Tax (SE): 12.4% of earnings up to the Social Security taxable wage base limit.
SS_Tax_SE = MIN(NetEarningsSE, FicaWageBase) * 0.124
Medicare Tax (SE): 2.9% of all earnings from self-employment.
Medicare_Tax_SE = NetEarningsSE * 0.029
Total SE Tax:Total_SE_Tax = SS_Tax_SE + Medicare_Tax_SE
Deductible Portion of SE Tax:SE_Tax_Deduction = Total_SE_Tax / 2
This calculator helps you calculate FICA accurately based on these formulas.
Variable Explanations:
Variable
Meaning
Unit
Typical Range
Annual Income
Total gross income earned in a year.
Currency (USD)
$0 – $1,000,000+
FicaWageBase
The maximum amount of earnings subject to Social Security tax for the year.
Currency (USD)
$160,000 – $170,000 (Annually updated)
SS_Tax_Employee
Employee's share of Social Security tax.
Currency (USD)
$0 – (FicaWageBase * 0.062)
Medicare_Tax_Employee
Employee's share of Medicare tax.
Currency (USD)
$0 – (AnnualIncome * 0.0145)
NetEarningsSE
Adjusted earnings for self-employment tax calculation.
Currency (USD)
~92.35% of Annual Income
SS_Tax_SE
Self-employed Social Security tax (includes employer portion).
Interpretation: Sarah will have $5,737.50 deducted from her paychecks throughout the year for FICA taxes, funding her future Social Security and Medicare benefits. Her employer will match this amount.
Example 2: Self-Employed Scenario
Scenario: Michael is a freelance web developer who earned $90,000 in net income from his business. He is self-employed. The FICA wage base is $168,600.
Inputs:
Annual Income: $90,000
Employment Type: Self-Employed
FICA Wage Base: $168,600
Calculations:
Net Earnings Subject to SE Tax: $90,000 * 0.9235 = $83,115
Interpretation: Michael is responsible for paying the full $12,706.60 in self-employment taxes. However, he can deduct $6,353.30 from his taxable income, reducing his overall income tax liability. This amount reflects both his employee and employer contributions. You can use our calculate FICA tool to verify this.
How to Use This FICA Calculator
Our FICA tax calculator is designed for simplicity and accuracy. Follow these steps to understand your contributions:
Enter Annual Income: Input your total gross income for the year into the "Annual Income" field. This should be your earnings before any taxes are deducted.
Select Employment Type: Choose either "Employee" or "Self-Employed" from the dropdown menu. This is crucial as the calculation and tax burden differ significantly.
Adjust FICA Wage Base (Optional): If you are calculating for a year other than the current one, or if you need to use a specific limit, you can update the "FICA Taxable Wage Base (SS)" field. For most users, the default value (updated annually) is correct. This only applies to the Social Security portion.
Click "Calculate FICA": Press the button to see your estimated FICA tax contributions.
Reading the Results:
The calculator will display:
Total FICA Taxes: The combined Social Security and Medicare taxes you owe (or that are paid on your behalf).
Social Security Tax: The portion allocated to the Social Security program.
Medicare Tax: The portion allocated to the Medicare program.
Total Employee Contribution: For employees, this is the sum of their Social Security and Medicare tax contributions.
Self-Employment Tax Deduction: For the self-employed, this shows the amount of SE tax deductible for income tax purposes.
The table and chart provide a visual and tabular breakdown of FICA taxes across different income levels.
Decision-Making Guidance:
Understanding your FICA contributions helps in budgeting your net income. For the self-employed, it highlights the importance of setting aside funds for taxes and factoring in the deductible portion when estimating your overall tax liability. This tool can help you make informed decisions about tax planning.
Key Factors That Affect FICA Results
Several factors influence the amount of FICA taxes an individual pays:
Annual Income: This is the primary driver. Higher income generally means higher FICA taxes, up to the Social Security wage limit.
Employment Type (Employee vs. Self-Employed): Self-employed individuals pay both the employee and employer shares (15.3% total on 92.35% of net earnings), whereas employees typically pay 7.65% (split between employee and employer).
Social Security Taxable Wage Base: This annual limit is crucial. Once your income reaches this threshold, you no longer pay Social Security tax on earnings above it for the rest of the year. This significantly impacts high earners.
Medicare Tax Rate: Unlike Social Security, there is no wage limit for Medicare tax. It applies to all earnings at a flat rate, meaning high earners contribute more significantly to Medicare over time.
Deduction for Self-Employment Tax: Self-employed individuals can deduct one-half of their self-employment tax. This deduction lowers their taxable income, thus reducing their overall income tax burden, not their FICA tax itself.
Additional Medicare Tax: High earners may be subject to an additional 0.9% Medicare tax on income above certain thresholds ($200,000 for single filers, $250,000 for married filing jointly). Our basic calculator doesn't include this for simplicity but it's an important consideration for advanced tax planning.
State and Local Taxes: While FICA is a federal tax, some states have similar payroll taxes. Understanding the full scope of payroll deductions is essential.
Frequently Asked Questions (FAQ)
What is the current FICA tax rate?
The current FICA tax rate is 15.3% for employees and employers combined. This is split into 12.4% for Social Security and 2.9% for Medicare. Employees typically pay 7.65% (6.2% SS + 1.45% Medicare), and employers match this amount. Self-employed individuals pay the full 15.3% on a portion of their net earnings.
What is the Social Security wage base limit for this year?
The Social Security taxable wage base limit is set annually by the Social Security Administration. For 2024, it is $168,600. This limit can change each year.
Do I pay FICA on unemployment benefits?
Generally, unemployment benefits are subject to federal income tax but are typically NOT subject to FICA taxes. However, specific state rules might apply.
What happens if my income exceeds the Social Security wage base?
Once your earned income reaches the Social Security taxable wage base limit for the year, you will stop paying the 6.2% Social Security tax on any additional earnings. However, you will continue to pay the 1.45% Medicare tax on all your earnings.
How is FICA calculated for gig workers or independent contractors?
Gig workers and independent contractors are considered self-employed. They are responsible for paying self-employment tax, which covers both the employee and employer portions of Social Security and Medicare taxes (15.3% total), calculated on approximately 92.35% of their net earnings. They can also deduct half of this tax liability from their gross income for income tax purposes.
Can I opt out of paying FICA taxes?
Generally, no U.S. employee or employer can opt out of FICA taxes. It is a mandatory contribution to fund Social Security and Medicare. The only exceptions are for certain non-U.S. citizens working temporarily in the U.S. under specific international agreements or for individuals with specific religious objections who have obtained an exemption from Social Security coverage.
Is the FICA tax deductible for employees?
No, the employee's share of FICA taxes (7.65%) is generally not deductible on federal income tax returns. However, the employer's matching portion is a business expense. For self-employed individuals, half of their self-employment tax (which includes both shares) is deductible.
Will FICA taxes ever go up?
FICA tax rates and the Social Security wage base are subject to change. Congress can legislate changes to these rates or limits. Historically, adjustments have been made to ensure the solvency of the Social Security and Medicare programs.